The Real Talk You Wish Someone Gave You Sooner
Let’s Be Honest—There’s No Magic Number
I’ll never forget the day I realized I had absolutely no idea what my business was worth. I was sipping lukewarm coffee in a paper cup that had definitely seen better days, flipping through a half-crumpled folder of P&L statements, and wondering, “Am I about to screw myself over?”
If you’ve ever asked yourself, “What’s a fair price to sell my business for?”—welcome to the club. It’s not just about spreadsheets and formulas (though there are plenty of those). It’s about timing, emotion, market appetite, and sometimes, just good old-fashioned gut feeling.
But let’s unpack it, step-by-step—without the fluff.
1. Start With Reality, Not Fantasy
When I first floated the idea of selling my business, I had some… strong feelings. You know the type: “I built this from scratch, worked weekends, sacrificed holidays—this thing is worth millions!”
Spoiler: that’s not how buyers think.
Buyers aren’t buying your blood, sweat, and tears—they’re buying cash flow, systems, and future potential. Cold, I know. But it helped me detach emotionally and think like a buyer.
Here’s what helped ground me:
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SDE or EBITDA Multiples: Most small-to-mid businesses sell for 2-5x SDE (Seller’s Discretionary Earnings) or EBITDA. If you’re a $400K/year SDE business, your selling price might range from $800K to $2M, depending on risk, industry, and growth potential.
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Industry Trends: Some industries are hotter than a summer sidewalk in flip-flops (tech, health services), while others cool faster than microwave pizza.
2. Dig Into the Numbers—but Tell a Story
You know how some people can cook a five-course meal using just whatever’s in the fridge? That’s how I approached prepping my books. My QuickBooks looked more like a mystery novel than a balance sheet.
But cleaning up my financials was like finally changing a lightbulb I’d ignored for years—it just made everything clearer.
Buyers want:
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Clean P&L statements (preferably 3+ years)
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Logical add-backs (don’t try to sneak in your dog grooming expenses)
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Forecasts they can actually believe
And here’s the kicker—numbers matter, but stories sell.
I crafted a narrative around how the business weathered COVID, pivoted fast, and built a loyal customer base. That gave buyers confidence that the systems weren’t just duct-taped together.
3. Market Conditions Matter (Even If You Don’t Like It)
I had a friend try to sell his ecommerce brand in early 2023. Let’s just say, it was not a seller’s market. Multiples had dipped, buyer funding dried up faster than my enthusiasm at tax time, and deals got stuck in due diligence limbo.
What I learned? Timing isn’t everything, but it’s… like, 70%.
If interest rates are high, buyers get picky. If your industry’s trending on TikTok, you’ll have a bidding war. If the economy’s looking uncertain? Expect offers to dip and deals to stretch out.
Pro tip: Don’t try to “wait for the perfect moment.” That’s like trying to time the stock market—it’s more art than science. Focus on being ready.
4. Intangibles Can Boost—or Kill—Your Valuation
I had an incredible brand. Strong reviews. Loyal email list. Smooth supply chain.
But my Achilles’ heel? Me. I was too involved. I was the bottleneck. I was doing sales calls, ops, and some support. That scared off buyers like I’d told them the building had termites.
So I spent six months “de-owner-izing” the business. Trained a VA. Delegated ops. Built a simple SOP. Like magic, the perceived value jumped.
Here’s a quick cheat sheet of intangibles that matter:
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Owner independence ✅
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Recurring revenue ✅
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Customer concentration ❌
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Strong brand presence ✅
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Team in place ✅
5. Ask Around—But Don’t Copy Everyone
Everyone and their mother will have an opinion about what your business is worth.
My CPA told me one thing, my business broker another, and my neighbor who flips NFTs said I should accept crypto and retire on an island.
In the end, I interviewed a couple of business brokers and got a third-party valuation. That gave me a realistic anchor before I started fielding offers. Remember, a “reasonable” price isn’t just about numbers—it’s what you are willing to accept and what the market’s willing to pay.
6. Your Reason for Selling Affects the Price (No One Tells You This)
Buyers aren’t dumb. If you’re selling because you’re burned out, great—they’ll ask for a discount. If you’re selling because you want to scale up into a new venture and have systems humming along? Suddenly, you have leverage.
When I made my exit, I framed it like this: “This business has untapped potential I no longer have the bandwidth to pursue, but it’s set up for a smart operator to double revenue within 18 months.” Boom. That’s value, not desperation.
So… What’s Reasonable Then?
Let’s boil it down:
A reasonable price to sell your business is…
✅ 2–5x your SDE or EBITDA
✅ What the market is paying in your industry
✅ What your business can support post-sale (no inflated nonsense)
✅ A number that makes sense for both sides
✅ Enough for you to walk away happy and not resentful
Final Thought: You’re Not Just Selling a Business. You’re Selling a Chapter of Your Life.
I won’t pretend it was easy. The last week before the deal closed, I barely slept. I questioned everything. Was I selling too low? Was I making a mistake?
But here’s what I’ve learned since:
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Peace of mind is worth something.
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A clean break feels better than dragging things out.
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And your next chapter? It deserves all the focus.
If you’re wondering what your business is worth, don’t just look at spreadsheets. Look at your story, your systems, and your sanity. That’s where the real value lives.
Got a question about pricing your business? I’m not a guru—I’m just a guy who’s been through it, and lived to tell the tale (with a few gray hairs and a much better accountant).
Would you sell your business if someone offered the “right price” tomorrow?