Most owners know the obvious value drivers in a merger or acquisition: revenue, profitability, equipment, customer contracts, and assets.
Those matter. Of course they do.
But during a recent conversation with Christopher Riegg, CFA, CPA, co-founder of Promontory Point Capital and founder of Promontory Strategy Group, we discussed several factors that often sit just below the surface. These are the value drivers that can influence buyer confidence, deal momentum, and valuation long before a transaction is complete.
The good news? Some of them are controllable.
Is It the Right Time to Buy or Sell?
Timing matters more than many leadership teams realize.
Chris noted that when companies are considering an acquisition, one of the first questions is not just, “Is this company available?” It is, “Is this the right time to acquire a company like this?”
That includes looking at:
- Industry outlook
- Market position
- Growth trends
- Competitive dynamics
- Risk factors that may affect future performance
A company may look appealing on paper, but if the industry is softening, customer demand is shifting, or margins are under pressure, the deal requires deeper scrutiny.
The same applies on the sell side. Owners may be ready emotionally, but the business may not be positioned for the strongest possible outcome.
Takeaway: Strategic timing and market position affect how buyers view risk. Less perceived risk usually means stronger value.
Can the Business Prove Its Performance Is Repeatable?
Buyers are not only buying what the company has done. They are buying what they believe the company can do next.
That is why operational credibility matters.
Chris pointed to several financial and operational factors buyers review closely, including:
- Revenue growth rate
- Revenue mix
- Customer concentration
- Customer segmentation
- Expense structure
- Working capital efficiency
- Capital expenditure needs
- Scalability of systems
- Leadership depth
Companies with diversified customers, documented processes, and scalable systems are easier to trust. They give buyers more confidence that performance is not dependent on a single owner, a single customer, or a single unusually strong year.
This is also where financial preparation matters. Externally reviewed financial statements can give lenders, buyers, and ownership teams more confidence, especially when capital needs arise unexpectedly.
Takeaway: Buyers want evidence that the business can continue to grow after the deal closes.
What Reputation Signals Are Buyers Seeing Before Diligence Begins?
This is where marketing, visibility, and reputation become part of the acquisition conversation.
Buyers research companies before the first formal meeting. They look at the website. They search for leadership. They review digital presence, customer signals, industry visibility, and market credibility.
For manufacturers and privately held companies, this is often an overlooked opportunity.
Many companies will invest heavily in equipment but hesitate to invest in digital visibility, brand clarity, or marketing systems. That creates a gap. A strong business may appear weaker than it is simply because its market presence does not reflect its true capabilities.
Reputation signals can include:
- A clear and current website
- Strong positioning
- Search visibility
- Customer testimonials
- Case studies
- Video and photo assets
- Leadership visibility
- Industry credibility
- AI and search discoverability
- Consistent messaging across channels
These assets may feel intangible, but they support the larger story: this company is credible, relevant, visible, and positioned for future growth.
Takeaway: Reputation does not replace financial performance, but it can reinforce buyer confidence.
What Should Leaders Strengthen Before a Deal?
The best time to improve enterprise value is not when the letter of intent arrives. It is months or years earlier.
Leadership teams can start by asking:
- Can we clearly explain why customers choose us?
- Are our financial records credible and ready for outside review?
- Do we have too much customer concentration?
- Are our systems scalable?
- Does our website reflect the quality of our business?
- Are we visible where buyers, lenders, and customers are looking?
- Do our reputation signals match our financial story?
The strongest acquisition opportunities happen when the numbers and the narrative support each other.
Final Thought
Not every business is preparing for a sale right now. But every leadership team should understand what drives enterprise value.
Whether you plan to sell, acquire, refinance, bring in new leadership, or simply build a stronger company, the same principle applies:
The more confidence you create, the more value you protect.