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Top 5 Traits Buyers are Looking for in 2026
- Jason Huett
- 5 days ago
- 4 min read
Deciding to sell your business is a major decision, and understanding what buyers value most in 2026 can help you maximize your sale price and streamline the process.
Below, we break down the five most sought-after traits that buyers are prioritizing this year — based on market data, buyer surveys, and most importantly, our personal experience with real buyers over the past 12 months.
1. Upward Revenue Trajectory
Why It Matters
Buyers want proof that your business is growing, not stagnating or declining. Consistent year-over-year revenue increases signal that the business is healthy and positioned for future success. A strong upward trajectory also helps justify a premium valuation and attracts more serious, well-funded buyers.
What if Your Business Lacks this Trend?
Not to worry, life isn't perfect and life operating a business is even less perfect. If you have a down year (or even more than one), it's important to work with your business broker to carefully craft the narrative.
Why did revenue take a hit? Often, buyers are willing to hear you out if you've taken the time to understand what caused the downward blip or trend. Be ready to provide documentation (e.g. sales reports or marketing data) to help buyers understand the cause.
2. Strong Cash Flow
Why It Matters
Cash Flow, or Seller Discretionary Earnings (SDE) is a key metric for small and mid-sized businesses, showing the true earning power of your business. Buyers want to see robust, predictable cash flow that can support debt service, reinvestment, and a reasonable return on investment.
How to Demonstrate
Your business broker will help prepare a clear, defensible SDE calculation. It's important to note that every business broker will calculate SDE differently. And, to make matters even more complex, your accountant and financial advisor will have thoughts of their own on this topic.
Remember this: SDE requires professional judgement and a strong understanding of human psychology. I know brokers who add every last cent back in the form of Add-backs and this is problematic. If this all sounds confusing, I would recommend reading our article on this topic: Seller Discretionary Earnings.
SDE SIDENOTE:
Seller Discretionary Earning's purpose is to illustrate to buyers the total financial benefit an owner receives from a business. In our opinion, that does not mean every personal expense you took will get added back. Remember, every Add-back will either build or erode trust with a buyer.
3. Clean Accounting and Tax Records
Why It Matters
Messy books are a deal killer. Accurate, up-to-date accounting and tax records inspire confidence and make due diligence smoother. Buyers (and their lenders) want to see that your numbers are reliable and your business is compliant.
How to Demonstrate
Use reputable accounting software and a professional bookkeeper and/or accountant
Keep tax filings current and organized
Be ready to provide 3+ years of financials
LOCAL ACCOUNTING RESOURCES
If you're located in southern Wisconsin where I am, I highly recommend the firms below — they do a great job:
4. Strong Staffing
Why It Matters
A business is only as good as its team. Buyers look for stable, skilled staff who can keep the business running smoothly post-sale. High turnover or heavy owner dependence are red flags.
In addition, (and very critical) is the payroll expense found on your P&L. Often, owners try and minimize this expense. However, astute buyers will compare your payroll expense to the industry average. Businesses that have exceptionally low payroll raise flags. Buyers know that qualified, strong staff comes at a cost and expect to see a reasonable amount of payroll expense on the P&L.
How to Demonstrate
Document staff tenure, roles, and responsibilities
Highlight key employees and their contributions
Have employment agreements and training materials ready
5. Operational Scalability and Process Documentation
Why It Matters
In 2026, buyers are laser-focused on businesses that can grow without hitting operational roadblocks. Well-documented processes, scalable systems, and clear SOPs (Standard Operating Procedures) make your business more attractive and lower perceived risk.
How to Demonstrate
Provide process manuals, checklists, and workflow charts
Show examples of how your business has scaled (new locations, product lines, etc.)
Highlight investments in technology and automation
PRO TIP
Most owners do not have operations processes, let alone an Operations Manual. If you don't have this material, follow these steps — in less than an hour you will have what a buyer would find extremely valuable:
Step 1: Open up your phone and hit the "record voice memo" button.
Step 2: Speak openly about all of the processes you can think of in your business: sales and marketing, bookkeeping and accounting, human resources, and any other area that you've dealt with.
Step 3: Upload the voice recording to ChatGPT, Claude, Gemini or one of the other platforms. Ask AI to create an Operations Manual for you and in minutes you will be ahead of most other business owners.
A business with these five traits is positioned to stand out in a competitive market. If you’re thinking about selling, start strengthening these areas now to attract the best buyers — and, command the highest price.
To your success,
Jason Huett
CEO | Business Broker
Why wait any longer? Schedule time with us here and take the next step towards finding the right buyer for your business!