Positioning Your Business for a More Profitable Exit
Ryan Roghaar
Brand relationship consultant | Web3 Executive | Creative Director | Marketer | Podcaster | YouTube Personality | Remote work advocate | Author | Artist
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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:
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
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
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