We are eighteen months away from launching our sale process, and our leadership team is divided on whether we should invest our remaining cash into aggressive customer acquisition or focus strictly on cutting costs to maximize our EBITDA margin. Which strategy is more attractive to buyers?

Question

Tyler Smith · Accepted Answer

Buyers pay for sustainable profitability, not temporary growth spikes. While top-line growth is attractive, a buyer will quickly discount your business if that growth is driven by unsustainable customer acquisition costs that destroy your operating margins.

On your exit runway, focus first on optimizing your margins and proving the efficiency of your business model. Use your EOS tools to identify and eliminate waste, simplify your core offering, and maximize your profitability. A clean, high-margin operation is much easier to sell than a complex, low-margin business.

Once you have established a highly profitable baseline, you can present a clear growth roadmap to buyers, showing them exactly where to invest their capital to scale the business. By showing both historical profitability and a clear path to future growth, you position your business to command the highest possible multiple in the market.