One of the fastest ways to lose momentum—or miss out entirely—on selling your business is to set the wrong price. While it’s natural to aim high, overpricing your business can stall buyer interest and delay the outcome you’re hoping for.

Getting the valuation right is not just a financial exercise – it’s a strategic one. Research shows that businesses listed within 5% of their true market value sell up to three times faster than those priced based on wishful thinking. Still, many sellers struggle to align their expectations with what the market is actually willing to pay.

Understanding how business valuations work

Whether you’re ready to sell now or are still in the planning phase, starting with a business valuation and analysis can provide valuable insight into what your business might be worth.

Business valuations objectively evaluate all aspects of a business in determining its value. They typically analyze a company’s market value, management, capital structure, and future earnings prospects. Different industries can incorporate additional factors and methodology.

An experienced advisor, such as a business broker, should consider how tangibles and intangibles like location, personnel, unsold inventory, vendor/supplier relationships, loyal customer base and your professional connections all affect the market value of your business.

Using a multi-method approach for accuracy

Instead of relying on a single metric like an industry multiple, your business broker or advisor should use a blend of at least three different methods to prepare an accurate valuation:

• Asset-based valuation (what your physical and financial assets are worth)
• Discounted cash flow analysis (what your future earnings are worth today)
• Comparable sales (what similar businesses have recently sold for)

When these approaches produce a consistent range, you gain confidence that your asking price is grounded in reality, not guesswork.

The importance of setting logical expectations

Rather than being hit with a number that feels lower than expected, sellers benefit from being walked through the process. A good advisor will first educate you about how business valuations work, show you relevant benchmarks and real-world comparisons, and then present your specific valuation range with context and supporting evidence.

If there’s a gap between your ideal price and market reality, consider running a “proof of value” test. This involves listing your business at your preferred price for a limited time, while tracking buyer feedback and engagement. Often, the market provides a reality check that even the most experienced broker can’t match.

Don’t underestimate the emotional side of valuation

Before jumping into numbers, take a moment to reflect on the story of your business including the challenges you’ve overcome, the milestones you’ve reached and the team you’ve built. A good business broker will take these into account to better understand what your business means to you.

Selling your business isn’t just a financial transaction, it’s also deeply personal. By blending data-driven valuation with thoughtful communication, you can set a price that’s fair, defensible, and—most importantly—gets maximize your profit from the sale. At the same time, don’t allow your emotional attachment to influence your decision too heavily. The decision to sell a business, and price it appropriately, should ultimately be based in logic and a sound exit strategy.

If you’re thinking about selling a business in Southwest Florida, selecting the right broker for your valuation is a critical first step. If you price it too low, you risk leaving significant money on the table. If you price it too high, you might scare off serious buyers before they even reach out. While business brokers are the go-to professionals for accurate valuations, their expertise and commitment can vary widely.

At Corporate Investment Business Brokers (CIBB), based in Fort Myers and Sarasota, we specialize in delivering precise valuations for businesses of all sizes and across all industries. Our proven approach results in a high percentage of our listings selling at—or very near—the asking price. We don’t just assess your business’s current worth; we also help you identify ways to increase its value and prepare for a successful sale.

Reach out today for a free, no-obligation business valuation estimate and discover where your business stands.