Many business owners believe the value of their company is determined by market timing. In reality, the biggest driver of business valuation is the preparation undertaken long before a sale process begins.
“Value isn’t something you find at the end of a process. It’s something you build in advance.”, wise words from Tom Murray, Head of Corporate Finance at Friel Stafford.
As featured in the Business Post, Tom explains why the 12–24 months before a sale can have the greatest impact on transaction outcome, particularly for owners considering succession planning, retirement, or a business exit strategy.
Why Businesses Lose Value in a Sale
In our experience advising Irish business owners on mergers and acquisitions, value is most commonly eroded due to:
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Unclear or unnormalised EBITDA, reducing buyer confidence
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Customer or founder over-dependence, increasing perceived risk
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Lack of a defined growth strategy, limiting valuation multiples
Buyers don’t pay for “good” businesses — they pay for businesses that are ready.
The Importance of Pre-Sale Preparation
Effective pre-sale enhancement focuses on four core areas:
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Financial clarity and defensible forecasting
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Commercial strengthening and margin stability
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Operational maturity and management depth
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Legal and structural readiness
When addressed early, these factors can significantly influence valuation and help close the gap between owner expectations and market reality.
With increasing founder retirements and international buyer activity across Ireland, business owners without a defined succession plan should treat a future sale as a likely outcome, and plan accordingly. Early preparation doesn’t just improve saleability. It can materially enhance value.
🔗 Read Tom’s the full article in the Business Post: https://www.businesspost.ie/commercial-reports/engineered-for-exit-preparation-drives-value/