Insights & Analysis
The Grey Brief
Institutional perspective on origination, founder psychology, and strategic transitions.
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.