Back in 2021 I sold my company, NewAir, to private-equity. Yes, the topline was strong—north of $80 million—but what really juiced the valuation was EBITDA quality and buyer confidence.
Here’s the kicker: I didn’t have a full-time CFO or a bloated C-suite. I used targeted moves—fractional talent, pricing tweaks, airtight ops—that added millions to the final number.
If you’re a founder-CEO eyeing a sale in the next 12-24 months, this playbook is for you. It’s exactly how we pulled extra cash out of the deal—no permanent exec payroll required.
1. Bring In Fractional Leadership (or Advisors)
Problem: Buyers need instant confidence in your numbers.
Solution: Rent a heavyweight CFO.
What a great fractional CFO does
| Impact | Why Buyers Care |
|---|---|
| Cleans up books & GAAP alignment | “No surprises” in diligence |
| Surfaces legitimate add-backs | Bigger adjusted EBITDA |
| Builds forecast in buyer-friendly language | They see growth + certainty |
| Joins diligence calls | Speaks Wall-Street fluently |
Case in point: Six months pre-sale, my fractional CFO uncovered $600K in add-backs we’d been missing. At a 5× multiple that became $3 million of extra enterprise value.
Takeaway: A fractional leader pays for themself ten-fold—and you’re still lean.
2. Tune Pricing & Customer Mix
Price isn’t a cost decision—it’s a value decision. Small shifts move the valuation needle fast.
Our three-step tune-up
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SKU Rationalization – Cut 20 % of catalog generating < 5 % of gross profit.
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Customer Cleanup – Fired two big accounts that eroded price and service margins.
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Strategic Pricing – Moved top sellers to value-based pricing; reset terms with B2B partners.
Result: +3 gross-margin points → millions in added valuation at exit. No pricing “guru,” just a spreadsheet and tough conversations.
3. Streamline Ops so You Look Scalable
“Pretty good” operations are not good enough when a buyer wires eight figures.
Checklist
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Clean ERP and matching financial/operational data
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Documented SOPs from PO → delivery
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Monthly reports that mirror what analysts want
Foggy numbers = buyer nervousness = lower price. Dial it in.
4. Nail Working-Capital Targets Before Diligence
Nothing stings more than a post-LOI working-capital claw-back.
Quick wins
| Lever | Why It Works |
|---|---|
| Liquidate slow inventory (6-9 mo out) | Turns excess stock into cash you keep |
| Tighten A/R terms | Lowers WC target the buyer negotiates |
| Stretch A/P (vendor talks) | Frees cash without hurting ops |
| Model WC yourself | Control the narrative, not the buyer |
I cut $1 million in inventory—got paid for it in valuation instead of seeing it lopped off at close.
5. Remove Founder Dependency
Buyers aren’t buying you. They’re buying a machine that runs without you.
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Elevate 1–2 lieutenants; let them own vendor & buyer conversations.
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Create a decision tree; step out of day-to-day calls.
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Bring those leaders to management-meetings with bidders.
Founder-light = risk-light = higher multiple.
6. Run a Competitive Process—Don’t Grab the First Offer
One unsolicited LOI feels flattering. Seven LOIs create a bidding war.
Why a banker-led process wins
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Competition pushes price up
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Better terms on earn-outs, rollovers, indemnities
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Optionality (culture, vision, cash vs hold)
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You control timetable
In my sale, top-to-bottom LOI spread: $6 million. Enough said.
7. Keep the Growth Pedal Down
Momentum is leverage. During our sale:
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We launched two new SKUs nine months pre-process.
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Sales beat forecast every quarter.
Buyers paid for the upside they saw but hadn’t yet captured—baked into the multiple.
Bottom Line
You don’t need a massive executive payroll to maximize exit value. You do need:
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Fractional expertise where buyers scrutinize most (finance, ops).
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Pricing & margin discipline.
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Process clarity that screams scalability.
Start 12–24 months out. The biggest regret I hear:
“I wish I’d started preparing earlier.”
Ready to find the hidden millions in your company?
Take the free Exit Readiness Score at Apex CEO or DM me on LinkedIn.
Let’s make sure you get paid for what you built.
