The founder was proud that he handled all the big sales himself.
I told him he just cut his exit value in half.
It’s a ~$2M company. Been at it for years. Good margins. Happy customers.
He wanted to know why buyers weren’t interested.
The problem? Every sale comes from him. Every key relationship. Every big decision.
He thought this made his business valuable. It made it worth… less. A lot less.
Here’s the math on what “irreplaceable” costs you:
Scenario 1: Owner-Dependent Business
- $500k EBITDA
- 2-3x multiple (high transfer risk)
- Sale value: $1M-$1.5M
Scenario 2: Professionally Managed
- Same $500k EBITDA
- 5-6x multiple (low transfer risk)
- Sale value: $2.5M-$3M
The difference? $1.5M.
That’s what being the “only one who can do it” costs you.
The thing about professional buyers is they don’t want to buy you. They want to buy a business that works without you.
Your job isn’t to be irreplaceable. It’s to make yourself replaceable.
Build a sales team. Document your relationships. Create systems that transfer.
Otherwise, you’re not building a business. You’re building a job you can’t sell.
What’s the one thing in your business that only you can do?