3 Steps to Uncover What Your Business is Actually Worth

This week, we’re diving into:

• How to uncover what your business is actually worth (and why it matters today)

• 5 challenging questions that will pressure-test your exit readiness

• 3 actionable steps you can take this week to prepare for your business exit

Let’s get to it.

💡 One Big Idea

 How to Uncover What Your Business is Actually Worth (and Why it Matters) 

When most founders think about a business valuation, they imagine a tense negotiation where they're disputing over EBITDA multiples and deal comps with a buyer on the other side of the table.

But the truth is, the real work happens long before you ever get to that point.

Because if you don’t know what your business is worth (and why), someone else will tell you — on their terms.

That's why a credible business valuation isn’t just a number. It’s a strategy tool.

It shows you how your business would be perceived by a serious buyer, and more importantly, where it falls short.

I hear stories all the time of founders who are shocked to learn their business wasn’t worth what they thought it was.

Not because the business was bad, but because they hadn’t built in the right ways to attract strategic buyers.

They weren’t tracking the right metrics, they had customer concentration issues, or they had value drivers that weren’t well documented, like IP or brand equity.

On the flip side, I’ve seen founders increase their valuation by millions just by knowing what actually drives the number up (and fixing what pulls it down).

The point is, a professional valuation gives you that roadmap.

It's not a guess, and it's not a gut check. It's a baseline to build from.

Your Action Items:

1. Get a valuation that shows how buyers would actually assess your business: Talk to someone who understands your industry, not just generic metrics. Remember, the right valuation includes risk factors, growth levers, and deal structure.
   

2. Find signal in the noise: What parts of your business will command a premium? What’s dragging your value down? Knowing these things lets you focus your time where it’ll actually move the needle.
   

3. Revisit your valuation every 12–18 months: This isn’t a one-and-done thing. Your strategy should change as your business grows, your buyer appetite shifts, and the markets change.

If you need help with any of this, just reply to this email or contact us here to learn more. I'm happy to walk you through what the process looks like wherever you're at in your journey.

❓ 5 Key Questions to Ask Yourself This Week

Before you even think about an exit or talk to a buyer, there are several important questions you should be asking yourself.

The five questions below are anything but easy to answer. In fact, they'll challenge you to think about things you may never have before. But they could be the difference between a clean and confident exit, or one you wish you could take back:

1.) Think back on how your business was valued the last time you checked. What was the value? Who valued it?

If your answer is just a multiple you heard from a friend, or a shot in the dark with no real data to back it up, that’s a problem.

2.) What about your business actually makes it worth more than the average in your industry?

Not hypotheticals. Real, documented value drivers a buyer would see in diligence.

3.) If a buyer reviewed your last 3 years of financials today, what would concern them?

Maybe it's messy add-backs? Or margin swings? Or maybe it's your customer concentration? Be honest here.

4.) How do different types of buyers (strategic vs. financial) value your business differently?

This answer should inform everything, from positioning to outreach. And if you haven't thought about it, sit down and figure it out this week.

5.) Are you tracking the metrics that increase your valuation or just the ones that run the business?

There’s a real difference between operational data and M&A-readiness.

📋 3 Action Items For This Week

☑ Talk to a valuation expert in your category:

Even a short call can help you understand how buyers are looking at businesses like yours right now, and what they’re paying attention to.

☑ List your top 3 value drivers and where they show up in your financials:

If your biggest differentiators aren’t documented clearly, they’re invisible to a buyer. Which is something you need to fix ASAP.

☑ Review your last 24 months of financials with a buyer’s eyes:

Look for the red flags you know would be questioned in diligence. Then create a plan to clean them up.

That's all for this week.

Reply to this email if you have any questions or need help with any of the above. I'd be happy to walk you through it.

Until next time,

Brian