Why Getting Your People Strategy Right Can Add Serious Value Before You Sell

When preparing a company for sale, most owners instinctively focus on the financials. That’s fair — revenue, EBITDA, and customer contracts are critical. But if you're hoping to attract interest (and premium offers) from large corporate buyers, there's another area that deserves serious attention; your people.

In the world of M&A, especially when selling to large, well-structured organizations, your HR function isn’t just an internal admin service. It’s a window into the health, scalability, and long-term viability of your business. And if that window’s fogged up or cracked? Buyers will notice it straight away.

Here’s the good news: polishing your HR function doesn’t mean a massive investment. It’s about tightening up key areas that send strong signals of maturity, stability, and readiness to scale. Let’s look at what matters — and what makes buyers sit up straighter in their chairs.

1. Organizational Clarity and Accountability

One of the first things a corporate buyer will look for is whether your company has a clearly defined organizational structure. Not just a list of job titles, but real clarity around roles, reporting lines, and accountability.

If responsibilities are vague, or if multiple hats are being worn without clear prioritization, that’s a red flag. Buyers start asking: “Who’s really running this business?” or “How hard will it be to integrate this team?”

What to do to fix this:

  • Create (or refine) your org chart.

  • Make sure every role has a defined job description.

  • Identify succession gaps — and, if you can, have a plan for them.

2. Performance Management That Actually Works

In a lot of smaller companies, performance management is informal at best. Maybe there are some one-to-ones, maybe an annual review — maybe not.

But corporate buyers are looking for evidence that your team is aligned, engaged, and measured. A strong performance culture signals discipline. It also helps reduce post-acquisition risk.

What to do to fix this:

  • Implement lightweight but consistent performance reviews.

  • Make sure KPIs are linked to business goals — and that they’re actually being tracked.

  • Possibly, consider short-term incentive plans to retain key talent through and after the transaction.

3. Culture: Make It Real, Not Fluffy

Corporate buyers aren’t just buying systems and cash flow. They’re buying people — and they want to know those people will stick around, thrive, and deliver.

That’s why culture matters. And not just values-on-a-wall kind of culture — but practical, lived behaviors. How decisions get made. How people collaborate. How change is handled.

If you can articulate your culture in a way that feels authentic, you’ll stand out. Especially if you can show that it supports performance and engagement.

What to do to fix this:

  • Define your culture in plain language.

  • Capture employee feedback — even informally.

  • Highlight how your culture drives results, not just a good natured environment.

4. Compliance and Risk? Button It Down

Here’s where things can unravel fast. If your employment contracts are inconsistent, if you’ve got lingering disputes, or if you’re operating in multiple countries without a grip on labor laws — buyers will get nervous.

Corporate acquirers have legal and compliance teams for a reason. If they spot loose ends, they won’t just ask questions — they’ll discount their offer, or stall the deal.

What to do to fix this:

  • Standardize employment contracts and HR policies.

  • Make sure documentation is in order (contracts, NDAs, handbooks).

  • If you’re in multiple jurisdictions, get expert help to ensure compliance.

 

5. Scalability: Can This Team Grow with the Business?

Finally, buyers want to know: if we invest, will this team scale? Or will we need to rebuild?

A strong HR function helps answer that. It shows you’ve got hiring processes that work, a clear employer brand, and onboarding that ramps people up quickly. It also shows you’re thinking ahead — not just plugging holes.

What to do to fix this:

  • Have a clear talent acquisition process.

  • Showcase your recent hires and how they’ve integrated.

  • Build a simple workforce plan tied to growth projections.

The Bottom Line

If you’re thinking about selling, polishing your HR function might not seem like the most urgent priority. But it’s one of those “quiet value” levers that can make a real difference — not just in the offers you receive, but in how quickly and smoothly the deal progresses.

Corporate buyers are looking for more than EBITDA. They’re looking for confidence. And nothing builds confidence like a well-run, clearly aligned, and people-first business.

You’ve built a great company. Let’s make sure your team looks as good on paper as they are in person.