Cash flow is only the start
Buyers care about how reliable the cash flow is after the current owner steps back.
Systems reduce risk
Documented process, team leadership, repeat customers, and clean handoffs can make earnings easier to trust.
Bad books reduce confidence
If a buyer cannot trust the numbers, they discount the business or walk away.
Field note
Buyers are allergic to mystery
A service business becomes easier to value when earnings are explainable, customers are not overly concentrated, team roles are clear, and the company can run without the owner touching every decision.
The number matters, but the story behind the number is what gets challenged.
Do not guess from the symptom
The symptom may be cash stress, tax pain, low profit, or exit anxiety. The cause is usually deeper in the operating rhythm.