In reviewing KPMG’s recent study, “Private Market Investment Priorities,” I was struck by how relevant the findings are, not only for the M&A world, where companies typically generate $ 5 million or more in EBITDA, but also for businesses of every size.
The study reinforces a major shift that’s been happening across private markets: the factors that drive business value are evolving. And the companies that recognize this shift early are the ones best positioned to grow, compete, and eventually sell at a premium.
1. Governance, Cybersecurity & Sustainability Are Becoming Non-Negotiable
What once felt like “big company concerns” are now essential priorities for investors evaluating mid-market and small businesses.
According to the KPMG report, investors are increasingly focused on:
- Strong governance practices
- Cybersecurity maturity
- Environmental and social responsibility
- Ethical standards and transparency
This reflects a broader mindset change: resilient, well-run companies perform better, financially and operationally. Investors understand this, and their due diligence now reflects it.
2. Financials Still Matter, But Non-Financial Strength Now Drives Confidence
There’s no minimizing the importance of revenue, margins, and ROI. Those remain the top considerations. But the study shows that non-financial indicators are now powerful drivers of investor confidence, especially in competitive markets.
These include:
- Operational excellence
- Unique value proposition
- Technology capabilities and innovation pipeline
- Culture, leadership, and scalability
Companies that invest in these areas early tend to see stronger, more sustainable growth long-term.
3. What Different Investor Types Are Prioritizing
KPMG highlighted several notable distinctions:
- 63% of private equity investors are focused on pricing and profitability
- 56% of venture capital firms care most about a company’s unique value proposition
- 56% of asset managers evaluate technological capabilities and innovation
This sends a clear message: value creation is not one-dimensional. Each investor type is looking at a different part of the story, but all are aiming to understand how a business will remain competitive and durable into the future.
4. My Biggest Takeaway: Your Company’s Value Is Built Every Day
The value of a business isn’t determined only by last quarter’s financial performance. It’s shaped by:
- How well the business operates
- The systems and processes behind the scenes
- The culture and leadership
- The distinctive, non-financial strengths that set the enterprise apart
Short-term revenue boosts are helpful, but long-term value is built through discipline, governance, operational strength, and strategic planning.
A business becomes “worth selling” only when the foundation is strong.
5. Where I Focus: The “One Plan” Approach for Business Owners
Your personal financial plan and your business plan are deeply interconnected, yet most owners manage them separately. I take a different approach.
My work centers on a formal personal financial planning process that integrates directly with business planning. This “one plan” philosophy ensures that:
- Your business decisions align with your long-term goals
- Risk is managed thoughtfully
- Value is built deliberately, not accidentally
- You’re prepared for transition, succession, or sale when the time comes
This alignment is a major differentiator for owners who want sustainable growth and long-term value.
Ready to Explore How This Applies to Your Business?
If these insights resonate, I’d welcome a conversation. Whether you’re thinking about long-term value, preparing for a future sale, or simply aiming to run a stronger business, adopting an integrated planning process can make all the difference.
