Why most women-owned businesses fail to sell for top value

I sat in on 3 acquisitions last year, as an advisor from the seller's side What do buyers say in public? "Great business, impressive growth." What do they whisper in private? Completely different story. Here's what they're really thinking: 1/ "This owner is the entire business" The kiss of death in any valuation. If you touch every decision: Your business value drops 40-60%. Buyers don't want your job. They want a machine that prints money. 2/ "Their numbers don't add up" Sloppy bookkeeping costs millions. One founder lost a $2M deal because: • Revenue was tracked in spreadsheets • Expenses weren't categorized properly • Profit margins kept changing Clean books = higher multiples. Always. 3/ "What happens when key people leave?" Buyers obsess over this question. If losing one person kills your revenue: Your valuation gets slashed. • Document everything. • Cross-train your team. • Make yourself replaceable. 4/ "This growth isn't sustainable" Buyers smell unsustainable growth instantly. They look for: • Repeatable sales processes • Predictable customer acquisition • Systems that work without the founder Hockey stick growth impresses no one. Consistent, systematic growth does. 5/ "The industry is too risky" Some businesses are just hard to sell. Buyers avoid: • Businesses dependent on one client • Rapidly changing technology sectors • Industries with heavy regulation Position your business in stable markets. Or be prepared for lower multiples. The brutal truth? Most businesses aren't sellable. Not because they don't make money. Because they can't make money without the owner. Start building your exit strategy today. Even if you're not selling for years. Found this valuable? ♻️ Repost to your network 🔔 Follow Surabhi Shenoy for more CEO insights Ready to build a buyable & attractive business? 𝗝𝗼𝗶𝗻 𝗖𝗘𝗢 𝗠𝗮𝘀𝘁𝗲𝗿𝘆 —my Free weekly newsletter trusted by 2000+ founders. Every Thursday, get battle-tested systems and strategies that I have used to build and sell my 2 MM$ businesses —straight in your inbox. 🎁 BONUS: Get instant access to my ‘CEO’s Growth Playbook’ 🔗 Click "View my newsletter" above👆 📲 Or scan the QR code in the image👇

WHY BEING TOO INVOLVED IN YOUR BUSINESS REDUCES ITS VALUE by at least 300% As a business owner, it’s easy to act and feel like you are at the center of everything. After all, this is your baby—you built it with your time, energy, and expertise. But here’s the catch: if your business can’t thrive without you, its value in the eyes of potential buyers will take a major hit. In fact, companies that rely heavily on their owner would only sell for just about one times earnings, if at all. That’s terrible, considering how much effort went into building it. Let me share a little story: Valerie’s Dilemma Valerie owned a digital marketing agency that had been thriving for a decade. She managed all the key client relationships, approved every strategy, and even handled some of the creative work herself. When she decided to sell the business and retire, she was shocked by the (lack of) offers she received, and the low valuation of her company. "After all these years I have put into this company, I can't even get 2X earnings for it when I sell?" Valerie said, shocked and dismayed. Most buyers loved the agency’s reputation and client base, but they had a big concern: What happens when Valerie leaves? Without her, the company couldn’t maintain the same level of performance. As a result, she only could get an offer for 1X the agency’s annual earnings. Compare that to another agency, owned by Cindy, whom Valerie knew from her early days in the industry. Cindy had spent years building a strong management team, creating repeatable processes, and shifting client interactions to other staff members. Cindy's agency sold for 4X earnings. The difference? The second agency wasn’t dependent on its owner—it was a machine that could run without Cindy. How to Make Your Business Sellable If Valerie’s story sounds familiar, don’t worry. You can make your business more attractive (and valuable) to buyers with a few moves: * Build a Strong Succession Team: Hire and train people who can handle key responsibilities without you hovering over them. * Document Your Processes: Create systems and workflows that ensure things run smoothly, even if you step away. * Spread Relationships Around: Don’t be the only one who knows the clients or suppliers. Get your team involved. * Empower Decision-Making: Let others take charge of day-to-day decisions so buyers can see that the business is self-sustaining. * Plan Your Exit Early: Start preparing for a sale years in advance, so you have time to make these changes. The Bottom Line Your role in the business is crucial—but it shouldn’t be irreplaceable. If your company can’t function without you, it is a risky proposition for buyers. On the other hand, a business that runs like a well-oiled machine, independent of its owner, can command multiples of its earnings. Ask yourself: are you building a business, or just a job for yourself? The answer makes all the difference to your future prosperity and freedom.

Most businesses don’t fail at the finish line. They fail at the handover. I’ve seen too many founders build great companies... But walk away with far less than they deserved...or worse, no exit at all. Why? Because they believed that valuation was just about: ✔️ Revenue ✔️ EBITDA ✔️ Market trends But here’s the truth from inside the boardroom: → Investors don’t just buy businesses. → They buy predictability, structure, and transferability. They ask: → Can this company run without the founder? → Are there systems that protect the value after acquisition? → Is the IP locked in or floating across team folders? Let me be blunt: → If you're still the decision-maker for every little thing… → If your process lives in your head… → If your team pauses when you're not in the room… You haven’t built a sellable business. You’ve built a dependency. Real exits are built on: → Transferable IP → Clear SOPs and delegation → A team that can scale without you → Recurring revenue models → Legal protection and governance structures These are the foundations that increase valuation multiples and make buyers feel confident in their investment. You don’t need a bigger sales team. You need a better system. 📩 Want to learn how to turn your expertise into structured, repeatable income streams? In our latest newsletter, I break down 5 silent strategies used by undervalued companies to scale from $3M to $100M+without noise, hype, or burn. Read it here: https://lnkd.in/gFckQe5D 🎯 If you want to scale quietly and exit smartly, don’t miss this read. #BusinessFinance #ExitStrategy #Valuation #IPStrategy #FounderMindset #MatteoTuri #BoardroomInsights #FinancialLeadership #CFO #ScalingBusiness