EP 114: Does your Business Valuation Help or Hurt Your Chances Selling Your Business?

In my 30-year journey through the world of deal-making, I’ve had the pleasure of conducting thousands of business valuations and working alongside some of the most talented appraisers across the United States. In this podcast episode, we’re diving into a common confusion in the business valuation process—what you expect versus what you actually get.

Most of my work revolves around preparing businesses for sale, and my goal is to ensure that everyone who comes to me for valuation walks away with the insights they need, specifically geared toward selling. Nothing more, nothing less. One area where things get a bit murky is the terminology, especially when it comes to “fair market value.” It’s a term often thrown around to mean the same as “investment value” or “market value,” but the definition of fair market value can differ when we're talking about selling.

In today’s episode, I’m breaking down the differences between fair market value and market value to highlight the important distinctions that could significantly affect your sale. Here’s the bottom line: Knowing your appraiser and understanding the standard of value they’re using is critical. If you’re looking for an appraiser for reasons other than selling, I’ve got a go-to list I’d be happy to share.

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About the Show

The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.

 

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