It’s the first question nearly every business owner asks me:
“What’s my business worth?”
It’s a fair one—and a foundational one. But it’s also more nuanced than it seems. Over the years, I’ve had the privilege of working with numerous leaders and business owners, and I’ve also sold my own companies. Through those experiences, I’ve seen firsthand how confusing—and inconsistent—the valuation conversation can be.
To make it simpler and more useful, I’ve broken it down into five common approaches that business owners use to value their companies. This framework isn’t pulled from a textbook—it’s shaped by real-world experience. I’ve personally gone through all five, learning something new each time. There’s a time and place for each, but understanding where they fit—and where they fall short—is key.
Let’s walk through them, starting with the least reliable and moving toward the most accurate.
#1: The Offhand Opinion
We all have trusted networks—friends, colleagues, mentors—the people we lean on when we’re facing big decisions. When I was preparing to sell one of my companies, I reached out to smart people in my circle. They knew my business. They believed in it. And they threw out big, exciting numbers.
“You’ve built something incredible—it’s worth a big number.”
“Target a sale at this price. That’s what I’d do.”
The enthusiasm was contagious. But eventually, I had to ask myself: how many of these folks had actually sold a business?
The answer? None.
Support is valuable. But support isn’t the same as expertise. And when it comes to something as significant as selling a company, that distinction is everything.
#2: The DIY Google Search
Naturally, I turned to the internet. I searched for multiples—EBITDA, revenue, industry comps. I found some quick answers, plugged in numbers, and got a ballpark range.
It was helpful—to a point. But what I quickly realized was how generic it all was. Those benchmarks didn’t account for my company’s growth rate, customer concentration, recurring revenue, or competitive edge. It was a step forward, but still far from the truth.
#3: The Broker or Banker Valuation
At one point, I engaged with an investment banker. The valuation they presented was polished, detailed, and—frankly—exciting. But I’ve been in this world long enough to know: when someone is trying to win your business, they may tell you what you want to hear.
Their analysis wasn’t wrong, but it was optimistic. I’ve seen many founders latch onto those big numbers, only to be disappointed later. The key is to recognize the bias behind the pitch.
#4: The Independent Valuation Firm
While I didn’t use an independent valuation firm for the sale of my company, I’ve engaged them in other scenarios—and I’ve seen the real value they can provide.
These firms don’t have a stake in the transaction, and that objectivity matters. The best ones combine deep industry knowledge with multiple valuation methods and credible data sources to produce a clear, unbiased assessment of what a business is worth. They’re not trying to win your business or sell you on a dream—they’re simply focused on giving you the truth behind the numbers.
For many business owners, this can be a great way to establish a grounded starting point, especially when you’re weighing your options or preparing for future strategic moves. It’s an investment, yes—but in the right situation, it brings clarity that’s hard to put a price on.
#5: The Only One That Truly Counts: The Sale
At the end of the day, your business is worth what someone will actually pay for it. That number reflects timing, market appetite, deal structure, and a dozen other factors that no spreadsheet can fully predict.
In my own exit, the final sale price didn’t match the highest valuation I’d heard—but it was solid, real, and reflective of the market at that time. And that’s the number that mattered most.
Final Thoughts
The valuation journey is complex—but it doesn’t have to be confusing. I’ve lived it. I’ve coached others through it. And I’ve built Exit Pathways to be a trusted resource for founders who want real answers—not hype, not guesswork, and not recycled talking points.
So, if you’re asking yourself what your business is worth, know that you’re not alone. More importantly, know that you don’t have to figure it out on your own.
Author: Brent Drever, Managing Partner
