The Funnel, Ep. 4: How Do You Make Your Business More Valuable?

Founders often reach a point where they’re curious about what their business might be worth, only to realize the current valuation isn’t high enough to justify a sale. The natural next question is: how do you increase it? In this episode of The Funnel, Kirk outlines the practical steps that meaningfully move the needle for buyers. He covers financial readiness, adjusted EBITDA, and risk factors that can either strengthen or weaken deal value. Watch the video below to learn where to focus your time and why these steps matter.

In this episode of The Funnel, M&A advisor Kirk Michie explains how founders can increase the value of their business before entering the market. Many owners begin the exit planning process by estimating valuation, considering EBITDA multiples, and evaluating timing. When those early estimates fall short, the next step is understanding what actually drives higher valuation in a sale.

Kirk highlights three core areas buyers evaluate: professionalized financials, accurate adjusted EBITDA, and risk reduction. Converting from cash accounting to accrual accounting, preparing GAAP-compliant financials, and completing a preliminary quality-of-earnings review all help buyers trust the numbers. Calculating adjusted EBITDA through proper add-backs gives a clearer picture of transferable economics. He also outlines key risk factors such as heavy customer concentration and owner dependence, both of which can suppress valuation or limit buyer interest.

This guidance is relevant for founders exploring business exit planning, valuation improvement, and understanding what makes a company more attractive to buyers. The video provides a straightforward framework business owners can use before deciding whether it’s the right time to go to market.