Valuation and exit planning
Know what it’s worth before you need to.
Most owners find out what their business is worth when a buyer tells them. Start two to three years earlier, and you have time to raise the number.
Broker opinion of value
A written estimate of what your business would likely sell for in today’s market, built on normalized cash flow and what similar businesses have sold for.
It shows a low, middle, and high range, and explains what moves you within it.
What it isn’t
A broker opinion of value is not a certified appraisal. Estate and gift planning, divorce, and legal disputes need an independent credentialed appraiser. We can refer you to one.
What buyers pay more for
The same five areas the scorecard measures. Each one is something you can improve before a sale.
Clean financials
Books that tie to tax returns and add-backs a buyer can verify.
Less owner dependence
A team that can run the business without you every day.
Spread-out customers
No single customer large enough to sink the business if it leaves.
Systems
Written processes and software, so knowledge isn’t only in your head.
A growth story
Specific, believable ways the next owner can grow.
A two-to-three-year exit plan
- 1Score and valueScorecard plus a broker opinion of value to set the baseline.
- 2Fix listThe changes most likely to raise value, in order.
- 3Do the workCFO support to clean up the numbers and build a team that runs without you.
- 4Go to marketWhen the business is ready, and when you are.
Common questions
What is a broker opinion of value?
An estimate of what your business would likely sell for, based on its earnings, its risks, and how similar businesses have sold. It is not a certified appraisal. For an estate, a gift, a divorce, or a legal dispute you need an independent credentialed appraiser, and we can point you to one.
What multiple will my business sell for?
We do not quote a multiple until we have seen your numbers and the comparable sales that fit your business. Multiples vary with size, industry, owner dependence, and customer concentration.
What do you need from me?
Three to five years of financial statements and tax returns, a list of owner and one-time expenses you want considered, and a short description of your role in the business.
What if some sales were never reported?
Buyers and lenders only credit income that shows up on your tax returns, so we leave unreported income out of the value. Talk with your CPA and your attorney about it before you plan a sale.
Will anyone know I asked for a valuation?
No. A valuation is confidential, and nothing you share leaves our office without your permission.