We are two years out from a sale and are debating whether to invest our capital into aggressive new market expansion or focus entirely on maximizing our current EBITDA margins. How do we resolve this strategic tension?

Question

Tyler Smith · Accepted Answer

On a two-year exit runway, the rule is to optimize what works rather than betting on unproven growth engines. Initiating aggressive new market expansion right before a sale introduces operational complexity and execution risk, which sophisticated buyers will discount.

To resolve this tension, apply the EOS® skill of simplification. Focus your efforts on maximizing the profitability of your core, high-margin offerings.

Use your weekly Scorecard to identify where your margins are strongest and double down on those segments. Clean up any operational inefficiencies, automate repetitive tasks, and eliminate low-margin service lines.

A buyer will pay a higher multiple for a highly profitable, streamlined operation with a clear path to growth than for a complex, sprawling business with depressed margins due to recent capital-intensive expansion.

If you do have a clear expansion opportunity, document it as a turnkey growth plan for the buyer. Present them with the market research, the operational blueprint, and the projected return on investment. Let the buyer fund the expansion with their capital post-acquisition. By presenting a clean, high-margin engine alongside a detailed map for future growth, you maximize your valuation while minimizing your operational risk during the critical pre-sale window.