You Can’t Paint Over a Pipeline Problem

Hey, it’s David

Welcome back to M&A from the Plane where I share quick stories and insights drawn from the many miles I log in the air talking to business owners, founders, and dealmakers.

The Plane Looked Ready to Fly… Until It Wasn’t

The other day I boarded a plane with a totally redone interior, fresh lighting, clean upholstery, even the seatback screens were new.

Looked like a brand-new aircraft…

But about ten minutes after pushback, we rolled back to the gate.

Mechanical issue.

They had polished the cabin, but the engine still needed work.

It reminded me of a business we were recently referred to, one that looked ready to go to market, except it wasn’t.

When Financials Speak-Up

The owner was upbeat. The branding was sharp. They’d just relaunched the website;  mobile-optimized, new content, fast load times.

He was confident about valuation…  looking forward to selling and retiring.

But when we looked under the hood, things didn’t line up:

• Revenue was declining

• Inventory was rising as a percentage of sales

• Cash flow had slowed to a trickle

• Working capital was messy

• And the new website? It looked great, but it wasn’t driving any real increase in leads or sales activity

The refreshed brand gave the illusion of momentum.

But underneath, the fundamentals were slipping.

The owner was expecting a premium valuation. What we saw was a business that could command that price, but only after serious work to rebuild the value behind the scenes.

The Strategic Fork in the Runway

We see this a lot. Cosmetic improvements give leaders a false sense of momentum.

But a clean UX doesn’t replace a clean P&L.

So, here’s the decision point:

1. Walk away from a business that isn’t sell-ready.

2. Or roll up our sleeves and build a turnaround strategy to reclaim strong EBITDA.

In this case, the second option might be worth the work but only if the owner’s expectations are realigned and there’s a clear, disciplined roadmap ahead.

Final Thoughts

Just like in aviation, you can’t measure readiness by appearance. A shiny cabin doesn’t make a flight safe, and a refreshed brand doesn’t make a business sellable.

If you’re thinking about valuation, don’t start with the polish…

Start with the engine: the pipeline, the operations, the cash flow.

Want a clear-eyed view of where your business stands and how to rebuild enterprise value? Contact me as we can help you map it out.

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Thank you!

David