
What’s Your Business Really Worth? Discover the True Value Behind the Numbers
With over 20 years as a business broker, I’ve guided hundreds of entrepreneurs through the exciting yet complex journey of selling their businesses. One question always stands out: "What is my business actually worth?"
Business valuation goes beyond numbers and spreadsheets. It’s more art than science—a blend of proven methods, real-world market insight, and seasoned judgment.
If you're curious about your own business's value, you can also try our Business Valuation Calculator for a quick and confidential estimate.
Why I Trust the Market Approach to Valuation
When valuing a business, my go-to method is the Market Approach. Why? Because it’s grounded in real-world sales data from businesses similar to yours. It’s practical, accurate, and trusted by serious buyers and lenders.
Here’s why it works:
Imagine two restaurants for sale in the same city—one recently sold for three times its annual earnings, while a larger one sold for 2.5 times. By analyzing actual transactions and adjusting for factors like size, reputation, and location, the Market Approach ensures your valuation aligns with what today’s buyers are truly paying.
- Real-World Accuracy: Reflects genuine market conditions and buyer behavior.
- Objective Insights: Reduces guesswork, making your valuation credible to everyone involved.
When the Adjusted Net Asset Method Makes Sense
While the Market Approach is my preferred method, the Adjusted Net Asset Method provides important insights—especially for businesses that own significant assets or are not yet profitable:
- Clear Baseline: Establishes a minimum value based on tangible assets and liabilities.
- Transparency: Makes it easier for buyers and lenders to clearly understand the business’s worth.
Why Discounted Cash Flow (DCF) Isn’t Always Reliable
You might have heard of the Discounted Cash Flow (DCF) method. While popular, it’s highly subjective—relying heavily on assumptions about future earnings, growth rates, and market conditions.
Even slight changes in projections can significantly affect the final number. That’s why I favor valuation methods that stay firmly rooted in real market activity.
Business Valuation Is an Art—Guided by Science
Every business has a unique story.
For example, a neighborhood coffee shop with decades of loyal customers carries a different market appeal than a fast-growing tech startup. These intangibles can't be captured by numbers alone.
Accurate business valuation requires intuition, market knowledge, and an understanding of what buyers truly value. Numbers tell part of the story—the rest is experience, judgment, and insight into subtle market dynamics.
Ready to Discover What Your Business Is Worth?
Combining proven valuation methods with decades of hands-on experience, I can help you uncover your business’s true value—not just on paper, but in today’s real-world market.
Get a quick estimate now using our confidential Business Valuation Calculator, or reach out for a personalized consultation.
Let’s navigate this important journey together.
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