Derisk the Deal: How to Make Buyers Say Yes (Before They Even See the Profit) - Sam Penny | Business Coach for Owners & Investors

Derisk the Deal: How to Make Buyers Say Yes (Before They Even See the Profit)

When it comes to selling your business, most owners obsess over profit and revenue. But if you really want to attract serious buyers, command higher multiples, and walk away with more, there’s one crucial factor you can’t afford to overlook:

Risk.

Buyers don’t pay for potential.
They pay for confidence.
And confidence comes from de-risking the deal.

In this article, we’ll walk you through exactly how to remove the hidden risks that silently kill deals, or drive down your valuation. Whether you're 12 months away from a sale or still in growth mode, this is your blueprint to building a business buyers want to buy.

📌 Why Buyers Say “No” (It’s Not What You Think)

Let’s clear up one of the biggest misconceptions:
Buyers don’t walk away because of your price; they walk away because of uncertainty.

You could show half a million in profit, or a million in EBITDA. But if the buyer feels exposed, confused, or concerned, the deal will fall apart, or get a discount you didn’t expect.

Buyers don’t want to buy your job.
They want to buy a machine that runs without you.

They’re not buying potential. They’re buying predictability.

So the question becomes: What makes your business feel predictable, stable, and low risk in the eyes of a buyer?

Let’s explore that next.

🧠 The Buyer Mindset: What They’re Really Buying

Most sellers believe the buyer is buying:

  • Revenue
  • EBITDA
  • Growth potential

But what buyers are actually buying is:

  1. Confidence - That the business will continue to perform after they acquire it.
  2. Continuity - That operations, team, and customers will stick around.
  3. Control - That they can pull levers and get predictable outcomes.

If you can demonstrate these three elements clearly, you instantly increase your perceived value, and lower the buyer’s perceived risk.

So how do you do it?

With the Five Deal De-riskers™.

🔑 The Five Deal De-riskers™ (That Increase Value Instantly)

Here’s the core framework I use with private clients to increase business value, even without changing profit. These five areas are where buyer fear lives, and where value can be unlocked.

1. Remove Yourself From the Business

If your business can’t survive without you, it’s not a business, it’s a job with overheads.

Buyers want independence, not dependency.

Ask yourself:

  • Could you take a month off right now without chaos erupting?
  • Who makes critical decisions when you’re offline?
  • Are client relationships tied to you or to your business?

The less you’re needed, the more your business is worth.

👉 Your goal: Reduce your involvement to <10 hours/week in the business. Build leadership beneath you. Delegate decision-making. Document the strategic roles you still fill.

2. Systemise Operations

Systems don’t make your business boring, they make it sellable.

Buyers don’t just ask “What does this business do?”
They ask “Can it keep doing it without the current owner?”

That means:

  • Documenting repeatable processes (SOPs)
  • Automating wherever possible
  • Cross-training your team
  • Removing “tribal knowledge” that lives in your head

You don’t need 100+ processes to start. Just nail the 10 most critical workflows that drive revenue, delivery, and operations.

👉 Your goal: Build a shareable, usable knowledge base with checklists, screen recordings, and templates; not War & Peace.

3. Lock In Recurring Revenue

If your business starts at $0 revenue every month, it’s a problem.

Buyers love predictability, and nothing builds that faster than recurring revenue.

Here’s how to build it:

  • Convert one-off services into monthly retainers
  • Offer subscriptions, memberships, or ongoing service plans
  • Use loyalty programs and contracts to improve retention

Even if you can’t formalise recurring billing, you can still engineer repeatability.

👉 Your goal: Aim for 40-60% of your revenue to be recurring or contracted. That creates momentum that a buyer can ride.

4. Clean Up Your Financials

Sloppy financials are a top deal killer. Even a great business with strong profit can fall apart if the books don’t make sense.

You need:

  • 3 years of clean, categorised P&Ls
  • Normalised EBITDA with clear addbacks
  • Reconciled balance sheet with no unexplained liabilities
  • Clear separation between business and personal expenses

Buyers don’t want to interpret chaos. They want numbers they can trust.

👉 Your goal: Have accountant-reviewed financials, not just for tax, but for clarity. Present them like a pro.

5. Plan the Handover (Before the Deal)

Most sellers think about the handover after the deal is done. But by then, the damage is done.

A strong transition plan:

  • Builds confidence
  • Reduces buyer anxiety
  • Helps secure a better offer and cleaner terms

You need to:

  • Map out the first 90 days post-sale
  • Document who does what, and how you’ll support the buyer
  • Provide onboarding docs, vendor contacts, and internal workflows

👉 Your goal: Have a clear 90-day handover pack ready before the buyer asks. Show them you’ve thought it through.

💡 Real Case Study: $280K Uplift Without Changing Profit

Let’s look at this in action.

A client I worked with had:

  • $400K EBITDA
  • Two clients making up over 50% of revenue
  • No documented systems
  • A 60-hour workweek
  • No handover plan

Initial valuation: 2.4x EBITDA = $960,000

We worked on four key areas:

  • Reduced owner time to 10 hours/week
  • Documented 18 core SOPs
  • Diversified client base (top 5 clients now 45% of revenue)
  • Created a 90-day transition plan

Same profit. But the multiple increased from 2.4x to 3.1x.

Final valuation: $1.24 million; a $280,000 uplift without increasing profit.

That’s the power of de-risking.

🧭 Where to Start: Business Readiness Report

The biggest challenge? Knowing where to start.

When you’re deep in the day-to-day, it’s hard to see your blind spots. What feels “normal” to you might look like chaos to a buyer.

That’s why I created the Business Readiness Report.

✅ It scores your business across 8 buyer-critical value drivers
✅ Shows your strengths and exposures
✅ Gives you a personalised, actionable roadmap

It only takes 5 minutes to complete — and it could be the most valuable 5 minutes you invest this year.

Take the Readiness Report →

🔥 The Bottom Line: Less Risk = More Value

Selling your business isn’t just about revenue or EBITDA.

It’s about making your business feel like a safe, confident, controllable investment in the eyes of a buyer.

Here’s the truth:

Risk up → Multiple down
Risk down → Valuation up

These aren’t fluffy improvements. They’re hard, tangible levers that change the outcome of your sale.

And even if you don’t plan to sell anytime soon, the same moves give you:

  • More time
  • More freedom
  • More leverage
  • More control

So don’t wait until you’re ready to sell. Start now.
Because buyers don’t pay for potential. They pay for peace of mind.

👋 Ready to De-Risk Your Business with Sam?

If you’re serious about preparing for a successful exit — or you just want a business that gives you your time back — let’s talk.

In my 90-day private coaching program, we’ll:
✅ Identify your top deal risks
✅ Implement the 5 Deal De-riskers
✅ Systemise, document, and build buyer confidence
✅ Clean up your financials
✅ Create a winning handover pack

Book a free 30-minute chat with me here:
👉 BOOK NOW

Let’s build a business buyers fight for — not walk away from.

🧠 Related Reads

Author: Sam Penny | Business Coach for the Brave
Podcast: Built to Sell | Built to Buy

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