Most business owners believe their company’s valuation is based on its past performance — years of hard work, steady growth, and strong financials. But here’s the truth that stops entrepreneurs in their tracks:

The buyer is not interested in the past. They are buying the future of the business, and it is the future potential of the business that creates its value.

This turns traditional thinking on its head. If you’re preparing to sell, you need to stop talking about what your business was and start showing buyers what it could become in their hands.

Your Business Isn’t a House — It’s a Plot of Land with Potential

Think about selling a business like selling property. Most people assume a house is valued based on its bricks, size, and location. But imagine if a buyer paid based on what they could build on that land instead of what currently exists. Suddenly, a modest house sitting on prime development land becomes infinitely more valuable.

The same applies to your business. A strategic buyer isn’t looking at your last five years of revenue — they’re looking at what they can do with your business over the next five years.

The Real Question Buyers Are Asking

Buyers — especially strategic acquirers — aren’t just looking for stable revenue. They’re asking:

• How can this business scale under our ownership?

• What untapped markets can we unlock?

• What synergies can we create to multiply profits?

• How quickly can we achieve a return on investment?

   

If your business has strong strategic value — like a unique customer database, proprietary technology, or distribution channels that a buyer can leverage — it can command a premium price far beyond standard valuation multiples.

Why Some Businesses Sell for 2x Earnings — And Others for 20x

Ever wondered why some businesses sell for a low multiple of their profits, while others get acquired for eye-watering sums? The difference lies in how well the business has positioned itself as a future opportunity rather than just a profitable entity.

Take WhatsApp’s sale to Facebook for $19 billion. It wasn’t about WhatsApp’s revenue at the time — it was about the access to a billion users that Facebook could monetise in ways WhatsApp never could.

Closer to home, in the UK mid-market, businesses in tech, healthcare, and data-driven industries often achieve 10x or even 20x multiples — not because of their current cash flow, but because of the strategic advantages they offer an acquirer. Reports from M&A Monitor UK & Ireland and BVB Insights highlight that businesses in high-growth industries or those with proprietary data, intellectual property, or strong market positions command premium valuations far above traditional profit-based multiples.

Additionally, standard financial sales (e.g., small manufacturing businesses) often sell for 2x–5x EBITDA, while strategic acquisitions can range from 10x to 20x EBITDA when there is strong synergy potential. The key is positioning your business as a tool for exponential growth in the hands of the right buyer.

How to Make Your Business Look Like an Opportunity, Not Just a Track Record

If you want to sell for a premium, here’s what you need to do:

Stop Selling Your Story — Start Selling Theirs

Buyers don’t care about your journey. They care about how your business fits into their strategic growth plan.

Identify Your Strategic Value

What unique assets or advantages does your business offer that a bigger player could leverage?

This could be:

• A customer base they can sell more products to

• Proprietary technology they can integrate

• A brand that adds credibility to their portfolio

• Paint a Clear Picture of Future Growth

• What happens when a buyer plugs your business into their network?

• How quickly can they scale it?

• What synergies will make this acquisition a no-brainer?

   

Create Competition Among Buyers

The best way to drive up your exit price is to make multiple buyers see the potential in your business. When buyers see what others might do with your business, they’ll pay more to secure it for themselves.

Final Thought: Are You Thinking Like a Seller or a Buyer?

If you’re planning to sell your business, start thinking like a buyer. Position your company as an asset with untapped potential, not just a business with a solid history.

When you stop selling yesterday and start selling tomorrow, that’s when you unlock the highest valuation for your business.