When most business owners start thinking about selling, they get starry-eyed over revenue numbers. I get it—big top-line figures look fantastic on paper, and it’s tempting to believe they’ll guarantee a knockout offer. But here’s the thing I’ve learned after years in the trenches: buyers aren’t nearly as impressed by revenue as they are by EBITDA.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is like an X-ray for your business—it shows the real health of your profits, stripped of all the financial fluff. Today, we’re diving into why EBITDA is the number buyers obsess over, how to beef it up before you sell, and what happens if you ignore it.
Revenue’s Dirty Little Secret
We’ve all been to those networking events where everyone brags about their revenue growth. But here’s the truth: revenue is the flashy sports car that might hide a rusty engine. Let me paint a picture:
Imagine two businesses. One generates impressive top-line sales but operates on razor-thin margins. The other brings in less revenue but keeps significantly more profit thanks to lean operations. Guess which one buyers fight over? The second one, every time. Why? Because buyers aren’t buying your revenue—they’re buying your profit. Think of EBITDA as the cash that actually stays in your pocket after the dust settles.
EBITDA: The Magic Number Buyers Can’t Resist
Here’s how valuation really works: Buyers take your EBITDA and multiply it by an industry-specific multiple. The higher your EBITDA, the bigger your paycheck—even if your revenue hasn’t budged in years.
Bottom line? EBITDA is the ultimate BS detector. Clean, consistent EBITDA tells buyers you’re running a tight ship. Revenue swings or shrinking margins? That’s a red flag that’ll have them slashing offers faster than you can say “due diligence.”
How to Pump Up Your EBITDA (Before Buyers Come Knocking)
Want to make your business irresistible? Here’s your playbook:
1. Trim the Fat
Buyers will pick apart every expense. Ditch redundant tools, renegotiate with suppliers, and stop throwing money at underperforming strategies. Pro tip: If you haven’t audited your expenses lately, you’re probably leaking cash.
2. Charge What You’re Worth
Stop racing to the bottom on price. If you’ve got better service, smarter tech, or niche expertise—own it. A strategic price hike could boost your margins overnight if your customers stick around (and the right ones will).
3. Lock In Recurring Revenue
Nothing makes buyers happier than predictable income. Subscription models, annual contracts, or retainer agreements turn your revenue into a “set it and forget it” machine.
4. Make Yourself Replaceable
Harsh truth: If you’re the glue holding everything together, buyers will discount your value. Start documenting processes, training leaders, and stepping back from daily firefighting.
The High Cost of Ignoring EBITDA
Skipping these steps? Brace yourself for:
Lowball Offers: A business with flashy revenue but weak margins might sell for far less than you’d expect.
Endless Negotiations: Low-margin businesses attract bargain hunters, not serious buyers.
Post-Sale Headaches: If profits tank after the sale? You could be dealing with legal headaches.
The Bottom Line
Revenue’s fun to talk about at cocktail parties, but EBITDA pays the bills—literally. The best part? You don’t need to wait until you’re ready to sell. Start today:
Audit your finances (yes, actually look at those P&L statements).
Kill unnecessary costs.
Build a business that runs without you. Hello EOS !!
Do this, and EBITDA stops being an accounting term—it becomes your golden ticket to a life-changing exit.
Your Next Move
Ready to turn your business into a buyer’s dream? Reach out for a free EBITDA gut check and personalized strategies to max out your sale price.
About Heather Griffith Barber
Heather Griffith Barber founded Queen of Wraps at 23 years old. She scaled it into a regional powerhouse and had a successful exit in Dec 2024. Her book, That’s a Wrap: Strategies for Anchoring and Achieving Your Goals from the Queen was released in March 2025. She has now dedicated the next 5 years to assisting 100 other business owners in creating life chaning wealth through successful exits.