The Hidden KPIs Buyers Evaluate Before Valuing Your Business
Before discussing valuation multiples, buyers quietly screen potential acquisitions using a set of key performance indicators (KPIs) that reveal risk, scalability, and earnings quality.
Before discussing valuation multiples, buyers quietly screen potential acquisitions using a set of key performance indicators (KPIs) that reveal risk, scalability, and earnings quality.
A retrade occurs when a buyer attempts to renegotiate price or deal terms after signing a Letter of Intent (LOI), typically during due diligence. Buyers retrade when they uncover new risks, question financial assumptions, detect performance changes, or reassess market conditions.
When selling a business, most owners focus on valuation and cash at closing. But in many mid-market transactions—especially those involving private equity—buyers propose an equity rollover.
Interest rates directly influence business valuations, buyer behaviour, deal structure, and exit timing. When rates rise, borrowing becomes more expensive, which can reduce acquisition leverage and pressure valuation multiples.
When acquiring a SaaS company, buyers focus on revenue quality, customer retention, scalable growth, unit economics, and operational predictability.
When selling a business, the headline purchase price rarely equals what the owner ultimately takes home. Hidden costs—such as working capital adjustments, transaction fees, tax structuring, earn-outs, rollover equity risk, and post-closing obligations—can significantly reduce net proceeds.
The mid-market M&A landscape entering 2026 looks fundamentally different from what many business owners remember from prior sale cycles.
The mid-market M&A landscape entering 2026 looks fundamentally different from what many business owners remember from prior sale cycles.
Roll-ups and platform deals are private equity–backed acquisition strategies where multiple businesses are combined to create a larger, more valuable enterprise.
A Letter of Intent (LOI) outlines the key commercial and legal terms under which a buyer proposes to acquire your business. While often described as “non-binding,” several LOI clauses materially affect valuation, deal structure, and your negotiating leverage.