Strandberg: Why Your Story Drives Valuation

When most people think of mergers and acquisitions, they think about numbers. And they’re not wrong. Valuation is deeply tied to revenue, margins, growth and EBITDA. But if you stop there, you miss the real driver of premium outcomes.

I was recently asked about the most important skill to be effective as an investment banker or M&A advisor. My answer? It isn’t spreadsheets or slide decks. It’s something far more simple and far more powerful: be a great storyteller.

At its core, M&A is just as much about the story as it is about the financials. A great horse being ridden by a great jockey heading toward the promised land — that’s the business buyers are willing to pay top dollar for. Strong performance today matters, but it’s the vision for tomorrow that unlocks extraordinary multiples.

I’ve seen it firsthand. Businesses with similar financial profiles can sell at dramatically different valuations depending on how well their story positions them for the future. The differentiator is almost always leadership: the visionary who sees where the industry is headed and builds accordingly.

Visionary leaders aren’t fortune tellers, but they ask different questions. They constantly challenge the status quo with ideas like:

• “If I had unlimited runway and unlimited capital, what would I be doing with this business?”
• “What shifts are happening in my customers’ world that I can address before anyone else?”
• “How do I build something today that will still be relevant — and maybe even essential — 10 years from now?”

The best operators don’t just run their businesses. They architect the future. Some of the answers to these questions they can execute themselves. Others, they leave as “meat on the bone” for their future financial partner, making the story even more compelling to a buyer or investor.

Buyers don’t just buy financial statements. They buy trajectories. A business that looks poised to grow, adapt and thrive in a changing environment is far more attractive than one that’s standing still, even if the numbers are similar today.

That’s why you’ll see two businesses, both doing similar revenue with similar margins, sell at very different multiples. One is a good operator, managing day-to-day. The other is a great operator, building for the next era. Buyers will often stretch for the second one.

In other words, valuation isn’t just about what you’ve done. It’s about where you’re going. Buyers pay a premium to go along for that ride.

The good news? Visionary thinking is a skill that can be practiced.

Cultivating visionary thinking requires being intentional about how you approach your business. It starts with making time to think in future tense, stepping out of the day-to-day to ask where the industry is headed and how your company can align with it. Visionaries also look beyond their immediate niche. They're studying trends in adjacent industries and borrowing ideas that can be applied in fresh ways.

Surrounding yourself with forward-thinkers is equally important. Peer groups, 20 Groups and industry events often spark insights that wouldn’t surface within your own four walls.

Finally, it’s about balancing execution with aspiration. Not every idea has to be implemented today, but planting seeds now while leaving some upside visible for a future buyer can be a powerful way to build long-term value.

I’ve been fortunate to work with visionary leaders in the tire space and beyond. They’re not just growing. They’re redefining what their businesses can be. They’re redefining what their industry can be. And when they go to market, buyers notice.

Premium valuations don’t happen by accident. They’re the result of strong financials paired with a compelling story about the future. When those two align, you don’t just sell a business. You sell a vision. And that’s when you turn a good outcome into a life-changing one.

If you’re an operator thinking about your next chapter, start asking visionary questions today. Don’t just build for today. Build for the promised land. Buyers will see it and you’ll reap the rewards.