Business Valuation
Business Valuation Services. Know Your Number Before a Buyer Sets It.
An independent, defensible view of what your company is worth, and exactly what would make it worth more.
Quick Answer
What are business valuation services?
Business valuation services estimate what a privately held company is worth using the income approach (discounted cash flow), the market approach (comparable multiples), and the asset approach. A credible valuation starts by normalizing earnings, then weighs each method against the company's risk profile, and ends with a written value range and the drivers behind it.
Key Takeaways
- Buyers value normalized EBITDA, not reported profit.
- Most valuations reconcile two or three approaches into a range.
- Owner dependence and customer concentration reduce value.
- Value the business two to three years before a planned sale.
Last reviewed by the Sataurius advisory team.
Why Most Owners Do Not Know What Their Business Is Worth
Owners usually anchor on a rule of thumb they heard from a peer. Buyers do not. They normalize earnings, discount for risk, and price in every weakness they find in diligence. The gap between what an owner expects and what a buyer offers is almost always a gap in preparation.
A proper valuation closes that gap early, while there is still time to act on it.
How We Value a Business
- Normalize earnings: remove owner compensation distortions, one-off items, and personal expenses to show true, sustainable EBITDA.
- Apply the right approaches: discounted cash flow, comparable multiples, and asset value, weighted to fit the business.
- Assess risk: customer concentration, owner dependence, margin stability, and the quality of financial reporting.
- Report clearly: a value range with the drivers explained, plus the specific changes that would increase it.
Valuation as the Start of an Exit Plan
For owners planning a sale, valuation is step one of exit planning. It feeds directly into a sell-side quality of earnings report and prepares you for buyer financial due diligence. Medical practice owners can see our specialist guide to medical practice valuation.
What's Included
Scope of Engagement
Earnings Normalization
Adjusted EBITDA that reflects how the business performs without the current owner's personal choices.
Multi-Method Valuation
Income, market, and asset approaches reconciled into a defensible range.
Value Driver Analysis
The specific factors raising or lowering your value, ranked by impact.
Written Valuation Report
A clear report you can share with partners, lenders, advisors, or buyers.
FAQ
Frequently Asked Questions
What are business valuation services?
Business valuation services produce an independent, supportable estimate of what a company is worth, using recognized methods such as the income approach (discounted cash flow), the market approach (comparable company and transaction multiples), and the asset approach. The output is a written report that explains the assumptions, the normalized earnings, and the resulting value range.
When does a business need a valuation?
The most common triggers are a planned sale or exit, bringing in investors, a partner buyout or shareholder dispute, estate and gift planning, buy-sell agreement updates, SBA or bank financing, and strategic planning. Owners who value the business two to three years before a sale have time to fix the issues that pull value down.
What methods are used to value a business?
Three approaches are standard. The income approach discounts expected future cash flows. The market approach applies multiples from comparable public companies or recent private transactions. The asset approach values the underlying net assets. Most valuations weigh more than one approach and reconcile them into a final range.
What drives a higher business valuation?
Recurring and predictable revenue, strong and normalized EBITDA margins, low customer concentration, a management team that does not depend on the owner, clean financial statements, documented processes, and a credible growth plan. Weak financial reporting is one of the most common reasons buyers reduce their offer.
How long does a business valuation take?
A typical engagement takes three to six weeks once financial statements, tax returns, and management information are provided. The timeline depends mostly on how clean and complete the underlying financial records are.
Do you value businesses in Canada as well as the United States?
Yes. We work with owners in the United States and Canada. The valuation methods are the same; we adjust for local tax treatment, accounting standards, and market comparables.