During a sale, it’s essential for owners to operate the business as usual and not halt important investments. Delaying upgrades or new hires may seem reasonable before a sale, but this can harm both performance and valuation. If the deal falls through, neglecting growth puts the company at risk.
Potential buyers will notice deferred investments and may lower their offers, anticipating future costs. It’s better to continue investing in equipment, personnel, and raises so the business stays strong. Buyers are more likely to offer a higher valuation when they see recent improvements and a committed team.
Regular raises, replacing key staff, hiring as needed, and purchasing advanced equipment all help maintain momentum. Advisors can often argue that growth-related expenses should be added back to EBITDA, and unproductive new assets can justify a higher valuation.
Ultimately, keeping your business growth-ready by continuing to make investments one would make in the ordinary course of business makes the business more attractive to buyers and hence more valuable. An experienced banker can present these decisions favorably and help you achieve an optimal sale outcome.
