Preparing for an Exit: What Your Business Needs to Look Like to Attract Buyers

Every founder dreams of the headline number on exit day, yet few appreciate the months of preparation required to earn it. Headlines come from competition among buyers, and competition only happens when the asset looks investable from every angle. In practical terms that means operational readiness, transparent metrics, and a growth narrative that survives forensic due diligence. If any one element is missing, private equity firms will either mark down the valuation or walk away. 

The bar is rising fast. Debt is more expensive, lenders demand tighter covenants, and investment committees now reject deals at the faintest whiff of hidden risk. A 2025 Bain & Company study showed that mid-market sales processes in Europe now take sixteen weeks on average, up from twelve in 2022, largely because buyers request deeper cuts of granular data before they bid. Brands that prepare early, benchmark their performance, and address weak spots up-front often shave four weeks off diligence and protect two to three turns of EBITDA on valuation. 

This article distils a decade of exit preparation at eComplete into a step-by-step playbook. You will learn the specific metrics investors scan first, the operational proof points that reassure them, and the growth story angles that keep competitive tension alive to the end. Whether you plan to sell in twelve months or simply want the option open, these guidelines will move you miles closer to investment readiness. 

Prove Your Numbers: Financial and Unit Economics 

Investors buy future cash flows, not pitch-deck optimism. Show them numbers they can trust and you establish credibility from day one. 

1. Clean, Audited Financials 

Buyers bridge reported profit to adjusted EBITDA. If your addbacks are weak or undocumented, expect a haircut. A 2024 Grant Thornton survey found that disputed addbacks reduced headline price by an average 18 per cent. Record every one-off cost with invoices and board minutes ready. 

2. Contribution Margin Waterfall 

Gross margin tells only half the story. Investors track profit per unit after everything it costs to get the product into the customer’s hands. Build a waterfall that starts at gross margin and deducts: 

Aim for more than 30 per cent contribution margin post-returns. Anything below signals that marketing expansion could push you into cash burn. 

3. Cohort Retention and LTV:CAC 

Retention proves product fit and defends valuation. Publish twelve-month cohorts by acquisition channel. Every cohort should retain at least 40 per cent of revenue by month twelve. Then layer customer lifetime value over the true cost to acquire. Serious buyers want a 3x LTV to CAC ratio with payback inside nine months. 

 If your payback sits at twelve months or more, show an in-flight initiative (first-party data or loyalty launch) reducing it. Buyer models will run your forecast assumptions, so demonstrate momentum not static snapshots. 

4. Working Capital Discipline 

Deals often fail during the working capital adjustment at completion. Provide rolling inventory ageing, stock-turn history, and creditor days. Foundations that use open-to-buy planning and hold less than 120 days of inventory reassure buyers that cash will not evaporate post-close. 

Demonstrate Operational Excellence 

Financial metrics answer the “what.” Operational readiness answers the “how” and “how scalable.” 

1. Supply Chain Resilience 

Map your suppliers, 3PL partners, and manufacturing footprint. Investors discount businesses that rely on a single factory or freight route. Show: 

A table works well here. 

2. Tech Stack Health 

Critical systems should scale without a code freeze every Black Friday. Document: 

If legacy platforms lurk, price and timeline for migration must be built into forecasts. 

3. Fulfilment Cost-to-Serve 

Best-in-class DTC brands keep pick-pack-ship below 12 per cent of net sales. Display month-over-month trend lines and explain any spikes. Buyers who cannot benchmark that cost will assume the worst and mark down price. 

4. Governance and Reporting 

PE firms like businesses that already run board packs, monthly KPI dashboards, and rolling forecasts. It signals that post-deal reporting will not be a culture shock. If you have a part-time CFO, invest in processes now. 

Founder quote 

 “Installing weekly flash reports added two hours a week but saved six million off the purchase price because we answered investor questions instantly.” 

Articulate a Credible Growth Narrative 

Buyers pay for what the business will do, not just what it has done. The growth narrative connects historic performance to future upside in a way that feels achievable. 

1. Market Headroom 

Include third-party reports (Statista, Euromonitor) quantifying total addressable market and growth rate. Focus on the serviceable obtainable market: the slice you can realistically capture given distribution and price positioning. Inflated TAM numbers trigger scepticism. 

2. Expansion Levers 

List two or three growth levers and attach numeric impact: 

3. Marketing Efficiency Roadmap 

Show how customer acquisition will scale without cost-per-click spiralling. Examples: first-party data activation, affiliate expansion, or shifting budget from prospecting to retention. Attach test-and-learn timelines and budget allocation. 

4. Team Depth and Succession 

Buyers worry about key-person dependency. Build an org chart highlighting tenure, stock options, and retention incentives. If founders plan to step back, outline a transition plan and any new executive hires in pipeline. 

De-Risk for the Buyer: Governance, Compliance and Integration 

Even the strongest numbers can wobble if integration appears messy. Proactively address compliance and process questions. 

1. Regulatory and Legal Readiness 

2. ESG and Sustainability 

Increasingly mandatory for institutional investors. Provide emissions baseline, packaging reduction roadmap, or supplier code of conduct. 

3. Integration Playbook 

Show how your systems, culture, and processes will bolt onto a larger platform. An integration summary might include: 

 A concise integration memo can add real comfort. It demonstrates you understand acquisition from the buyer’s side and have thought through day one and day ninety handovers. 

Conclusion 

Exit-ready businesses share three traits: they present transparent, benchmarked metrics, they run operations that scale smoothly, and they communicate a growth plan grounded in evidence not hype. Ticking those boxes moves a company from speculative interest to active bidding. Waiting until diligence to fix gaps almost guarantees a valuation haircut or, worse, a broken process. 

eComplete has been on both sides of the table. As operators we have built brands to sale. As investors we have screened dozens of data rooms and know instantly which ones feel bulletproof. Our data platform benchmarks your KPIs against hundreds of deals, flags red zones, and maps the fixes. When your numbers line up, your processes prove scale, and your narrative excites buyers, exit conversations shift in your favour.