What Is My Business Worth?

Begin with sustainable earnings

Revenue does not tell a buyer what remains after the business pays its costs. Establish a reliable earnings picture before debating a multiple. Explain the owner’s duties, compensation, related-party charges and capital needs so an interested buyer can assess a realistic operating model.

Support every adjustment

An expense is not an add-back merely because an owner would prefer to exclude it. Identify the specific item, the underlying record, why it may not recur and whether a buyer will need a replacement expense. Unsupported adjustments can weaken confidence in the entire presentation.

Separate value from transaction structure

A headline price with substantial seller financing, conditional payments or a large working-capital contribution can differ sharply from an all-cash offer. Compare the amount, timing and uncertainty of proceeds alongside the obligations retained by the seller.

Assess transferability

Repeat customers, employees who can run the operation, documented procedures and assignable relationships can support a buyer’s confidence. Customer concentration, a short lease, deferred maintenance or founder dependence may increase perceived risk. The strength of each factor needs evidence.

Use market evidence carefully

Comparable transactions can inform a discussion when their scale, industry, earnings definition and terms are sufficiently similar. An online asking price is not proof of a completed sale. We do not promise a valuation multiple or use an instant calculator as a substitute for reviewing the actual business.

Know when a formal valuation is needed

Tax planning, litigation, shareholder matters and certain financing needs may require a formal valuation from an appropriately qualified professional. Our business-sale preparation and market-positioning discussions do not replace an independent appraisal, legal opinion or tax advice.

Related resources

Seller checklist · The sale process · Our role and licensed partners