8. The hidden value buyers are looking for.

The Hidden Value Buyers Will Look For

When Dave first started preparing for exit, he focused on what he thought mattered most—financial performance, plant efficiency and profitability. But as the process progressed, John and the team at RegenerationHQ helped him see something he had overlooked. Buyers were not just looking at the numbers. They were looking at everything behind the numbers.

The systems. The people. The culture. The loyalty of customers and the capability of the team. These things were harder to quantify, but they played a huge role in how much the business was really worth—and how easy it would be to transition.

Where did Dave start?

Dave ran a tight ship. He knew his team well, and most had been with him for years. Customers trusted him, and suppliers gave him priority treatment. But he had never looked at those relationships through the lens of value. He assumed they were a given. It never occurred to him that a buyer might see them as a risk if everything depended on him.

What is the problem we are working on?

The problem was owner dependency. Many of the business’s strongest assets—customer trust, staff loyalty, supplier arrangements—were tied to Dave personally. If Dave left, would those things stay intact? Buyers needed to believe the value would continue after the handover. That meant finding a way to shift those relationships from Dave to the business itself.

What are the options we can explore?

Dave could wait and hope a buyer saw the potential and kept him involved during the transition. Or he could start now, with help from RegenerationHQ, to reduce his personal footprint in the business, reinforce key relationships and strengthen the leadership team’s visibility and authority.

What reflective questions should Dave be considering about this part of the journey?

• If I stepped away tomorrow, what would stay the same and what would fall over?

• Are key customers loyal to the business or to me personally?

• Can my senior team lead without me in the room?

• Have I built a culture that people want to stay in, even when I am not there?

• What do buyers see when they meet my team?

What decision has Dave made?

Dave committed to shifting relationship ownership across the business. He started stepping back from key customer interactions, bringing senior staff into meetings and encouraging direct contact between clients and the broader team. He also increased the visibility of team leaders internally and externally, positioning them as decision-makers in their own right.

Why did he make that choice?

Dave wanted to make it easy for a buyer to step in with confidence. He knew that the more value could be attributed to the business rather than to him, the stronger the deal would be. It also gave him peace of mind. He did not want to feel like he had to stay on just to keep things from falling apart.

What are the implications for the rest of the journey?

By reducing reliance on himself, Dave made the business more resilient. Customers became comfortable dealing with his team. Staff became more confident making decisions without him. It also opened the door to a smoother transition, with fewer questions about whether the business could run without its founder at the helm.

What is HR best practice?

From an HR perspective, this stage is about succession planning, leadership development and cultural clarity. That means ensuring roles are well defined, leaders are empowered and the business can attract and retain talent beyond the founder. A strong team signals a strong future.

What is the psychological perspective?

This part of the journey often challenges an owner’s sense of identity. Letting go of key relationships can feel like giving away control or status. But it is also a sign of maturity. Dave found that as he stepped back, he gained more clarity, not less. It helped him begin to detach emotionally while still supporting the business.

What are the red flags to be watched out for and how can they be eliminated or mitigated?

Red flags include holding on to key relationships too tightly, failing to promote internal leaders or ignoring signs of staff disengagement. These risks can be reduced by gradually shifting ownership of roles, creating clear plans for leadership development and reinforcing a culture that values shared responsibility.

What has been the immediate effect on the business of taking this action?

Customers responded well. They appreciated the broader access to support and saw it as a sign of strength. Staff engagement lifted, and internal communication improved. Dave noticed that the business ran more smoothly when he was away. That gave him confidence he had made the right call.

Golden nugget of wisdom

Value is not just what you have built. It is what can thrive without you.

Talk to us about your exit journey. www.regenerationhq.co.nz/contact