Want buyers to stretch on price? Improve the value drivers business sale investors underwrite: durability of revenue, quality of earnings, operational maturity, and risk. Here are the nine levers that consistently move multiples—plus fast actions you can take in the next 90–180 days.

1) Recurring & Contracted Revenue

Why it matters: Predictable revenue lowers risk and supports debt, so buyers pay more.
Quick wins:

  • Convert one-off projects into maintenance/subscription plans.
     
  • Add auto-renew terms and clear price-increase language.
     
  • Push for multi-year agreements with termination notice.
     

KPI to show: % of revenue under contract; net revenue retention (NRR).

2) Customer Concentration (or lack thereof)

Why it matters: A single customer >20–30% is a single point of failure.
Quick wins:

  • Land 3–5 mid-sized accounts to dilute the top customer.
     
  • Multi-thread relationships (exec sponsor + day-to-day + finance).
     
  • Secure longer terms with your top two accounts.
     

KPI to show: Top-5 customers as % of revenue; logo retention.

3) Margin Quality & Pricing Power

Why it matters: Strong gross margins give buyers room for add-backs and scale.
Quick wins:

  • Implement a pricing review—raise prices on low-elasticity SKUs/services.
     
  • Rationalize SKUs; cull low-margin products.
     
  • Improve mix with premium tiers or bundles.
     

KPI to show: Gross margin by product/segment; contribution margin

4) Documented, Transferable Operations (SOPs)

Why it matters: Businesses that run on process—not the owner—are safer bets.
Quick wins:

  • Map lead-to-cash and top delivery workflows; write concise SOPs.
     
  • Centralize in one searchable hub with version control.
     
  • Cross-train on critical tasks; create a 2-deep bench.
     

KPI to show: On-time delivery %, rework rate, cycle times.

5) Leadership Depth & Incentives

Why it matters: A capable team reduces key-person risk and accelerates integration.
Quick wins:

  • Publish an accountability chart with clear decision rights (RACI).
     
  • Tie variable comp to controllable KPIs (ops, CS, finance, sales).
     
  • Put retention plans in place for top leaders (activated at close).
     

KPI to show: Leadership coverage (2-deep), regrettable turnover.

6) Clean, Defensible Financials (QoE-ready)

Why it matters: Buyers discount uncertainty; clean numbers speed diligence.
Quick wins:

  • Close monthly on accrual; reconcile AR/AP, inventory, and bank.
     
  • Build a documented add-backs schedule with evidence.
     
  • Commission a sell-side Quality of Earnings (QoE).
     

KPI to show: Adjusted EBITDA bridge; cash conversion cycle.

7) Diversified Vendors & Resilient Supply

Why it matters: Single-source suppliers and fragile logistics increase risk.
Quick wins:

  • Qualify secondary suppliers and negotiate backup terms.
     
  • Add safety stock policies for A-items; lock logistics SLAs.
     
  • Standardize input specs to enable swaps.
     

KPI to show: Top-3 suppliers as % of COGS; supplier OTIF (on-time, in-full).

8) Technology & Data Hygiene

Why it matters: Modern systems lower integration cost and reveal growth levers.
Quick wins:

  • Implement MFA, backups, and access controls; patch cyber gaps.
     
  • Define KPI owners and a single-source dashboard.
     
  • Clean CRM and billing data; align product, customer, and revenue IDs.
     

KPI to show: Data match rate across CRM/ERP; support ticket backlog trend.

9) Growth Story With Proof (Pipeline & Playbook)

Why it matters: Buyers pay for what’s provably scalable, not just possible.
Quick wins:

  • Show 12–18 months of pipeline coverage and win-rate by segment.
     
  • Document 2–3 replicable growth plays (new geo, channel, upsell).
     
  • Pilot one play now and report early traction.
     

KPI to show: Pipeline coverage (3–4×), LTV:CAC, payback period.

90-Day Action Plan

  • Month 1: Pricing review, top-customer expansion plan, SOP draft for lead-to-cash, KPI dashboard live.
     
  • Month 2: Contract renewals with assignment clauses, backup suppliers, add-backs schedule, cyber basics.
     
  • Month 3: Cross-training, leadership incentives drafted, pilot a recurring offer, QoE scoping.
     

Red Flags That Drag Multiples (Fix Before Market)

  • 30% revenue from one customer.
     
  • EBITDA driven by aggressive add-backs with weak support.
     
  • Owner in all key decisions and relationships.
     
  • Handshake contracts, short leases without options.
     
  • Obsolete inventory or inconsistent costing.

How Exit Factor Helps You Lift the Multiple

  • Valuation Readiness Review: identifies your current multiple range and gaps.
     
  • Price & Contract Uplift: scripts and templates for margin and renewals with assignment language.
     
  • Owner-Dependence Sprint: SOPs, KPI dashboard, leadership coverage in 90 days.
     
  • Sell-Side QoE & Data Room: defensible add-backs, working-capital narrative, banker-grade materials.
     
  • Buyer Story & Go-to-Market: growth playbook, pipeline proof, and a narrative buyers underwrite.
     

Want a higher exit multiple?
Book a 20-minute consult with our experts. We’ll prioritize the value drivers business sale buyers care about most, execute the fixes, and position you to sell for more—with fewer surprises.