What Your Business Is Really Worth
(And Why It’s Probably Not Enough Yet)
Most owners think they know what their business is worth.
They throw out rough multiples. Compare to peers. Guess based on revenue.
But the truth is:
Your business isn’t worth what you think it is. It’s worth what a buyer is willing to pay.
And buyers don’t just look at top-line revenue or bottom-line profit. They look at: Risk. Transferability. Growth potential.
The Valuation Formula Everyone Knows (And Misuses)
Valuation = EBITDA x Multiple
Everyone focuses on the EBITDA. Almost no one understands the multiple.
But the multiple is where the magic happens—or doesn’t.
A 5M EBITDA business at 3x is worth $15M. The same business with de-risking and strategic capital enhancements could command a 6x multiple or $30M.
Same business. Double the value. That’s the power of the multiple.
What Drives the Multiple?
Buyers pay premiums for companies that are:
Not dependent on the founder
Recurring and predictable in revenue
Protected by systems, processes, and people
Positioned for growth, even without new capital
That’s where intangible capital comes in:
Human Capital – Skilled team, low turnover, strong leadership
Customer Capital – High retention, subscription/repeat revenue
Structural Capital – SOPs, tech, IP, processes, automation
Social Capital – Brand reputation, strategic partners, PR
The stronger these are, the higher your multiple.
What Buyers Hate (and Discount For):
Key-person risk (aka: YOU)
Flat or inconsistent growth
Customer concentration
No second-layer leadership
No systems or documentation
If your business depends on you to run, fix, or grow… your multiple will suffer.
Your Move:
Want to know what your business is really worth today—and how much value is on the table?
Start with our free Value Gap Assessment. It’ll show you where the risks are, what’s hurting your multiple, and how to fix it.
[Click Below for Free Assessment]
Coming Next Week:
Before You Sell Your Business, Read This
Don’t settle on your exit.
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