What Buyers Are Actually Looking For When They Evaluate Your Business

When founders start thinking about selling their business, they often assume it’s all about top-line revenue or a perfectly polished pitch deck. The reality? Buyers are looking for clarity, consistency, and confidence in your numbers—and more importantly, in your business model.

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At Anchor Valley, we work with founders to make sure they’re telling the right story when the time comes to exit. Here’s what most buyers are actually looking for.

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The 3 Core Numbers That Matter Most

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1. Adjusted EBITDA

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This is the foundation of most deal valuations. Buyers want to see normalized, sustainable earnings—not inflated short-term gains or one-off spikes. Clean financials and transparent adjustments build trust and help justify your asking price.

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2. Customer Concentration

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If more than 40% of your revenue is tied to one client, it’s a red flag. Buyers don’t want key person risk—especially when it comes to customers. The more diversified your revenue base, the more attractive your company becomes.

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3. Churn

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Churn tells the story of stability. Whether it’s customer, revenue, or employee churn, buyers want to see that your business retains value over time. High churn can be overcome, but only with a solid plan and demonstrated improvement.

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It’s Not Just the Numbers

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Buyers are increasingly focused on the operational engine behind the numbers. They’re asking:

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• Is revenue predictable and repeatable?
• Are your systems documented and scalable?
• Will the team stick around after the close?
• Does the business still work if the founder steps back?

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Storytelling matters—not just in how you pitch your business, but in how well it runs without you.

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Common Pitfalls That Kill Deals

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• Founder Dependency: If you’re the bottleneck in every decision, it scares buyers.
• Messy Financials: Inconsistent books and unclear cash flow forecasting make diligence painful.
• No Handoff Plan: A lack of transition planning can derail an otherwise great offer.
• Last-Minute Prep: If you start prepping for a sale after you get an LOI, you’re already behind.

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How to Be Exit-Ready (Before You’re Ready to Exit)

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• Start cleaning and normalizing your financials now
• Build dashboards or reports that tell a clear, month-to-month story
• Document critical SOPs
• Address customer concentration
• Start building a narrative around your growth levers
• Think about what a buyer will need to feel confident

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Buyers want deals to close smoothly. If you can show them you’ve already done the work, you move to the front of the line.

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Final Thoughts

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You don’t need perfect numbers or a full-time CFO to start exit prep. You just need to know what matters, and start getting intentional.

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At Anchor Valley, we help founders prep their financials, strengthen their story, and navigate the path from interest to offer—and from offer to close.

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Thinking about selling in the next 6–18 months?

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Let’s talk.

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