Most business owners have never had a proper valuation from someone who actually sells businesses. A real valuation tells you what buyers would actually pay, and that number is useful whether the answer is good or bad.
Most owners have a rough idea of what their business is worth. They talk to their accountant, look at what similar businesses sold for, or just go with a gut feel. None of those are the same thing as having someone who sells businesses every day put a proper number on it. After more than 20 years experience in business valuations, the gap between what an owner thinks their business is worth and what a buyer would actually pay is usually wider than people expect.
The reason it matters is that the number drives every decision that follows. If you’re thinking about selling in the next few years, the valuation tells you whether your plans are realistic. If you’re not thinking about selling, it still tells you what your business is worth today, which is useful information for insurance, succession planning, or just knowing where you stand. Australia’s leading business valuations firm gets asked to do valuations for owners who’ve been running their business for ten or twenty years and have genuinely never had one done by someone who works in the market.
Here’s what I’d do:
- Get a proper valuation from someone who actually sells businesses in your sector. It’s the only way to know what a buyer would pay.
- Be ready for the number to be different from what you expected. A bad shock is better found out now than at sale time, and a good shock is a useful piece of information.
- Use the valuation as a planning tool, whether or not you sell. It shapes decisions about profit, staffing, and timing.
Have you ever had your business valued by someone that actually sells them? Would you rather know the real number now, or find out at sale time?
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