What should I do in the last six months before selling my business?

In the final 90 to 180 days before a sale, the moves that raise your exit multiple are rarely new revenue. Make revenue predictability visible, prove cash conversion, defend working capital, engineer competitive tension among buyers, and tighten deal structure. Clarity and structure move the multiple more than a last minute growth push.

Does growing revenue right before a sale increase valuation?

Usually less than founders expect. Buyers apply different risk discounts to different kinds of revenue, so repositioning and de risking the revenue you already have often moves valuation more than adding new sales in the last few months.

What is the difference between value creation and value realization?

Value creation is building the business. Value realization is what you actually get paid when you sell. They are different disciplines, and the stretch right before an exit is about realization, positioning, proof, and structure, not just more growth.

Writing

My Top 5 Things to Do Before You Exit

The 5 Moves That Increase Your Exit Multiple

Roland FrasierMarch 31, 20263 min read

TL;DR: The fastest way to increase exit valuation in the final 90 to 180 days is not chasing growth. It is making revenue predictability visible, proving cash conversion, defending working capital, engineering competitive tension, and tightening deal structure. Clarity and structure often move the multiple more than new sales.

The Top 5 Things to Do Before You Exit

Most founders assume the fastest way to increase valuation is to grow faster.

Sometimes that helps.

But in the final 90 to 180 days before a sale, the highest-leverage moves are rarely new revenue. They are clarity, positioning, and structure.

Value creation and value realization are different disciplines.

The first builds the business. The second determines what you actually get paid.

Here is where that discipline lives.

1. Re-Position Revenue So Buyers Underwrite It Differently

Buyers do not apply one multiple to “revenue.” They apply different risk discounts to different revenue types.

Before going to market, segment revenue into three tiers:

Contracted recurring revenue
Repeat but non-contracted revenue
One-time or project revenue

Then show gross margin, renewal rate, and EBITDA contribution by tier.

This changes the underwriting conversation.

Instead of arguing for a higher multiple, you demonstrate why part of the earnings stream deserves it.

Transaction research from Deloitte consistently shows that predictability and cash visibility drive valuation resilience in uncertain markets.

You are not changing the business. You are changing how it is perceived and priced.

2. Prove EBITDA Converts to Cash

Sophisticated buyers focus less on adjusted EBITDA and more on conversion.

Prepare a clean 24-month bridge:

EBITDA → Operating Cash Flow → Free Cash Flow

Remove inconsistent add-backs. Eliminate noise. Explain anomalies in advance.

Over-aggressive adjustments do not increase valuation. They increase scrutiny. Buyers pay more when they trust the number.

3. Control the Working Capital Narrative Early

Working capital is one of the most common areas where equity value erodes late in a deal.

Before launching the process:

Build a 12-quarter rolling working capital average
Document seasonality patterns
Define what “normalized” means

Do not let the buyer anchor the peg to a trailing month. Small preparation here often protects large dollars at closing.

4. Engineer Competitive Tension Intentionally

Premium outcomes correlate strongly with structured processes.

Advisory firms like Moelis & Company consistently highlight that disciplined multi-bidder processes increase both valuation and deal certainty.

Require IOIs to include:

Valuation range
Debt assumptions
Working capital peg
Structural outline

Stage information release. Limit exclusivity windows. Tie exclusivity to defined milestones.

Leverage is designed. It is not accidental.

5. Optimize Structure Before LOI

Headline price is only part of value. Before entering exclusivity:

Clarify net debt definitions
Address inefficient debt
Clean up unused credit facilities
Model rollover dilution scenarios
Pre-plan tax implications

Research from McKinsey & Company shows disciplined process management reduces value leakage and increases transaction certainty.

Structure determines how much of the headline number becomes realized wealth.

The Core Insight

In the final 3 to 6 months before a sale, valuation improvement rarely comes from new growth.

It comes from:

Revenue durability visibility
Cash conversion proof
Working capital discipline
Competitive tension
Structural clarity

Growth builds value, clarity multiplies it. Most founders focus on increasing earnings.

Fewer focus on increasing the multiple applied to those earnings.

The second often moves faster.

- Roland

Roland’s Riff

For years, I thought bigger always meant better. Then I ran the numbers.

When I compared my largest deals to my most profitable ones, they barely overlapped.

The deals that actually built wealth weren’t flashy. They didn’t make headlines. They just produced steady, predictable cash while everyone else chased scale.

That realization changed how I evaluate opportunities entirely.

Want to see why profitability beats press releases? Watch the video below.

Common questions

What should I do in the last six months before selling my business?: In the final 90 to 180 days before a sale, the moves that raise your exit multiple are rarely new revenue. Make revenue predictability visible, prove cash conversion, defend working capital, engineer competitive tension among buyers, and tighten deal structure. Clarity and structure move the multiple more than a last minute growth push.
Does growing revenue right before a sale increase valuation?: Usually less than founders expect. Buyers apply different risk discounts to different kinds of revenue, so repositioning and de risking the revenue you already have often moves valuation more than adding new sales in the last few months.
What is the difference between value creation and value realization?: Value creation is building the business. Value realization is what you actually get paid when you sell. They are different disciplines, and the stretch right before an exit is about realization, positioning, proof, and structure, not just more growth.

First published in Off the Org Chart.

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