Ep 23. Why Your Business Isn’t Transferable (Yet) — Nick Bradley on the Metrics That Drive Exits

In this episode of Epic Execution, David Kenney sits down with Nick Bradley (author of Exit for Millions and a long-time private equity operator) to unpack what founders routinely miss about building a business that’s actually sellable. Nick explains the two metrics PE cares about (MOIC and IRR), why profitability is still the north star in PE thinking, and how the “cost of capital” era changes what’s fundable. They also dig into what “defensibility” really means through a PE lens (risk reduction + transferability), why key-person risk goes far beyond the founder, and why scaling too early breaks the company.Key Takeaways:"PE only plays two games: MOIC + IRR."Private equity evaluates deals through two lenses: multiple on invested capital (turn $1 into $3–$5) and internal rate of return (how fast they do it). Everything else ladders up to those scorecards. “Profitability isn’t a nice-to-have. In PE, it’s the starting line.”Nick contrasts PE with venture: PE isn’t “spread betting.” It prefers fewer, profitable businesses it can scale with precision, and it’s wary of long or unclear paths to sustainability. “Defensibility = risk reduction + transferability.”He frames defensibility as the business’s ability to keep cash flowing with predictability and sustainability, while also being transferable to a buyer without fragile dependencies (like a few customers or a single key operator).___________________________________________________________Epic Execution is the definitive podcast for entrepreneurs, executives, and innovators seeking to build companies, raise capital, and deploy it effectively. Our central themes are team selection and leadership, validating your way to Product Market Fit, and creating genuine customer value and enduring engagement.Hosted by David Kenney, we bring you unfiltered conversations with people who have built extraordinary companies from the ground up. We dive deep, asking the hard-hitting questions that unlock the secrets behind explosive growth, effective team leadership, strategic capital management, and groundbreaking product development. Each episode features actionable insights and strategies designed to maximise your business potential.Check out Epic Execution for more!