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Why Most Founders Undervalue Their Business (and How to Fix It)
The Wise Exit Newsletter
Aiza Torres
June 19, 2025
In this week's issue, we're covering:
Why most founders undervalue their business, and how to fix it
A guide to valuing your retail business the right way
Why a £4.4B bidding war matters if you run a niche company
A frank story about what founders often overlook before going to market
Let’s dive in.
🧠 This Week’s Big Idea
Why Most Founders Undervalue Their Business (and How to Fix It)
If you’ve built a solid business, chances are it’s worth more than you think. But there's a catch:
Most founders underestimate what they've built.
They look at top-line revenue, guess at a multiple, and call it a day. With an approach like this, it's no surprise founders often leave money on the table.
The real value is hidden in the details buyers care about most.
Here’s where founders go wrong:
They forget to include add-backs: Things like owner perks, one-time costs, or roles that disappear after the sale
They undervalue intangible assets: Brand strength, customer loyalty, and team stability don’t always show up in the P&L – but buyers pay for them
They overlook future potential: Recurring revenue, expansion plans, and market positioning can increase your multiple (if you know how to present them)
Fixing these things isn’t about puffing up your numbers, either. It’s about showing buyers the whole picture and packaging the business in a way that commands premium value.
Founders who get this right tend to exit faster, cleaner, and for a higher multiple. Founders who don’t? They settle.
So ask yourself:
Are you pricing what your business is today, or what it’s really worth to the right buyer?
Curious What Buyers Would Actually Pay for Your Business?
Most founders undervalue what they’ve built or don’t realize which parts of the business turn buyers off.
But with a Certified Pro Valuation, we’ll help you:
Spot weak points before buyers do
Understand what your business is really worth in today’s market
Get a short list of real buyers who are actively looking in your space
“Exitwise helped us turn an average offer into something life-changing.”
— Shawn McKenna, Founder, DataFuzion
Special offer for readers: Get 10% off your valuation today. Just use the code VALUE10 when booking your call below.
📰 Featured Blog Post
How to Value a Retail Business for Sale [Ultimate Guide]
If you want the best price for your retail business, you need to know what drives its value – and what buyers actually pay attention to.
📰 In The News
Advent and KKR Battle to Buy UK-Based Spectris in £4.4B Deal
Precision instruments firm Spectris is the target of a takeover fight, with private equity firms Advent and KKR both making bids in a process expected to close soon.
Why it matters to you:
Buyers aren’t just chasing size, they’re also chasing deep expertise in niche sectors. So if your business excels in a specific domain, you could potentially have multiple buyers lining up against one another.
Specialization is a powerful exit driver right now.
This is a deal I'll be keeping a close eye on over the next few weeks.
🗣️ From Brian
The other day, I spoke with a founder weighing whether to go to market alone or bring in someone like us to help.
He asked a question we get pretty frequently, "What does an M&A advisor actually bring that I can’t do myself?"
I shared four key questions we ask every founder we work with:
Are your financials truly deal‑ready, with projections and clean historicals?
Do you have a shortlist of active buyers or just one name?
Is your teaser and CIM polished and buyer‑ready, not AI‑drafted?
Do you have a plan for diligence and negotiation, or is everything relying on your lawyer?
The bottom line is this:
A goal without a plan is just a wish.
How did you like this week's newsletter? |
That's all for this week. Until next time.
Best,
Brian