What Acquirers Look for in Your Supply Chain (Before They Cut Your Valuation)

The Calm Before Due Diligence

When founders think about exits, they picture revenue multiples, brand equity, and storytelling.

Acquirers picture something else: risk.

The truth is, most valuation cuts don’t come from missed forecasts or weak marketing.

They come from broken supply chains—contracts, data, and decision-making that don’t hold up under scrutiny.

1. Contracts and Manufacturing Quality

The first thing an acquirer looks for is control.

• Are your manufacturing contracts current, assignable, and clear on performance?
• Are quality standards written down—or just implied?
• Are your lead times and defect rates consistent across suppliers?

A five-year manufacturing agreement signals stability.

A three-month rolling contract signals risk.

2. Data Integrity and Visibility

If your inventory numbers live in a Google Sheet, you’re already behind.

Acquirers want to see clean data—forecasts, inventory, service levels—flowing through a single system of record.

It’s not just about accuracy. It’s about demonstrating that you can see your business clearly.

3. Founder Dependency

If every PO runs through the founder, the business isn’t scalable—it’s fragile.

Acquirers will assume that once the founder leaves, the system collapses.

That’s why delegation, documented SOPs, and automation aren’t “nice to haves.” They’re valuation insurance.

The Fix

Start preparing 12–24 months before your intended exit.

Build contracts, data discipline, and autonomy now—before someone else finds your weak spots.

"When acquirers go to market, our goal is simple: make sure they buy our client’s company, not the competitor’s."

- Aaron Alpeter, Izba Founder