Andrew GazdeckiSerial Entrepreneur Driving Startup Acquisitions

Why profitability is key in startup acquisitions for agencies

4 Dec 2024

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This is a YouTube video titled "Why profitability is key in startup acquisitions for agencies" containing a discussion between two speakers about the importance of profitability when buyers evaluate businesses for acquisition. The conversation focuses on how profitability signals well-run operations and advises sellers to improve profit margins before going to market. The content is from December 2024 and centers on startup acquisition strategy.

Profitability matters. I would say all buyers are looking at profitability.
But, yeah, profit, profits are king. You know, buyers more than ever, especially today, are looking at the profitability almost first when they're evaluating different businesses. If a business is really profitable, it's also a great sign of it's really well ran and they have their operations down. So it's massive.
Yeah. And what could you say to perhaps a seller that doesn't have the best profit margins, but they are expecting a buyer to view the acquisition? Strategically, I.
Would say it's just that, you know, it's a hypothetical. It's possible, but it's unlikely. So typically, if you have an opportunity to take a business to market and you can make it profitable beforehand by reducing expenses or increasing revenue, I strongly recommend doing that.