How to Make Your Business More Attractive to Buyers

Selling your business is often a once-in-a-lifetime decision. For many business owners in Michigan and the broader region, the goal isn’t simply to cash out—it’s to exit on your terms, reward years of effort, and secure your legacy. But landing the best result—highest price, favorable terms, multiple interested buyers—depends heavily on how attractive your business looks to those buyers.

At Breneman Advisors, we work with small- to middle-market owners (think $5 M–$100 M in revenue) — manufacturers, service firms, dealerships, tech firms — not Wall Street giants. And our focus is helping you make your company buyable.

To illustrate: imagine two companies in similar industries with similar revenue and profits. Company A starts preparing two years ahead of time: cleans up the books, builds a leadership team, documents growth plans. Company B waits until they “feel ready,” then rushes to market. When the offers come in, Company A attracts multiple buyers, gets strong terms and a solid price. Company B gets one cautious offer, a long earn-out, and fewer options. The only meaningful difference? Preparation made the business more attractive.

This article walks through why buyer-attractiveness matters, what buyers truly look for, and a six-step roadmap to get your business ready today.

Why Buyer Attractiveness Matters More Than You Think

Attractiveness influences price, terms, and stress level

When a business is clearly attractive to buyers, it draws more qualified bidders. More bidders create competition, and competition often drives up price and improves the structure of a deal (less earn-out, less seller financing). As one advisor puts it: “More buyer competition ultimately puts you in the driver’s seat as the seller.”

When your business is organized, with clean books and fewer surprises, diligence goes smoothly. That reduces the chance of last-minute re-trades or price drops. One noted M&A firm advises that many of the real value detractors in transactions come from surprises in diligence or delayed responses.

How buyers really think: risk, return, and effort

From the buyer’s perspective, they evaluate a business almost instinctively through three lenses:

Risk: How likely is it that the business will continue its performance after the owner leaves? If key customers leave, or operations collapse when the founder retires, that risk eats value.

Return: What profit and growth can realistically be achieved? Streams of recurring revenue, scalable operations, and addressable growth matter.

Effort: How hard will it be for the buyer to run the business post-closing? Is it turnkey, or is the owner doing everything? Buyers discount heavily for businesses dependent on one person.

Translating that into plain business preparation: clean books, recurring revenue or contracts, a management team, diversified customers, documented systems—all reduce risk, enhance return, and lower effort.

The mindset shift: from “my business is great” to “my business is easy to buy”

As owners, we often say: “My business is fantastic.” And it might be. But “great to you” does not automatically equal “buyable to someone else.” A buyer doesn’t pay a premium simply because you built it beautifully—they’ll pay because they believe they can take it over, keep the value, and grow it without your constant involvement.

So the shift is: instead of showcasing how complexly great your business is, show how cleanly and clearly a new owner can step in and run it. That means you need to package the business so the buyer can clearly see the path forward. The rest of this article is about how to do exactly that.

What Buyers Are Really Looking For

Here’s how the criteria buyers use translate into what an owner should prioritize.

Consistent, well-documented financial performance

Buyers want multi-year financials (preferably accrual based), clearly reported EBITDA or cash flow, and credible adjustments or “normalizations.” They’d rather see honest books than a flashy one-year spike with no support. As one advisor puts it: “messy but honest” is better than “polished but incomplete.”

A credible growth story, not just a history lesson

Past performance matters—it’s the foundation. But buyers are buying future potential. They’ll ask: “Where can this go in the next 3-5 years?” A thoughtful growth plan (new markets, new products, expansion) increases attractiveness.

A management team and succession plan buyers can rely on

When the owner wears every hat (sales, operations, finance, service), the business looks highly risky. Buyers want to see that the business can run without the owner, or at least that a plan is in place.

Diversified, loyal customers and stable suppliers

If 40 %+ of your revenue comes from one customer, that’s a red flag. Many buyers prefer no single customer above roughly 20-25 % of revenue (though exact thresholds vary). Supply chain risk works the same way—single-source suppliers create risk.

Clean operations, systems, and documentation

Buyers want confidence. If processes are ad-hoc, data inaccessible, contracts missing, then perceived risk creeps in. Organized operations and documentation reduce that risk.

