Understanding the Value of Your Business
A clear understanding of your company’s value is the foundation for informed exit planning and long-term financial strategy.
Questions Every Owner Asks
- What is my business worth?
- How sellable is it?
- Is now a good time to sell?
- Who will want to buy my business?
- How can I increase my value?
What a Sound Answer Requires
Answering these questions takes more than a guess, it requires sound expertise, financial analysis, market awareness, experienced perspective, and great care.
Our Estimate of Value Process
Our estimate of value (EOV) process is built on accuracy, clarity, and real-world market insight.
Recasting Historical Financials
We recast your financial statements to reflect the true earning power of the business. This includes normalizing owner compensation, removing one-time expenses, and adjusting for non-recurring revenue to establish a clear baseline of cash flow.
Analyzing Value Drivers
Beyond financial performance, we evaluate the qualitative factors that influence a buyer’s willingness to pay a premium, including management depth, customer concentration, recurring revenue, systems, and operational stability.
Industry Performance Comparison
We compare your company’s financial performance and operational benchmarks against industry standards. This helps identify areas of relative strength and areas where improvement could meaningfully increase value.
Required Net Working Capital
Working capital expectations are one of the most common points of negotiation in a business sale. We analyze your current and historical working capital levels to establish a defensible baseline and reduce surprises during due diligence.
Comparable Sales Analysis
We research completed transactions involving businesses similar in size, industry, and performance. This provides real-world context for value and helps set expectations grounded in actual market data.
Current Market Listings
We review active market listings for businesses comparable to yours. This helps gauge current supply, competitive positioning, and buyer expectations in today’s marketplace.
Feedback from Industry Experts
Where appropriate, we consult with industry-specific contacts and intermediaries who have firsthand knowledge of deal flow, buyer appetite, and sector trends to sharpen our valuation perspective.
Buyer Type Analysis
Different buyers, whether strategic acquirers, private equity firms, or individual operators, assign value differently. We analyze which buyer types are most likely to pursue your business and how their perspectives may influence the price and terms.
Additional insights you’ll gain
Test Drive the Relationship
Our EOV process also serves as an opportunity to evaluate our working relationship before making any long-term commitment. You’ll gain firsthand experience with our communication style, analytical process, and level of care before deciding to move forward with an engagement.
Marketing Strategy Preview
As part of the EOV, we begin outlining potential marketing strategies, including buyer types most likely to pursue your business, positioning considerations, and how your business might be presented to the market.
Economic Impact Assessment
We help you understand the financial implications of a potential sale, including the impact of deal structure on your net outcome, and how the sale price translates into real-world financial results. The EOV is also useful for your accountant, or one recommended by Kelly, to estimate the potential tax impact of selling your business.
Timing Considerations
Market conditions, industry cycles, and personal readiness all influence optimal timing. We share our perspective on whether current conditions favor sellers and how timing may affect your outcome.
Value Improvement Recommendations
If there are specific actions you can take to increase value prior to going to market, we identify them. This may include operational adjustments, financial presentation improvements, or strategic changes that could meaningfully impact your result.
Selling Process Clarification
Many owners enter the process without a clear understanding of what to expect. We walk you through the key stages of a business sale so you can plan accordingly and make informed decisions at each step.
Revenue alone does not determine value.
We evaluate the full picture — financial performance, qualitative strength, and external market conditions — to build a credible, defensible valuation.
Consistent EBITDA
Reliable future EBITDA
Accurate financial statements
Clean balance sheet structure
Stable business operating systems
Protected intellectual property
Experienced management
Diversified customers
More than a number
An estimate of value provides more than a projected sale price range.
Many owners request our estimate of value service years before actively selling their business. It serves as a baseline for long-term planning, strategic decisions, and ultimately, a successful exit.
Frequently asked questions about how we estimate value
What is a Broker’s Estimated Value?
Our estimate of value (EOV) service provides a structured, confidential review of your company’s financial performance, value drivers, operations, and industry. Owners can start with our Instant Valuation Estimator (IVE) for a high-level value range, or engage in our 2–4 week Estimate of Value (EOV) process for a more detailed, accurate valuation with tighter ranges and deeper insight.
What insights can I gain about likely buyers?
You’ll learn which buyer types are most likely to pursue your business—and why. Different buyers value businesses differently (strategic buyers, private equity firms, and individual operators). We’ll outline which groups tend to be the best fit for your size, industry, and performance, and how that buyer mix may influence price, terms, and timeline.
What kind of operational feedback can I expect?
You can expect practical feedback tied to the value drivers buyers care about most. That may include management depth, customer concentration, recurring revenue strength, systems and process maturity, and overall operational stability. We’ll also flag areas where small changes could reduce buyer concerns and strengthen value.
How does Kelly Business Advisor provide better advisor insight?
The Instant Valuation Estimator is a helpful starting range. Our advisory insight comes from the deeper work: recasting financials, analyzing value drivers, comparing your performance to industry benchmarks, reviewing working capital expectations, and grounding the estimate in comparable sales and current listings. We also apply real buyer behavior—how different buyer types evaluate risk and pay for value—so your estimate is credible, defensible, and useful for decision-making.
Start the conversation.
Whether your priority is selling, buying, estimated valuation, or planning, our team brings the structure and communication needed to move forward.
Confidential. No obligation.