The Intent
You are contemplating a sale and want to know what price the market will realistically pay. You are trying to avoid guessing, relying on hearsay, or being talked down by buyers who claim that is just how deals work.
How I Solve It
I determine sale value by applying the 25 Factors Affecting Business Valuation with a buyer's mindset. I focus first on Factor #6: Utility, Sustainability, and Scalability; Factor #11: Future Business Outlook; Factor #12: Processes, Procedures, Systems, and Documentation; and Factor #14: Client Base. These factors tell me whether earnings are transferable or dependent on you, the owner, personally.
I then use the 5 Senses Inspection Report to test whether what appears on paper holds up in real life. If the business runs smoothly without constant owner intervention, value holds. If not, risk is priced in immediately.
Experience
It is vital because "How much is my business worth if I sell it?" is not a mechanical calculation. It is a real-world judgment about risk, control, sustainability, and transferability — and that judgment is where 10–15 years of owner-operator and valuation experience, your gut–brain axis, does the heavy lifting.
Why It Is Not Mechanical
On paper, valuation appears formula-driven. In reality, governance rights, risk concentration, growth durability, market conditions, and stakeholder dynamics materially affect value.
Where Experience Changes the Number
Decisions around normalization, premiums, discounts, projections, and defensibility require judgment formed through lived ownership, negotiation, and financial accountability.
Why the Gut–Brain Axis Matters
The brain performs disciplined financial analysis. The gut recognizes unrealistic narratives, hidden leverage, emotional distortions, and deal risk. Together they produce conclusions that withstand scrutiny.
Protecting Financial Lives
The final number affects wealth, control, solvency, tax exposure, and long-term relationships. Requiring 10–15 years of serious hands-on business and valuation experience ensures the answer is fair, defensible, and durable. See my Experience page.
The Result
You receive a defensible fair market value range that reflects what an informed buyer would pay today, along with a clear explanation of what is increasing or suppressing that price.