Allegorical Example:
“Maria” owns a specialty packaging company. Two years before she planned to sell, she invested in a full-time controller, instituted monthly closes, and documented her key processes. When buyers asked for reports, her team responded in days (not weeks). That speed and confidence reduced buyer perception of risk—and one buyer increased their offer after diligence because they felt the business was lower risk.

Step 1: Get Your Financial House in Order

Upgrade your financial reporting

Move from tax-only records to management-friendly financials: monthly income statements, balance sheets, cash-flow statements, KPIs like gross margin, revenue by segment, and customer concentration. Buyers evaluate faster and more accurately when you’ve done this upfront.

Clarify and normalize your earnings

Explain and document adjustments for one-time or personal expenses that won’t continue, investments that depress current earnings but drive future value, etc. Buyers and their accountants need to follow your logic.

Address obvious red flags early

Examples include commingling personal and business expenses, stale receivables, odd related-party transactions. The sooner you clean these up, the fewer negotiation setbacks you’ll face.

Step 2: Build a Business That Can Run Without You

Strengthen your leadership team and succession

Buyers pay a premium when they’re confident the business will operate smoothly after you step away. Set defined roles, a clear successor or second-in-command, and a transition timeline.

Document key relationships and knowledge

Map out your top customers, suppliers, lenders, partners. Document how you manage those relationships: communication cadence, contracts, expectations. This helps mitigate “key person risk.”

Allegorical Example:
A Michigan machining shop’s founder personally managed three big automotive accounts. Over a year, he brought his operations manager and sales director into those relationships. When the company sold, the buyer had far less concern that the revenue would “walk out the door” with the founder.

Step 3: Reduce Risks That Scare Buyers Away

Customer and supplier concentration

Grow smaller accounts, add new product/service segments, diversify geographies. Build backup suppliers where you’re currently dependent on one source.

Legal, compliance, and housekeeping issues

Simple checklist: signed customer/vendor contracts, leases with sufficient remaining term, documented benefit plans, HR files up to date. These housekeeping items make your business transaction-ready and reduce hiccups in diligence.

Operational “single points of failure”

Identify systems where only one person knows how they work or manual processes that invite risk. Cross-train, document, standardize. These improvements need not be expensive—but they do lower perceived risk.

Step 4: Highlight Your Growth Story

Identify realistic growth levers

Buyers like to see opportunities such as entry into new markets, additional products/services complementary to current offerings, operational efficiencies to improve margins.

Turn your strategy into a simple, buyer-friendly narrative

Work on a concise overview: why the business exists, why customers buy, and how it can grow. Include a short list of growth initiatives and what’s required. Buyers should understand your story in a minute or two.

Allegorical Example:
A regional specialty food manufacturer drafted a three-year plan showing modest equipment investment plus a new distributor could expand into two neighboring states. The eventual buyer cited that plan as a key reason they paid a premium—they could clearly see where the upside came from.

Step 5: Prepare for Due Diligence Like Game Day

Build your “data room” before buyers ask

Think of this as a secure folder where you preload information buyers and their advisors will request—financials & tax returns; customer & supplier contracts; corporate documents; HR & benefits; operational data & KPIs. Organized data accelerates the process and builds buyer confidence.

Common questions buyers will ask and how to answer them

• “Why did revenue dip in this year or quarter?”
• “How do you acquire new customers?”
• “What are the biggest risks to your business and how do you manage them?”

Encourage owners to practice clear, honest answers—better to explain in advance than be defensive when asked.

How preparation can directly influence valuation

When surprises are few, buyers are less likely to ask for price reductions or heavy earn-outs. Clean diligence invites higher bids from multiple buyers who feel confident.

Step 6: Start Early and Build the Right Advisory Team

Why 12 to 24 months makes a difference

Third-party advisors consistently recommend that owners begin 12–24 months ahead of a sale to fix weaknesses and build value rather than rush into the market.

The role of an M&A advisor like Breneman Advisors

In plain language: we help you assess how attractive your business looks to buyers today, highlight where you can improve, create your story and marketing materials, orchestrate outreach, and manage the buyer competition so you drive price and terms—not buyers driving you.

Aligning the sale with your personal goals

Your objectives—how long you want to stay involved post-sale, what you want for employees and culture, cash at closing versus earn-out or rollover—all shape which buyers are the right fit, not just who offers the highest number.

