The Risk of Misunderstanding Your Market Value
Most business owners don’t have a clear, market-based view of what their business is worth.
They rely on:
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what they need financially
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informal opinions
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what similar businesses are listed for
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outdated rules of thumb
None of these reflect how a buyer will actually assess the business. The gap only becomes obvious when it’s too late: no offers at the asking price, offers well below expectations, or the price being chipped away during due diligence.
The Reality of How Business Value is Measured
There isn’t a single formula that determines value. It’s a combination of commercial judgement and market reality. Different buyers will see it differently, but they will all look at these factors:
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How sustainable your earnings are.
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The risks in the business (real and perceived).
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How transferable the business is, and the availability of credible buyers.
Two businesses with similar profits can have very different values depending on how those factors show up.
The takeout: The same business can have a very different value depending on the buyer.
Our Objective Approach to Business value Appraisal
We analyse your financials ‘line by line’. We help you look at your business the way a buyer would. That means:
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Assessing the sustainable underlying earnings of the business.
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Identifying the factors that have the biggest impact on your financial performance.
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Highlighting any risks that will affect price or deal terms.
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Forming an unbiased, realistic appraisal of what your business would be worth if sold today.
This isn’t a theoretical exercise, nor is it a guaranteed future sale price. It is a considered baseline to kick-start your planning.
Your Definitive Valuation Deliverables
You walk away with a clear estimate of current market value (usually a range), an understanding of what’s driving that value, visibility on what’s holding value back, and insights on how buyers are likely to view the business.
For many owners, this is the first time they’ve seen their business from the outside looking in.
Your Deliverables:
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3–5 page summary report.
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Indicative Value Assessment with a high-level ‘traffic light’ assessment of business value drivers.
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Deep financial analysis + key ratios.
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Data on comparable historical business sales and current asking prices (where available).
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1x Debrief Call.
Is Stage 1 the Right Fit For You?
If your business is already on the market, the VSD is probably not the right fit. Where Stage 1 helps business owners best is when they’ve:
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Received an unexpected offer (usually from a competitor or employees) and aren’t sure how to progress this discussion.
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Been ‘thinking about selling’ but aren’t clear on potential value, or even if it’s what they actually want to do.
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Been considering discussing an ‘internal succession’ with key employees and need a commercially sound starting point.
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Decided to actively improve business value but aren’t sure where to focus.
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Reached a point where they just want to understand what their options are.
“I would highly recommend anybody considering selling their business to engage the business diagnostics tool, and Michael as it provides excellent context as to where you currently are and provides valuable guidance on where to focus your energies to maximise your sale value” [Tom, co-owner, Industrial Manufacturing & Distribution business (Vic)]
The Investment
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Timeframe: A focused 2-week turnaround from receipt of all requested information.
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Cost: $3,950 + GST (Fixed Fee)
If you’re unsure what your business is really worth—or what a buyer would actually pay—the best place to start is to get a clear, independent view.