Built to Last, Ready to Sell: What Every Business Owner Needs to Know
Building a successful business is one thing. Building a business that someone else wants to buy is another.
Throughout Creamer Media's In Focus: Built to Last series, in partnership with Deal Leaders International, industry experts explored what it takes for South African industrial businesses to grow, compete and create lasting value. From ownership and governance to growth strategies, the series examined the foundations of sustainable business success.
In the final episode, presenter Mariaan Webb was joined by Rick Grantham and Andrew Bahlmann, joint CEOs of Deal Leaders International, to tackle a question every business owner will eventually face: What does it take to make a business ready to sell, recapitalise or transition successfully?
Here are some of their key insights.
How much of the value of a business is determined before it goes to market?
Andrew Bahlmann: A significant amount of value is created years before a business goes to market. Yet many owners build successful companies without ever considering their eventual exit. The earlier you start thinking about an exit strategy, the more opportunity you have to make decisions that strengthen the future saleability of the business. You can never be completely prepared, but taking the right steps early, combined with the right sale process and the right buyers, can make a substantial difference to the outcome.
What does a transaction-ready business look like?
Rick Grantham: It starts with a shift in mindset. Many founder-led businesses are built around the owner's lifestyle and personal involvement. To become attractive to a buyer, the business needs to move beyond that. It doesn't have to be perfect. But owners need to consider profitability, reinvestment, forecasting and how the business operates independently of them.
The fundamental question is no longer, "What is this business worth to me?" It's "What makes this business valuable to someone else?"
What are the biggest mistakes owners make when preparing to sell their business?
Andrew Bahlmann: One of the biggest is failing to separate themselves from the business. There's an important difference between being self-employed and building a business that someone else can own and operate. Another is overlooking the fundamentals. Governance, financial reporting, compliance, management accounts and proper documentation may not be exciting, but they're essential. Buyers need evidence to support the value you're claiming. Owners also need to look beyond their own operations and understand how their business compares with others competing for buyer attention.
Can poor preparation cause an otherwise promising deal to fail?
Rick Grantham: Absolutely. A business might attract strong buyer interest, but that doesn't mean it's ready for a transaction. If fundamental issues haven't been addressed, they often surface later and can derail the deal. That's why getting the foundation right is so important. Sometimes the best advice we can give an owner is to wait six months or a year while specific issues are resolved. It's far better to address those problems before approaching buyers than to discover them halfway through a transaction.
Why doesn't strong financial performance guarantee a high sale price?
Andrew Bahlmann: Strong financial performance can support an attractive valuation on paper. But ultimately, a business is worth what someone is prepared to pay for it. Sellers naturally focus on the value they've created. Buyers assess that value through a lens of risk. A highly profitable business may still have significant customer concentration, exposure to volatile markets or limited contractual protection. Our role is to understand how buyers will perceive those risks, address them where possible and identify the buyers best positioned to see the full potential of the business.
6. What are buyers really looking for beyond the numbers?
Rick Grantham: Buyers want to understand what they can achieve with the business. The most attractive acquirer is often the one who can unlock opportunities that the current owner cannot, whether through new markets, greater resources, operational efficiencies or complementary capabilities. When we present a business, we're not simply explaining its past performance. We're helping potential buyers see what it could become in their hands. That's where strategic fit becomes particularly important, and where significant additional value can be created.
Build With the End in Mind
The central message from this Built to Last discussion is clear: building a successful business and preparing for a successful exit are closely connected, but they're not the same thing.
Strong financial performance matters. So do governance, management depth, sustainable growth and the ability to demonstrate value beyond the founder.
For business owners, the opportunity lies in thinking about these factors long before a sale becomes urgent.
At Deal Leaders International, this thinking underpins our approach to preparing businesses for market. Because achieving the right outcome isn't simply about finding someone willing to buy. It's about building a business that buyers want, understanding where its greatest strategic value lies and creating the conditions for a successful transaction.
Watch the Full In Focus: Built to Last series
Explore the full series for more insights into building sustainable businesses, creating long-term value and preparing for a successful ownership transition.
Click here to watch the full series.
