IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities. Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family businesses. The following blog article has been provided by Mendy Stoll of the Veritas AI Agency (https://veritasaiagency.com/):
Building a Business Buyers Want: How to Increase Value Before You Sell
A 76-year-old construction business owner recently came to me with a problem that is more common than many entrepreneurs realize.
His company had generated approximately $800,000 the prior year but was on track to produce closer to $500,000 this year. He knew he wanted to sell the business someday, but there was one major problem: the business still depended almost entirely on him.
Much of the company was still being run on paper. There was no CRM, no documented standard operating procedures, no structured hiring process, no meaningful KPI tracking, and no consistent system for generating new business. The owner remained the central hub through which nearly every important decision flowed.
When we talked, I explained that the goal wasn’t simply to increase revenue before a sale. It was to build a business that someone else could confidently own.
That conversation reminded me of another business owner.
Years ago, our CPA unexpectedly passed away at a relatively young age. He had built a successful practice and earned tremendous loyalty from his clients. We were among them. But much of the firm’s value was tied directly to him. There wasn’t a clear succession plan, many of his systems lived only in his head, and the client experience depended heavily on his personal relationships.
The firm hired another CPA. Clients left.
They hired another one. More clients left—including us.
His clients loved what he had built, but because so much of the business depended on him personally, much of what he spent years creating disappeared after he was gone.
That experience taught me something I’ll never forget:
Succession planning isn’t just about retirement. It’s about protecting your company’s value, your employees, your customers, and your legacy.
Buyers Are Buying the Future – Not Just the Financial Statements
When someone purchases a business, they’re certainly reviewing the financials.
But that’s only part of the equation.
They’re really asking:
- Will customers stay after the owner leaves?
- Can employees continue operating successfully?
- Is there a predictable system for generating new business?
- Can someone else step in and lead the company?
Or am I simply buying myself a job?
Two companies can generate the same annual profit while having dramatically different values.
One has documented processes, measurable systems, diversified customer relationships, and predictable lead generation.
The other relies on the founder to make every important decision.
Sophisticated buyers recognize the difference immediately.
Private equity firms, family offices, and strategic buyers aren’t looking to become the next operator. They’re investing in businesses that can continue growing after the founder exits.
The less dependent a business is on its owner, the broader the pool of potential buyers often becomes.
A Higher-Valued Business Is Usually a Better-Run Business
Business valuations are often based on a multiple of earnings.
While every business is different, buyers ultimately price risk.
Companies with predictable revenue, documented systems, capable leadership, and scalable operations generally represent less risk than companies built around one individual.
Increasing revenue is certainly important.
But reducing founder dependency can also improve how attractive a business is to prospective buyers and may positively influence the valuation buyers are willing to pay.
What Buyers Want to See
Although every industry is unique, buyers consistently look for several characteristics.
A Predictable Revenue Engine
Can the company consistently generate qualified opportunities?
Is there a repeatable sales process?
Does customer acquisition depend entirely on the owner?
Documented Systems
Businesses become significantly more transferable when processes live inside the company instead of inside the founder’s head.
Strong Leadership
The best businesses don’t require the owner to solve every problem personally.
They empower employees, delegate responsibility, and create accountability throughout the organization.
Operational Visibility
Clean financials matter.
But buyers also appreciate companies that measure performance, understand their KPIs, and know exactly where growth opportunities and operational bottlenecks exist.
Where Strategy and AI Come In
People often assume they hire Veritas AI Agency because of AI.
The reality is they’re hiring us for strategy.
AI simply allows that strategy to be executed with greater speed, scale, and consistency than traditional methods alone.
We begin by asking questions like:
- Where is revenue being lost?
- Which processes depend entirely on one employee?
- How can current employees accomplish more without adding headcount?
- Where are valuable hours being consumed by repetitive work?
From there, we help businesses build the infrastructure that supports sustainable growth.
That may include implementing a CRM, documenting standard operating procedures, building repeatable lead-generation systems, improving customer follow-up, establishing measurable KPIs, preserving institutional knowledge, and automating repetitive administrative work.
The goal isn’t to replace people.
It’s to help great people spend more time doing what humans do best – building relationships, solving problems, and making strategic decisions- while technology handles repetitive work behind the scenes.
Don’t Wait Until You’re Ready to Sell
One of the biggest mistakes business owners make is waiting until they’re ready to exit before preparing their business.
By then, it’s often too late to make meaningful improvements.
The strongest businesses are usually built years before they’re sold.
They’ve developed leadership.
They’ve documented systems.
They’ve diversified customer relationships.
They’ve built predictable revenue engines.
They’ve reduced dependence on the founder.
That’s where experienced advisors become invaluable.
Gregory Kovsky and the team at IBA have spent decades helping business owners understand what buyers value and how to position companies for successful exits. Their experience across thousands of transactions gives sellers practical insight into maximizing value, navigating negotiations, and avoiding costly mistakes throughout the sale process.
Build a Business Worth Buying
Whether you plan to sell in two years or twenty, one question is worth asking today:
If you stepped away tomorrow, what would stop working?
The answer often reveals where your greatest opportunities lie.
Strengthening those areas doesn’t simply prepare a company for a future sale.
It creates a stronger, more profitable, and more resilient business today.
And perhaps that’s the greatest irony of all.
The owners who build businesses that someone else would want to buy often end up creating businesses they enjoy owning even more.
About the Author
Mendy Stoll is the Founder and CEO of Veritas AI Agency, where she helps businesses increase revenue, improve operational efficiency, and build companies that are more scalable, transferable, and ultimately more valuable. Drawing on her background in executive sales leadership, luxury hospitality, and AI-driven business strategy, Mendy partners with business owners to implement practical systems that reduce founder dependency, strengthen operations, and position companies for long-term growth—or a successful exit.
She believes AI is most valuable when it supports a smart business strategy, allowing companies to execute with greater speed and scale without simply adding more employees.
If you have questions relating to the content of this article, Mendy Stoll, Founder and CEO of Veritas AI Agency., would welcome the opportunity to connect. Ms. Stoll can be reached at (310) 905-5033 or [email protected].
IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, and real estate communities on subjects relevant to the purchase & sale of privately held companies and family businesses. IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.