93 - What Buyers and Investors Want? It’s Not Just Revenue
Investors don’t pay for revenue, they pay for predictability. This episode unpacks what truly drives premium valuations and how to structure your business to attract the right buyers or investors.
What Buyers and Investors Really Want? It’s Not Just Revenue
Founders often assume that revenue is the golden metric when preparing to attract buyers or investors. But in reality, revenue alone is never enough. What truly drives valuation is a powerful equation that far too many business owners fail to understand.
This episode delivers a wake-up call and a strategic framework to help entrepreneurs structure their companies for real investor appeal.
1. The Real Valuation Equation.
Valuation = Profit × Predictability × Growth Potential × Risk Reduction.
Each variable multiplies the others. Miss one, and your value drops fast.
2. Predictability Is the Premium Driver.
Investors don’t buy what you made last year. They buy the confidence that you’ll continue to make it and more without depending on founder heroics. This means:
• Clean data, not gut feeling.
• Consistent KPIs that show progress.
• Systems that reduce dependence on key individuals.
3. Risk Kills Multiples.
If your revenue relies on one person, one client, or one channel, expect the discount. Buyers aren’t looking for projects; they’re looking for predictable, stable, and scalable businesses.
4. Growth Must Be Clear and Structured.
A compelling growth roadmap is a must. Not vague aspirations, real, modeled strategy with timelines, levers, and milestones that demonstrate scale readiness.
Conclusion:
Revenue is just the starting point. What buyers and investors really want is confidence in your team, your systems, your numbers, and your growth trajectory.
This episode gives you the mental model to stop chasing top-line wins and start engineering enterprise value that scales, sells, and sustains.
Highlights:
00:00 Introduction: What Buyers and Investors Really Want
00:11 Understanding Valuation: Key Factors
00:27 What Buyers Truly Seek Beyond Numbers
00:37 The Importance of Predictability in Revenue
00:51 Conclusion: Assess Your Investor Readiness
Links:
Website: https://www.marcogrueter.com/
LinkedIn: https://www.linkedin.com/in/marcogrueter/
Transcript:
What buyers and investors really want, it's not just revenue. Investors don't buy revenue. They buy predictability, and most owners miss this until it's too late. If I had to summarize my 25 plus years of being part in deals, it's this. The valuation equals the profit, times the predictability, times the growth potential times the risk reduction.
Buyers want more than numbers. They want systems that run without you. KPIs, that signal momentum, not chaos. A growth road map. They actually, they, if your revenue comes with risk, expect the discount. But if your revenue comes with predictability and clarity, you get the premium multiple, your future buyers are watching. Build predictability now, if you want to know how investor ready you are, get the free scorecard.