In a recent LinkedIn post, Greg Head offers a critical perspective on business growth, arguing that true value creation for owners hinges on understanding and manipulating financial levers rather than simply pursuing expansion. Head, a consultant and advisor, distinguishes between focusing on growth and obsessing over enterprise value, a distinction he believes is crucial for business owners aiming for a successful exit.
According to Head, unchecked growth can be detrimental if it isn’t profitable, predictable, or sustainable without the owner’s direct involvement. He emphasizes that buyers are not primarily motivated by rapid growth alone, but rather by evidence of profitable, durable, and repeatable performance.
“Buyers don’t pay for ‘we grew fast.’ They pay for profitable, durable, repeatable performance.”
Understanding Key Financial Levers
Head outlines specific financial areas that directly influence a company’s acquisition multiple. He suggests that focusing on these levers can transform a company into a more attractive asset for potential buyers.
EBITDA Margin Expansion and Cost Management
One of the primary levers identified by Head is the expansion of EBITDA margin. This involves not only increasing revenue but also improving the contribution margin on products and services. Head advocates for a critical review of offerings, suggesting that low-margin products or services that drag down overall profitability should be eliminated.
Reducing Customer Concentration
Another critical factor highlighted is customer concentration. Head advises that the top three customers should ideally represent no more than 20-30% of total revenue. This diversification reduces the risk for a buyer, as the potential impact of losing a single major client is significantly mitigated.
Increasing Recurring Revenue
The shift towards recurring revenue models, such as contracts, retainers, and subscriptions, is also a key focus for Head. He contrasts this with reliance on one-off projects, which can create revenue unpredictability. Predictable revenue streams are far more appealing to buyers looking for stability.
Working Capital Optimization
Furthermore, Head points to the importance of optimizing working capital. This includes accelerating cash conversion cycles and ensuring a clean balance sheet, which reduces surprises during the due diligence process and signals efficient operations.
“Every line item is either: ~Building toward a compelling acquisition narrative ~Or quietly undermining it.”
The Story Your Financials Tell
Head posits that a company’s financial statements already tell a story to potential buyers. This narrative can either make the business appear highly saleable and independent of the current owner, or signal significant risk and difficulty in post-acquisition integration.
“The companies that command premium valuations have financials that scream: ‘This business is profitable, durable, and scalable without the founder.’”
He elaborates that sophisticated buyers and family offices understand the language of strong financials, which includes predictable margins, diversified revenue, efficient operations, and clean accounting records. Head challenges business owners to consider the narrative their own financials would convey.
The Owner’s Role in Financial Storytelling
As Greg Head notes, the transition from focusing solely on growth to strategically improving financial metrics can be transformative. He shares his experience of turning underperforming companies into saleable assets not through increased effort or headcount, but by allowing the financials to present a more compelling case to buyers.
“Right now, that story either makes them: ~Lean in: ‘This will perform without the current owner.’ ~Or check out: ‘This will be expensive and risky to fix.’”
In conclusion, Greg Head’s insights on LinkedIn underscore a fundamental shift in perspective for business owners: value creation is less about relentless hustle and more about strategic financial management that builds a robust, attractive, and ultimately saleable enterprise.
📝 About This Content
This article is based on insights shared by Greg Head on LinkedIn.
📅 Originally posted on July 6, 2026 | View original post on LinkedIn →