Positioning Your Business for a More Profitable Exit

Positioning Your Business for a More Profitable Exit

Welcome to The Path Weekly! If you’re new here, join the thousands of subscribers who receive valuable business insights and actionable advice each and every week from hundreds of industry leaders! Click here to subscribe on Substack!


Most business owners who dream of selling their company focus almost exclusively on valuation—how much is my business worth? But the hard truth is that valuation is only one part of the equation. What truly determines whether a business is desirable and whether the deal terms are favorable often comes down to?positioning—the way the company is structured, branded, and perceived in the market.

Jonathan Baker , partner at Punctuation, an advisory and M&A firm, has spent years helping companies prepare for sale. His work is deeply influenced by the expertise of his father, David C. Baker, a well-known authority on positioning and value-based pricing. While Jonathan focuses on guiding businesses through the M&A process, much of what makes a business sellable at a premium comes from the strategic groundwork laid long before negotiations begin.

Positioning isn’t just about branding—it’s about making a business more specialized, efficient, and attractive to buyers. A company that tries to serve everyone often ends up appealing to no one. Buyers are drawn to firms with a clear niche, a well-defined service offering, and a strong reputation in a specific market. This is why M&A isn’t just about spreadsheets and financials—it’s about storytelling and strategy.

The businesses that command the highest multiples are those that?own a category, dominate a niche, or provide something difficult to replicate. This goes beyond just financial performance—it’s about the?intellectual property, brand authority, and operational efficiency?that make a company an attractive acquisition target. Many business owners struggle because they spend years?running the business?but never step back to consider?how it is positioned for sale.

In the dynamic landscape of marketing and creative services, firms often reach pivotal moments that necessitate a strategic reevaluation. Recognizing the need for a comprehensive approach to such transitions, Punctuation offers what they call the Total Business Reset (TBR), a service designed to holistically assess and revitalize firms ahead of a sale.

The TBR process encompasses six meticulously structured modules:

  1. Performance Benchmarking: Evaluating current metrics to identify areas of strength and opportunities for improvement.
  2. Positioning: Crafting a unique and defensible market position to differentiate the firm.
  3. Service Offerings: Designing services that align with the firm's positioning and meet market demands.
  4. Lead Generation: Developing strategies to attract and retain ideal clients.
  5. Structuring Roles: Assessing and optimizing team roles to ensure efficiency and effectiveness.
  6. Future Proofing: Planning for sustainable growth, potential acquisitions, or preparing for sale.

This comprehensive approach ensures that firms not only address immediate challenges but also lay the groundwork for long-term success.

In our recent conversation on Eggs! The Podcast?with?Jonathan Baker, Practice Lead for M&A at Punctuation, we delved into the intricacies of the TBR process and its impact on firms navigating critical transitions as well as a broader discussion about positioning your business for sale or success.


The Strategic Edge: Positioning for Maximum Value in M&A with Jonathan Baker


Image courtesy Jonathan Baker

Jonathan Baker, a partner at Punctuation, specializes in guiding marketing and creative firms through mergers and acquisitions (M&A). His expertise, honed through firsthand experience with his own brewery business and years of consulting, highlights a fundamental truth: positioning is everything. In our discussion, Jonathan shared that buyers aren’t looking for another generalist agency—they want something they can’t easily build themselves.

“A small, tightly positioned firm is far more attractive than a generalist one,” Baker explains. “The key is to own a deep expertise or access to a specific client vertical that potential buyers don’t already have.” This insight is critical for business owners who assume that being a “catch-all” for any type of work makes them more valuable. In reality, firms that lack a defined niche often struggle to secure premium offers.

Beyond positioning, Jonathan emphasized that M&A is more about relationships and strategy than simply crunching numbers. “It’s a process that’s highly emotional for sellers,” he says. “There’s always a moment where things feel like they’re going to fall apart. Our job is to guide them through that.” Understanding not just the financial side, but also the human and strategic elements of M&A, is essential for any business looking to make an eventual sale.

In our conversation, Jonathan outlined several key takeaways for firms looking to position themselves for a successful sale:

Positioning is the Foundation of a Strong Sale

“If you have a small, tightly positioned firm, your pool of buyers may be smaller—but they’ll be willing to pay a premium.”

The insight: Businesses that specialize in a well-defined niche are more attractive to buyers because they offer unique expertise or client access that can’t be easily replicated. If you’re positioning yourself as a generalist, consider gradually narrowing your focus to create more value.

Understand Buyer Motivations to Secure Better Terms

“Understanding the buyer’s motivation is just as important as understanding your own value. Are they looking to expand into a new market? Acquire a specific capability? That changes how you frame your business.”

The insight: Not all buyers are looking for the same thing. Some prioritize client relationships, while others want specific expertise. Knowing what your potential buyers want allows you to present your firm in the most appealing light.

