We’ve been watching private equity for 20 years. Entrepreneurs talk about multiples, markets and products.
In the sale process, the buyer asks just one question: do I trust this team to deliver the plan?
I’ve supported transactions where the KPIs were clean and the valuation still fell.
Management couldn’t tell the story behind the numbers. No clear growth agenda. No ownership in due diligence.
Buyers look at four things:
• Strategic foresight
• Financial competence
• The ability to change
• Incentives that make sense
On top of that comes real digital substance.
If any one of these is missing, doubt creeps in. And doubt costs you multiples.
I’ve set out what investors want to see on each of these points, and where management teams fall short, in a slide deck on LinkedIn.
Where do you see the biggest gap right now?
