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Email: info@BusinessWanted.com
What Is My Business Really Worth?
Almost every business owner asks this question at some point.
Why Most Business Valuations Get It Wrong
Almost every business owner asks this question at some point.
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What is my business worth?
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How much could I sell my business for?
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Should I get a business valuation before selling?
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These are reasonable questions. They are also commonly misunderstood.
The uncomfortable truth is this:
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A business valuation without buyer demand is a theory, not a price.
Why Business Valuations Create Anxiety
Searches for business valuation spike when owners feel uncertainty.
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Sometimes it is driven by:
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A desire to retire
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A change in circumstances
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An unsolicited approach
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A competitor being sold
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A sense that the business has peaked
Valuation feels like the logical next step. Numbers feel safe. Reports feel definitive.
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But many owners quickly discover that different advisers, tools, and models produce very different answers.
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That is not because the business is unclear. It is because value is contextual.
How Businesses Are Actually Valued
In practice, businesses are not valued in isolation.
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They are valued by buyers with:
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Specific strategic objectives
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Risk appetites
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Growth plans
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Funding structures
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Time horizons
Two buyers can look at the same business and reach very different conclusions.
A trade buyer may value synergies, customers, contracts, or geography.
A financial buyer may focus on cash flow, stability, and scalability.
A management team may value continuity and control over headline price.
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This is why valuation ranges exist, not single numbers.
Why Valuation Calculators and Multiples Fall Short
Online valuation calculators and simple EBITDA multiples are attractive because they are fast and easy.
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They also strip away context.
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They do not account for:
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Who is buying
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Why they are buying
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What problem your business solves for them
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What alternatives they have
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What competition exists for the deal
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Multiples are not wrong. They are incomplete.
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Used without buyer insight, they encourage false certainty and poor decision making.
Buyers Set Value, Not Spreadsheets
This is the part many owners are not told early enough.
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The market does not reward effort.
It rewards alignment.
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Your business is worth what a credible buyer is prepared to pay, under specific conditions, at a specific moment in time.
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That price is influenced by:
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Buyer demand
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Competitive tension
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Timing
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Deal structure
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Risk allocation
Remove demand, and value softens.
Introduce competition, and value moves.
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This is why understanding who is buying businesses like yours matters before commissioning formal valuations.
Valuation Before Selling Versus Valuation During a Sale
There is a difference between:
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A valuation to inform thinking
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A valuation to support a transaction
Pre sale valuations can be useful as a guide.
They should not be mistaken for outcomes.
In live sale environments, valuation evolves as buyers engage, question assumptions, and propose structures.
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This is not failure. It is the market doing its job.
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The mistake is treating a valuation as a promise rather than a reference point.
Why Value Changes Over Time
Business value is not fixed.
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It moves as:
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Buyer appetite shifts
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Sectors fall in and out of favour
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Interest rates change
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Regulation evolves
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Capital becomes cheaper or more expensive
Even well run businesses experience value fluctuation.
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Owners who understand this stop chasing perfect timing and start managing optionality.
Understanding Value Without Committing to a Sale
One of the biggest fears around valuation is that it forces a decision.
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It does not have to.
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You can explore:
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Buyer appetite
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Indicative pricing logic
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Structure preferences
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Timing considerations
Without:
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Publicly selling
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Mandating advisers
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Starting a formal process
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Alerting stakeholders
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Early conversations with informed parties often provide more insight than a static valuation report.
The Role of Business Wanted in Valuation Context
BusinessWanted does not provide theoretical valuations.
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It provides access to buyer intent.
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By understanding:
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Which buyers are active
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What they are seeking
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How they assess opportunity
Owners gain real world context for value.
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This does not replace professional advice.
It informs it.
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Valuations become grounded. Expectations become realistic. Decisions improve.
A Better Question Than “What Is My Business Worth?”
A more useful question is:
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What would motivated buyers pay for my business, and under what conditions?
That question accepts reality rather than resisting it.
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It recognises that value is discovered, not declared.
Where This Fits in the Bigger Picture
Understanding value sits between demand and decision.
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First, understand who is buying.
Then, understand how buyers think about value.
Only then does preparation make sense.
This is how experienced owners approach exits.
Quietly. Methodically. Without rushing.
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If you want to understand how buyers might value your business in the current market, an exploratory conversation is often the most accurate starting point.
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No commitment. No pressure. Just perspective.
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