Where to Start: A Simple 90-Day Action Plan

Weeks 1–4: Diagnose

• Gather three years of financials and tax returns.
• List your top 10 customers and their share of revenue.
• Identify key employees and their roles.
• Make a simple risk list: “What keeps me awake at night about this business?”

Weeks 5–8: Fix the obvious

• Clean up basic bookkeeping or reporting issues.
• Renew or clarify any expiring key contracts or leases.
• Start documenting at least one or two core processes (e.g., customer onboarding, production handoff).

Weeks 9–12: Shape your story and next steps

• Draft a one-page summary of what your business does, why customers choose you, and where growth lies.
• Have an initial conversation with an M&A advisor (such as Breneman Advisors) to benchmark readiness and timeline.

Allegorical Mini Case:
“James” believed his industrial services business was two years away from sale. A quick readiness assessment revealed process documentation was sparse and one large customer represented 45 % of revenue. In a 90-day sprint, he diversified one major customer and documented core processes. When he launched the sale two years later, he was already significantly higher quality and more flexible with timing—and the eventual buyer paid a premium.

Common Misconceptions That Hold Owners Back

“If I just grow revenue, buyers will pay top dollar”

Growth is important—but buyers pay for quality of earnings, future sustainability, and risk profile, not just top line. More revenue means nothing if it’s concentrated, unprofitable, or unsustainable.

“I can clean things up right before I sell”

Yes, late fixes help—but buyers look back multiple years and dig into trends. Improvements made ahead of time carry far more credibility.

“Buyers will figure out the growth story on their own”

In reality buyers compare multiple opportunities. A clear, owner-led growth narrative makes it easy for them to choose your company. A lack of clarity slows the process and reduces competition.

How Breneman Advisors Helps Owners Increase Buyer Appeal

Sale readiness assessments for small to middle market owners

We conduct an owner-friendly, structured assessment of: financial reporting, management & succession, customer/revenue profile, operational and legal readiness. The goal: show you where gaps exist and what to fix.

Value enhancement and preparation projects

We help prioritize which changes will deliver highest impact, coordinate accounting, legal, operational partners as needed, and build a compelling data-backed story for buyers.

Running a competitive sale process when the time is right

When you’re ready, we identify and approach the right strategic and financial buyers, manage the information flow and due diligence, and negotiate not just price—but structure, terms, and your post-closing involvement.

Conclusion

Start early, get the right team, build your story, and manage the process proactively. The contrast between the prepared owner and the rushed seller often plays out in tens of percentage points of value, and in far more stress and uncertainty. At Breneman Advisors, we're here to help you build the kind of business that buyers fight to acquire—and tailor the outcome around your goals, not theirs. Get in touch.

FAQs: What Business Owners Ask Most Often

How far in advance should I start preparing my business for sale?
Ideally 12–24 months. That gives you time to fix the issues that reduce buyer appeal rather than rushing into the market.

What financial information do buyers care about the most?
They want multi-year audited or reviewed financials (preferably accrual basis), clear EBITDA/cash flow, customer concentration data, margin trends, and credible adjustments.

What if one customer makes up a large percentage of my revenue?
It creates risk in a buyer’s eyes. You should work to diversify your customer base or document why that concentration has low risk (e.g., long-term contract, sole supplier).

Do I have to stay in the business after the sale, and for how long?
Not necessarily, but you’ll want a clear transition plan. Some buyers want you for 12-24 months as advisor; others want a full exit. Your preference affects buyer fit and terms.

Can my business still be attractive to buyers if it is smaller or very niche?
Yes—size is not the only driver. What matters is risk, return and effort. If you have a niche business with strong fundamentals, diversified customers, and growth story, you can attract buyers.

What is the difference between getting my business “ready” and actually going to market?
“Ready” means you’ve fixed or mitigated the major value detractors (financials, customers, management, systems) and packaged your story. “Going to market” means you call buyers, distribute a teaser, manage bids, diligence and negotiate—a different, much more intense phase.

When does it make sense to bring in an M&A advisor like Breneman Advisors?
As soon as you’re thinking of selling—or even thinking of passing your business on. An advisor helps you see your business from the buyer’s perspective, prioritize improvements, benchmark value, and orchestrate competition. Waiting until you’re “ready to list” may mean missed value.