What’s one number you wish sellers disclosed upfront?
Revenue and EBITDA usually make it into the teaser. But some of the numbers that help you decide whether a business is worth pursuing only come out after several calls and document requests. How much revenue comes from the largest customer? How much cash is tied up in inventory and receivables? How much needs to be spent each year just to keep equipment running? Two businesses with similar EBITDA can leave very different amounts of cash available to a buyer. One might collect payments quickly and require little reinvestment. Another might need cash months before customers pay, or have equipment that’s overdue for replacement. Getting even one of those details earlier could help searchers focus their time and have more useful conversations with sellers. If you could ask sellers to include just one additional metric upfront, what would you choose and what would it tell you? Would be especially interested to hear about a number you discovered later in the process that changed your view of a deal.