Most business owners assume buyers care about one number:

profit.

Profit matters, but it’s rarely the first thing a serious buyer looks at.

Before an offer is made, buyers focus on something more important: confidence in the numbers.

That confidence comes from clarity, consistency and control.

Buyers Don’t Buy Stories. They Buy Evidence.

When a buyer reviews a business, they’re not asking:

“Does this look successful?”

They’re asking:

• Can I trust these numbers?

• Are they repeatable?

• Will this business still perform without the owner?

That’s why many owners are surprised when offers come in lower than expected, or not at all.

The Key Numbers Buyers Care About

1. Consistent, Adjusted Profit

Buyers look for:

• Sustainable profit

• Adjustments clearly explained

• Minimal reliance on add-backs

Messy or aggressive adjustments reduce trust fast.

2. Gross Margin Trends

Margins tell buyers:

• If pricing is under control

• Whether costs are creeping up

• How scalable the business really is

Flat or falling margins raise immediate questions.

3. Cash Conversion

Profit is theoretical.

Cash is reality.

Buyers assess:

• Debtor days

• Stock levels

• Work-in-progress

• How quickly profit turns into cash

Poor cash conversion = higher risk.

4. Cost Structure & Overheads

Buyers want to see:

• Controlled overheads

• Costs that flex with revenue

• No unnecessary complexity

Bloated cost bases reduce valuation multiples.

5. Owner Dependency

One of the biggest value killers.

If profit relies on:

• The owner’s relationships

• The owner’s technical knowledge

• The owner working long hours

Buyers discount heavily or walk away.

Why Most Owners Miss This

Most owners run their business using:

• Annual accounts

• Bank balance

• Gut feel

That’s fine for survival.

It’s not enough for exit.

Buyers expect:

• Regular bookkeeping

• Management reporting

• Clear explanations

• Numbers that reconcile cleanly

Without this, confidence collapses.

Exit Value Is Built Years Before a Sale

Strong exits aren’t negotiated.

They’re designed.

Businesses that command higher multiples:

• Have clear, reliable numbers

• Understand their margins

• Control cash

• Reduce owner reliance

• Demonstrate repeatability

This all starts with control of the numbers.

Final Thought

If you want maximum exit value, profit alone isn’t enough.

Buyers pay for clarity, confidence and control.

And those things don’t appear at the point of sale.

They’re built long before it.