In todayโs middle-market deal landscape, buyers arenโt simply looking for a company that is profitable. Theyโre looking for a company that is predictable, transparent, and operationally mature. And according to Jordi Pujol, CFAโManaging Director at Objective Investment Banking & Valuationโmost sellers underestimate how early this work needs to begin.
On the latest episode of This Is M&A, Jordi breaks down what truly moves the needle in buyer perception and valuation. His perspective comes from decades spent advising founders, management teams, and boards across a wide range of industries. The message is clear: the companies that command premium valuations arenโt just โgood businessesโโtheyโre businesses engineered to inspire confidence.
What Buyers Really Value (And Why Itโs Not Always Obvious)
Jordi explains that buyers prioritize a blend of operational discipline and financial clarity. Predictability in revenue streams, margin stability, customer concentration management, and well-documented processes are no longer โnice to have.โ Theyโre prerequisites for serious buyer engagement.
He also points out that many management teams misunderstand how buyers assess risk. To a seller, a minor reporting issue might feel like a footnote. To a buyer, the same inconsistency could signal deeper structural problems. When data isnโt clean and reporting isnโt standardized, uncertainty creeps inโand uncertainty always discounts valuation.
Valuation Is More Than a NumberโItโs a Narrative
One of the most compelling themes Jordi brings forward is that valuation is both an analytical exercise and a story. Buyers donโt just look at cash flows; they look at how the business achieved them, how sustainable they are, and whether the leadership team understands its own drivers.
Misalignment between the numbers and the narrativeโsuch as aggressive forecasts unsupported by historical performance, or unclear add-back logicโcan slow a deal or even derail it. Conversely, when a company presents a cohesive financial story backed by strong fundamentals and transparent modeling, buyers lean in.
Why Modeling and Reporting Problems Sink Deals
Jordi highlights a recurring challenge in the middle market: inconsistent, overly complicated, or outdated financial models. Small errors compound into large credibility issues. Buyers and their diligence teams immediately spot gaps or unclear logic, and once confidence erodes, negotiating leverage shifts sharply.
He stresses that sellers who invest early in clean financials, standardized reporting, and third-party validation have a distinct advantage. Not only do they move faster through diligence, but they also avoid last-minute price adjustments that stem from preventable data issues.
Leadership Preparation Starts YearsโNot MonthsโBefore an Exit
Perhaps the most strategic insight from the conversation is that the real work of preparing for an exit begins long before a transaction timeline is in place. Jordi observes that the highest-performing leadership teams take a proactive approach: they build processes, reporting structures, and governance systems well before buyers ever see the business.
This isnโt just about โgetting ready for diligence.โ Itโs about running the business in a way that naturally positions it as a desirable acquisition target. Companies that adopt this mindset often find that by the time they consider a sale, they are already effectively preparedโand buyers recognize that maturity immediately.
Watch the Full Conversation
Jordiโs insights offer a practical blueprint for founders, CFOs, and deal professionals who want to elevate valuation and reduce friction in the M&A process.
You can watch or listen to the full episode of This Is M&A here:
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