Emotional Attachment Can Cloud Judgment

“Usually, people who are that in love with their business aren’t actually trying to sell.”

The insight: Business owners often overestimate their company’s value because of emotional attachment. Getting an objective valuation early and being prepared for tough conversations can help ensure realistic expectations in the M&A process.

Valuation Isn’t Just About the Number—It’s About the Terms

“The valuation is just a point-in-time measurement, but the terms of the deal—like how much is paid upfront versus an earnout—can be more important.”

The?insight:?A high valuation doesn’t necessarily mean a great deal. To ensure a beneficial outcome, sellers should focus on the structure of payments, contingencies, and their role post-sale.

Diversify Your Client Base Before Selling

“If one client makes up 75% of your revenue, that’s a huge risk to a buyer. If they leave, what’s left?”

The insight: Businesses with a diversified client base are more attractive to buyers because they present lower financial risk. If a few clients dominate your revenue, it’s worth working toward spreading that revenue across multiple accounts.

Benchmarking Helps You Measure and Improve Sale Readiness

“One of the first things we do is an in-depth benchmarking exercise—looking at financials, processes, and team structures—to determine how a firm compares to its peers.”

The insight: Understanding how your firm performs relative to others in your industry can highlight areas for improvement before going to market. Strong operational efficiency translates into better sale outcomes.

Every Business is Sellable—But Not Every Sale is Easy

“Every business is sellable if you can find the right buyer. The challenge is finding a fit where both sides feel like they’re winning.”

The insight: If your business isn’t attracting buyers, the issue may not be that it’s unsellable—it may be that you need to adjust your expectations or rethink your positioning.


Positioning is so much more than just branding. It’s about making strategic choices that set your business up for long-term success, whether you plan to sell in five years or simply want a stronger foundation. As Jonathan Baker’s experience shows, a well-positioned firm isn’t just easier to sell; it’s also more profitable and enjoyable to run.

If you’re considering an eventual sale, now is the time to think about your positioning. What do you offer that no one else can? What kind of buyer would find your business indispensable? Answering these questions today can set you up for a far more lucrative exit down the road.

Until next time,

—Ryan


If you were forwarded this post and would like to receive my next piece in your inbox, click here to subscribe on Substack!


Ready for more?

Catch Jonathan Baker’s interview in its entirety on Eggs! The Podcast.

Don’t miss a show! Subscribe on Spotify, Apple Podcasts, or really anywhere great podcasts are found.


Path Picks

Cool stuff to help you forge your path to greatness.

Note: The Path Weekly is reader-supported. As such, I may be using affiliate links below. If you want to support the newsletter at no additional cost to you, please consider using the links below. If you’d rather not, most items below are widely available anywhere you want to shop. Thanks! –R

Reading list

Want to learn more about developing and applying grit and resilience? Here are some great books that will help you forge your path.

  1. "The Business of Expertise" – David C. Baker: A must-read on positioning, specialization, and becoming an authority in your field. This aligns directly with the conversation about making a business more valuable and sellable.
  2. "Managing Right for the First Time" – David C. Baker: This book helps agency owners navigate leadership, structure, and decision-making—key elements in making a firm more attractive to buyers.
  3. "Built to Sell: Creating a Business That Can Thrive Without You" – John Warrillow: This book covers many of the principles Jonathan Baker discusses in the interview, including structuring your business to be sellable and not overly dependent on the owner.
  4. "The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It" – Michael E. Gerber: A foundational book on turning a small business into a scalable, sellable system—a key theme in Punctuation’s advisory approach.
  5. "Good to Great: Why Some Companies Make the Leap… and Others Don’t" – Jim Collins: This book provides insights into what makes certain companies excel, including how to position a business for long-term success.
  6. "Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game" – Walker Deibel: Covers the process of acquiring and growing a business, complementing Jonathan’s M&A insights.
  7. "The Exit Strategy Handbook" – Jerry L. Mills: A practical guide to selling a business with a focus on financials, valuation, and deal structuring.


More to explore

Website: https://punctuation.com LinkedIn Page: https://www.dhirubhai.net/in/jonathandavidbaker/


Work with me

Ryan Roghaar - Fractional CMO/Creative Director/Art Director: https://rogha.ar/portfolio R2 - Creative Services for Agencies and SMBs: https://www.r2mg.com

Eggs! The Podcast: https://www.eggscast.com

Would you like a personal introduction to any of the incredible leaders featured in The Path Weekly to explore business or other collaborative opportunities? Contact me here to learn more about my B2B matchmaking service.


Get featured

Do you want to be featured in a future edition of The Path Weekly? Contact me to learn more.


Thanks for reading The Path Weekly! If you liked what you read, or found it added value to your day, why don’t you share it?

要查看或添加评论,请登录

Ryan Roghaar的更多文章