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The Risks That Scare Investors—and the Strengths They Pay For

The best time to prepare your business for sale isn’t when you’re ready to exit—it’s years before. Discover what buyers actually look for, and how building a sellable company makes it easier (and more profitable) to run right now. This series of articles are a guide to build enterprise value now, so you have options later.

By Jon Polenz, Managing Partner
August 28, 2025

The best time to get ready to sell your company is years before you actually plan to. And not just because you can bake more value into it, but because it’s easier and more profitable for you to run.

I’ve interviewed Mark Cuban, Sheryl Sandberg, and hundreds of other founders and CEOs. And here’s what I’ve learned: the vast majority of business owners think that selling their business comes down to charm, hustle, or a perfectly timed economic wave.

Not even close.

When buyers evaluate your business, they’re not just listening to your pitch—they look under the hood. If you want a life-changing offer one day, you need to know exactly what’s under your hood and make sure it’s running flawlessly. 

What Investors want to see 

  • Predictability: Recurring revenue, consistent sales, and a steady stream of customers. Stability is bankable.

  • A Healthy Financial Profile: They’re looking for growing revenue and solid margins. Not just sales spikes, but upward trends over multiple years.

  • Growth Potential: Clear opportunities to scale: new markets, better product mix, or expansion strategies.

  • A Strong, “Backable” Team: If the business can’t run without you, it’s not a business, it’s a job. Investors don’t buy jobs. They pay top dollar for teams that can operate without founder babysitting.

These aren’t just investor priorities—they should be yours too. Build them, and your business becomes not only more sellable but far easier to run.

What Investors Avoid

On the other hand, the following risks are deal-breakers for investors, and will make your life infinitely harder if you don’t deal with them now:

  • Customer or Project Concentration: If 70% of your revenue comes from one client or project, that’s risky. What happens if they leave?

  • Supplier or Supply Chain Dependency: Relying on one key vendor or overseas shipment with zero backup plan? That’s a red flag in flashing neon.

  • “Key Man” Risk: If you or one critical team member disappears and the business falls apart, the buyer isn’t going to pay top dollar… They're going to run.

  • Market or Industry Headwinds: If you’re in an industry facing major disruption or declining demand, you need a clear plan to evolve. 

No company is perfect. But you need to be intentional and able to explain what you’ve fixed and why.

Start by asking:

  • Do you have reliable and diversified revenue streams?

  • Could your team (or someone else’s) run the business without you tomorrow

If the answer is no, that’s okay. That’s why you start now.

Focus on what’s in your control:

  • Strengthen customer retention strategies

  • Trim wasted expenses (investors will spot them anyway)

  • Cross-train your team so no role can be a failure point

  • Document key processes (if it only lives in your head, it’s a liability) 

Investors aren’t robots; they’re people with the same doubts and fears you have. They want to put their money into something resilient, scalable, and worth betting on. And when you build that kind of business, you don’t just create a sellable asset, you create freedom, peace of mind, and real options for yourself down the road.

You’ve already built something amazing. Now it’s time to make it bulletproof. 

I know it’s hard work. But the fact you’re reading this means you’re smart enough to recognize that a few deliberate steps today will save you massive headaches later.

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Next in: How to Create Enterprise Value →

About the Author Jon Polenz, Managing Partner

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