In a recent LinkedIn post, Nick Bradley explores a critical, often overlooked, aspect of business sales: the significant impact of preparation on final valuation. While many founders focus solely on growing Earnings Before Interest, Taxes, and Amortization (EBITDA), Bradley argues that a lack of readiness can leave substantial wealth on the table, even when a seemingly generous offer is on the table.
Bradley highlights a scenario where a founder might accept a $70 million offer, believing it to be life-changing. However, he posits that this figure could be significantly lower than what the business is truly worth if it had been prepared for sale earlier.
“A founder can accept a $70M offer and still leave a fortune on the table.”
The core of Bradley’s argument centers on the concept of business readiness. He explains that the same company, if properly prepared 12 to 24 months prior to a sale, could potentially command a much higher multiple on its EBITDA. Using an example of a business with $10 million EBITDA, Bradley illustrates how a 7x multiple yields $70 million, but a properly prepared business might achieve a 12x multiple, resulting in $120 million – a difference of $50 million.
The Preparation Gap: More Than Just EBITDA
Bradley emphasizes that this valuation gap is not a reflection of a poorly built business, but rather a consequence of building a company for personal operation rather than for a strategic transfer to a new owner. He identifies the key differentiator as the level of readiness, not just the financial performance.
“The same business, prepared properly 12–24 months earlier, might have commanded 12x. That’s $120M.”
According to Nick Bradley, the true value driver in an exit scenario isn’t solely about growing EBITDA, but about proactively mitigating risks that a potential buyer can perceive. This proactive risk reduction, he argues, is where the most significant financial gains are realized.
Building for the Multiple, Not Just the Margin
Bradley challenges founders to shift their strategic focus. Instead of concentrating exclusively on maximizing immediate profits (the margin), he urges them to consider how to build the business to be attractive to buyers, thereby aiming for a higher valuation multiple.
“It’s not just about growing EBITDA. It’s about removing risk the buyer can see before you can.”
This strategic reorientation involves understanding what buyers look for and systematically addressing potential concerns or uncertainties well in advance of an actual sale process. As Bradley puts it, the question for founders should be:
“What would change in your business if you started building for the multiple, not just the margin?”
By shifting the mindset from operational efficiency for personal benefit to strategic preparation for acquisition, founders can significantly enhance their exit valuation. Bradley’s insights underscore the importance of long-term strategic planning and risk management as crucial components of a successful business sale, potentially unlocking millions in additional value.
📝 About This Content
This article is based on insights shared by Nick Bradley on LinkedIn.
📅 Originally posted on April 2, 2026 | View original post on LinkedIn →