Harsh truth: buyers don’t pay premiums for growth. They pay premiums for independence.

Eight out of ten founders think valuation is about revenue, margins, or momentum. Those matter, but they are not the multiplier.

Transferability is the ultimate valuation lever.

I’ve seen this from every angle: founder, seller, advisor, investor.

Two businesses can look identical on paper, but one sells at a premium and the other struggles to attract serious buyers. The difference is simple:

Can the business run, scale, and survive without the founder?

Why founder dependency compresses multiples.

From a buyer’s perspective, founder dependency equals risk.

And risk always compresses multiples.

Even if the business is profitable, if it depends on the founder to function, it’s not transferable. And if it’s not transferable, it’s not a true asset.

This is where most founders get it wrong. They think strong performance will override structural dependence.

It won’t.

What buyers quietly discount.

Buyers rarely say this directly, but they discount it every time:

Revenue tied to founder relationships.

Decisions flowing through one person.

Weak governance.

A leadership team that can’t operate independently.

These are not “small issues.” They are structural risks. And structural risks get priced in.

What buyers pay premiums for.

On the other side of the table, buyers pay up for clear signs of independence:

• Operational independence

• Clear governance

• Documented systems

• Leadership depth

• Clean handover logic

These signals reduce perceived risk. And when risk drops, multiples expand.

This is why transferability isn’t a later topic. It drives valuation today.

Why transferability multiplies valuation.

A transferable business does three things at once:

• It attracts more buyers

• It reduces perceived risk

• It expands exit options and increases multiples

This is what most founders miss: valuation is not only a function of performance. It’s a function of confidence.

If the buyer believes the business can keep performing without you, they pay a premium.

If they believe the business needs you to perform, they discount it.

Because then they’re not buying growth.

They’re buying a job.

And they won’t overpay for it.

Transferability is not about exiting tomorrow.

Transferability is not about exiting tomorrow.

It’s about building a business that gives you leverage, freedom, and optionality long before a sale.

That is how valuation is actually multiplied.

Highlights:

00:00 Understanding Valuation: The Harsh Truth

00:17 The Importance of Transferability

00:35 Buyer's Perspective on Founder Dependency

00:45 Common Mistakes by Founders

01:08 What Buyers Look for in a Business

01:26 The True Value of Transferability

01:45 Building a Transferable Business

Links:

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

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