There’s a saying we often tell clients: “Strong financials get you in the game, visible growth moves the number.”
Buyers are forward-looking. They’re trying to anticipate what comes next.
This means the ability to clearly articulate a credible future – in addition to last year’s revenue or EBITDA.
A strong growth story allows you to bridge the gap between where your business has been and where it can go next. It gives buyers a clear, believable path to future upside.
This week’s newsletter breaks down how to show growth in a way buyers actually believe.
We’ll cover:
- 3 insights into how buyers evaluate growth
- 2 frameworks to structure a compelling, credible growth story
- 1 action step you can take this week
3 Insights About Showing Growth
1. No one buys your past
Historical performance gets a buyer’s attention, but it doesn’t close deals. What buyers really want to understand is where the business is headed after you step away.
If future growth isn’t visible, buyers struggle to justify premium valuations, regardless of how strong the past looks on paper.
2. Sell when the business is trending up
Momentum matters. Buyers want to see a business that’s moving up and to the right, not one that’s flat or declining.
When sellers go to market during a downturn, the narrative shifts from growth to explanation. Instead of discussing opportunities, the conversation turns to risk.
Strong growth stories are built when the business is performing well and there’s a clear runway left for the next owner.
3. Untapped opportunities only matter if they’re clearly defined
Saying “we could grow with marketing” isn’t enough. Buyers hear that every day.
What matters is specificity. What channels? What services? What markets?
Even if the owner hasn’t executed on those ideas, clearly articulating how growth would happen can make the opportunity credible in a buyer’s eyes.
2 Frameworks Buyers Respond To
The 3-Part Growth Story
Every compelling growth narrative answers three questions:
1) Why the business started: The problem it solved and why it mattered
2) Where the business is today: Scale, stability, and current momentum
3) Where the business is going: Realistic growth opportunities over the next 3–5 years
This structure helps buyers understand the numbers, the logic behind them, and where they fit into the next chapter.
The “Up and to the Right” Rule Buyers care more about trends than single-year results. A steady upward trajectory in the following categories signals stability:
- Revenue
- Margins
- Backlog / Pipeline
- Multiple, repeatable growth levers (organic and inorganic)
Even a smaller business with consistent growth often attracts more interest than a larger business with volatile or declining performance.
List of Our Completed Transactions
1 Action Item This Week
Write your three-part business story
Explain: why the business exists, how it’s performing today, and where growth will come from next. If you can’t clearly articulate that story, buyers won’t be able to either.