By Christine McDannell
M&A Advisor Founder of the AI Implementation Club
A founder asked me last Tuesday if he should sell now or wait. He was…
A founder asked me last Tuesday if he should sell now or wait. He was tired. The grind was real. He wanted out, and I understood why.
So I asked him one question: if you disappeared for 30 days, what breaks?
His answer was everything. Every client relationship. Every decision. Every fire. All him.
The Risk Factor
That's the problem. When a buyer sees a business that runs on ONE person, they see risk. And they price it in. The discount for owner dependence runs anywhere from 20% to 50%.
So we didn't list.
Building the Machine
We need to now spend time implementing AI into how the business actually runs. Same revenue. Same clients. Different machine. So it can easily work without him being the bottleneck.
Here's what that will do to the number. I built a quick animated chart so you can see the two lines split.
The Math
A digital agency at $1.5M in EBITDA sells around 3x when it depends on the founder. That's $4.5M.
The same agency, systematized and running clean, sells closer to 7x. That's $10.5M.
Same business. Same revenue. We can MORE THAN DOUBLE the exit. A $6M swing, and the only difference is whether it still needs you.
A New Approach
And here's why this matters to me right now.
Too many businesses are coming to me wanting to sell, and they're just not ready. They won't get the price they want.
For years I ONLY listed businesses for sale. That was the focus, on purpose. I rarely got in on the building and fixing side with founders.
That changes now, and I'm excited about it. I get to roll up my sleeves and help them maximize the exit before we ever list. In there with them, hands dirty, building the business a buyer pays more for.
Your Move
The bottom line? If your business can't run without you for 30 days, you're not selling a company. You're selling a job. And buyers know the difference.
Whether it's AI, systems, or the right team, removing yourself as the bottleneck isn't just good for your sanity. It's worth millions at the exit table.
What's the one thing in your business that still ONLY you can do?