My Top 5 Things to Do Before You Exit

TL;DR: The fastest way to increase exit valuation in the final 90 to 180 days is not chasing growth. It is making revenue predictability visible, proving cash conversion, defending working capital, engineering competitive tension, and tightening deal structure. Clarity and structure often move the multiple more than new sales.

The Top 5 Things to Do Before You Exit

Most founders assume the fastest way to increase valuation is to grow faster.

Sometimes that helps.

But in the final 90 to 180 days before a sale, the highest-leverage moves are rarely new revenue. They are clarity, positioning, and structure.

Value creation and value realization are different disciplines.

The first builds the business.
The second determines what you actually get paid.

Here is where that discipline lives.

1. Re-Position Revenue So Buyers Underwrite It Differently

Buyers do not apply one multiple to “revenue.” They apply different risk discounts to different revenue types.

Before going to market, segment revenue into three tiers:

• Contracted recurring revenue

• Repeat but non-contracted revenue

• One-time or project revenue

Then show gross margin, renewal rate, and EBITDA contribution by tier.

This changes the underwriting conversation.

Instead of arguing for a higher multiple, you demonstrate why part of the earnings stream deserves it.

Transaction research from Deloitte consistently shows that predictability and cash visibility drive valuation resilience in uncertain markets.

You are not changing the business.
You are changing how it is perceived and priced.

2. Prove EBITDA Converts to Cash

Sophisticated buyers focus less on adjusted EBITDA and more on conversion.

Prepare a clean 24-month bridge:

EBITDA → Operating Cash Flow → Free Cash Flow

Remove inconsistent add-backs. Eliminate noise. Explain anomalies in advance.

Over-aggressive adjustments do not increase valuation. They increase scrutiny. Buyers pay more when they trust the number.

3. Control the Working Capital Narrative Early

Working capital is one of the most common areas where equity value erodes late in a deal.

Before launching the process:

• Build a 12-quarter rolling working capital average

• Document seasonality patterns

• Define what “normalized” means

Do not let the buyer anchor the peg to a trailing month. Small preparation here often protects large dollars at closing.

4. Engineer Competitive Tension Intentionally

Premium outcomes correlate strongly with structured processes.

Advisory firms like Moelis & Company consistently highlight that disciplined multi-bidder processes increase both valuation and deal certainty.

Require IOIs to include:

• Valuation range

• Debt assumptions

• Working capital peg

• Structural outline

Stage information release. Limit exclusivity windows. Tie exclusivity to defined milestones.

Leverage is designed. It is not accidental.

5. Optimize Structure Before LOI

Headline price is only part of value. Before entering exclusivity:

• Clarify net debt definitions

• Address inefficient debt

• Clean up unused credit facilities

• Model rollover dilution scenarios

• Pre-plan tax implications

Research from McKinsey & Company shows disciplined process management reduces value leakage and increases transaction certainty.

Structure determines how much of the headline number becomes realized wealth.

The Core Insight

In the final 3 to 6 months before a sale, valuation improvement rarely comes from new growth.

It comes from:

• Revenue durability visibility

• Cash conversion proof

• Working capital discipline

• Competitive tension

• Structural clarity

Growth builds value, clarity multiplies it. Most founders focus on increasing earnings.

Fewer focus on increasing the multiple applied to those earnings.

The second often moves faster.

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Whats Going On Recently

For years, I thought bigger always meant better. Then I ran the numbers.

When I compared my largest deals to my most profitable ones, they barely overlapped.

The deals that actually built wealth weren’t flashy. They didn’t make headlines. They just produced steady, predictable cash while everyone else chased scale.

That realization changed how I evaluate opportunities entirely.

Want to see why profitability beats press releases? Watch the video below.

Thinking About Exiting Your Business?
You’ve built something incredible, now it’s time to make sure you get the most from your exit. We’ve helped countless entrepreneurs maximize their business sales, ensuring they walk away with more than just a deal, they walk away with the best deal possible.

Want to see what’s possible for you? Schedule a complimentary call (click here) today to see how I can help you get the most out of your exit.