How Employee Retention & Satisfaction Drive Business Value

By Dr. Aaron Mahl, EVP Business Development, iTValuations

Ask any business owner what keeps them up at night, and chances are “finding and keeping good people” is near the top of the list. At iTValuations, we’ve seen firsthand how employee satisfaction and retention aren’t just cultural priorities—they’re value drivers that materially impact the outcome of a business sale or acquisition.

In a recent webinar, I was joined by Greg Northrop, Managing Partner at IT Tax Advisors, and Ted White, Founder of Vertical Talent Solutions, to talk about how these “softer” factors directly influence a company’s marketability and transaction value.

Here are some of the key takeaways.

Employee Satisfaction: More Than a Feel-Good Metric

Culture fit is often a deal-breaker long before the due diligence begins. According to Greg, while employee satisfaction is a challenging metric to score, its impact on a transaction is undeniable. Buyers are increasingly sensitive to toxic or disjointed cultures—because they know that even the best financials can’t fix a poor team dynamic post-sale.

Ted shared that satisfaction often comes down to expectations and structure: “Companies think onboarding starts on day one, but it really starts the moment someone accepts the offer.” From setting expectations before a new hire begins, to having a clear 30/60/90-day plan in place, proactive communication is one of the strongest predictors of employee success—and satisfaction.

Employee Retention: A Red Flag or a Value Signal

High turnover doesn’t just hurt morale—it hurts valuation. Our valuation models at iTValuations track employee gains and losses quarterly to detect patterns. If a company is cycling through talent faster than peers, that volatility becomes a risk multiplier in any transaction.

But not all churn is bad. Sometimes, right-sizing a team or letting go of underperformers is the healthy (and necessary) thing to do. The key is being able to tell that story clearly and confidently to a buyer—especially when staffing changes intersect with key accounts or service delivery.

Always Be Recruiting (Even When You’re Not Hiring)

Ted emphasized a concept he calls “ABR”—Always Be Recruiting. “Interview when you don’t have to,” he said. “That way, when someone does leave, you’re not scrambling—you’re prepared.”

By maintaining a proactive pipeline of qualified candidates, MSPs can reduce time-to-fill and avoid reactionary hiring. The result? Lower burnout on the team, better-fit hires, and fewer business disruptions. Plus, a strong recruiting and retention engine is a signal to buyers that your business is resilient—not just lucky.

Why It All Matters for Your Exit Strategy

Employee satisfaction and retention aren’t always at the top of an M&A checklist—but they should be. If your team is disengaged or turnover is high, buyers will question your leadership, your culture, and your ability to scale. That means fewer interested acquirers, lower multiples, and more deal friction.

But if you can show strong employee engagement, thoughtful onboarding processes, and stable team tenure, it builds confidence—and enterprise value.

At iTValuations, we help business owners not only understand what their company is worth today but what could make it worth more tomorrow. If you’re curious how your employee metrics stack up—and how they impact your valuation—we’d love to show you through our Valuation-as-a-Service platform.

Interested in learning how to boost the value of your business?
Let’s talk. Whether you’re 2 years or 10 years from selling, the work you do today around team satisfaction and retention will pay dividends in the future.