Create Value (Value & Valuation)

Most deals don’t fall apart because the business is “bad.” They fall apart because, right before or during diligence, buyers discover risks they didn’t price in. And when that happens, one of two things follows: The buyer asks for a price reduction , earnout , or bigger holdback , or The deal slows down, trust drops, and momentum dies Here are five value killers we see show up repeatedly — often late  — and what founders can do about them. 1) Customer concentration (and weak

Founders often ask, “What multiple can I get?” But buyers don’t start with a multiple. They start with a question: “How confident am I that this performance will continue, without surprises, after I buy it?” That’s why two companies with similar revenue can sell for very different outcomes. Buyers price durability, transferability, and risk . Premiums come from what reduces risk and increases upside. Discounts come from what creates uncertainty. Here’s what that looks like in

Founders often think valuation works like this: “If I build a DCF model, I’ll know what my company is worth.” DCF (discounted cash flow) is a useful tool — but it’s rarely the tool that decides what a buyer will actually pay. In real M&A, valuation is not a single number from a spreadsheet. It’s a negotiation shaped by three forces: Market pricing  (what comparable businesses are trading for) Buyer logic  (what this asset is worth to them ) Risk  (how much uncertainty the buy