Every founder dreams of a big exit. But dreams don’t close deals. Due diligence does.

This episode breaks down a brutal truth: You don’t get the valuation you want; you get the one your business structure earns.

Here’s what we unpack:

1. Value isn’t just revenue. It’s risk-adjusted confidence. Buyers don’t just look at top-line growth. They dig into operational strength, governance quality, and founder dependency. If they find holes, they’ll apply a discount. Every risk they discover reduces the price you thought you’d get.

2. Weak governance = low trust = lower multiples. A founder-led business without a clear decision-making framework, accountability structure, or board discipline signals chaos. Buyers don’t want to fix your mess. They’ll just lower the price or walk away.

3. Key person risk kills value. If the business can’t run without you, it’s not a business. It’s a job with overhead. Buyers don’t acquire jobs. They acquire systems. If your name is stamped on every decision, expect the deal to shrink quickly.

4. Due diligence is where the real game is played. It’s not the pitch deck or the brand story that seals your exit. It’s what shows up when outsiders audit your ops. And most founders are underprepared.

The Real Lesson

Your company is worth what a buyer can operate, not what you can hustle.

This episode gives you the mindset and method to audit your business before someone else does. The best way to avoid a discount is to remove the reason for it.

Highlights:

00:00 Introduction: The Costly Mistake in Due Diligence

00:06 Identifying Governance Weaknesses

00:11 Understanding Risk and Discounts

00:16 Evaluating Your Business Discount

Links:

Website: https://www.marcogrueter.com/

LinkedIn: https://www.linkedin.com/in/marcogrueter/

Transcript: 

One founder lost 40% of exit value in the due diligence. Buyers found weak governance and dependency on the founder. The risks they equal the discounts. What discount would a buyer apply to your business?