128 - Would Your Business Get a Premium or a Discount?
What determines if your company gets a premium or a discount at exit? This episode explores the valuation factors that buyers analyse from governance and transferability to key-person risk and resilience.
Would Your Business Get a Premium or a Discount?
When founders dream of selling, they picture premium valuations. But when buyers step in, they apply reality and risk-adjusted pricing.
This episode draws a clear line between what drives up your value and what drags it down.
Key insights include:
1. Premiums are built, not assumed.
Buyers pay a premium when they see a company that runs independently. That means operational systems, clear governance, and a leadership team that doesn’t depend on the founder to function.
2. Discounts are the cost of fragility.
Dependency on one person, lack of digital infrastructure, and patchwork decision-making structures all send one signal to buyers: risk. And risk gets priced in aggressively.
3. Valuation isn’t about potential, it’s about proof.
Even if your company has growth ahead, buyers won’t pay for it unless the foundation is strong. They’re buying what exists, not what’s promised.
4. The difference between a 6x and a 10x is structural, not emotional.
Passion doesn’t move the needle. Systems do. If your business can thrive without you, it becomes an asset. If it collapses without you, it’s just an expensive job.
Final Insight:
Premiums don’t come from charisma. They come from confident buyers' confidence in your systems, people, and resilience.
This episode helps you assess whether your business will be rewarded… or penalised.
Highlights:
00:00 Introduction: Premium or Discount?
00:07 Factors Leading to Premium Valuation
00:13 Factors Leading to Discount Valuation
00:20 Conclusion: Assessing Your Business Value
Links:
Website: https://www.marcogrueter.com/
LinkedIn: https://www.linkedin.com/in/marcogrueter/
Transcript:
Would a buyer pay a premium for your company or discount it? Premiums come from systems. Transferable leadership and resilience. Discounts come from dependency outtake, tech and fragility. would your business get a premium or a discount?