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Business value

Depending on the buyer, there are two answers

There is no single number. What your business is worth depends entirely on who is looking at it and why.

Fair Market Value

What an informed buyer would be willing to pay in an “arm’s length” transaction in a competitive market, with neither party under duress.

The basic cash flow hurdles

The business has to clear all four, or the deal does not finance:

  • Service the debt
  • Pay the owner or manager
  • Yield a return on the down payment
  • Provide capital for depreciated or depleted assets
Strategic Value

Subjective value based on the degree of attractiveness to a specific buyer in the same or a related industry, value that stems from diversification, expansion and competitive scenarios.

What to expect

  • Both the criteria and the value vary significantly depending on the strategic buyer
  • Typically higher than Fair Market Value
  • Requires identifying and reaching the right acquirer, not simply listing

Finding the strategic buyer is where a brokered process earns its fee. A listing site produces fair market interest. A managed, confidential outreach programme produces the buyer for whom your business is worth more than it is to anyone else.

Broker Opinion of Value

Start with a defensible number

Sellers receive a complimentary Broker Opinion of Value where a listing agreement is entered into. It is built on recast earnings, comparable transactions and the specific risks a buyer will price in, not a rule of thumb from a trade show.

If a third-party valuation is required, we will tell you, and what it costs.

Request yours
Why do brokers quote a range, not a number?

Because the buyer determines the answer. A range reflects the gap between fair market and strategic interest, and it narrows as real offers arrive.

What lifts the number most?

Reducing owner dependency, cleaning up the financials, and demonstrating that key staff will stay. These are readiness issues, not price negotiations.

What quietly lowers it?

Customer concentration, deferred maintenance, informal record keeping, and an owner who is the only person who knows how anything works.

How early should I get one?

Twelve to twenty-four months before you intend to sell. That is the window where the findings can still change the outcome.