The Grey Brief

Insights to help business owners scale smarter, plan better, and navigate strategic transitions.

Exit Planning Shivam Shirolawala Exit Planning Shivam Shirolawala

How Institutional Buyers Quantify and Price Founder Dependency

While founders focus on financial metrics, buyers obsess over a different question: what happens when you leave? Sophisticated acquirers build models that translate founder dependency into specific valuation discounts, often 20-30% of enterprise value. Understanding how buyers quantify this risk—and systematically eliminating it—separates premium exits from discounted sales.

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