VANTAGEBUSINESS BROKERS

Valuation & Exit Readiness

Knowing what your business is worth
is only half the answer.

A business can have economic value and still be difficult to sell. A useful valuation should consider value, buyer confidence, financeability, structure and likelihood of closing.

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Vantage Seller AdvisoryPrivate · Deliberate · Owner-led

01 / Value ≠ Saleability

A $3 million valuation doesn't mean you have a $3 million check waiting.

Valuation tells us where the conversation starts. Saleability tells us whether a transaction can actually happen.

What are the earnings worth?What multiple might the market support?Is the business transferable?Can a buyer finance it?What structure might be required?How much could actually arrive at closing?

02 / Valuation approaches

Different businesses.
Different lenses.

No single shorthand replaces a defensible analysis of earnings quality, risk and market context.

SDE

Seller's Discretionary Earnings

Net profit + eligible owner adjustments = normalized owner earnings

A view of economic benefit commonly used to understand an owner-operated business.

EBITDA

Earnings before interest, taxes, depreciation and amortization

Operating earnings before capital and tax structure

Often relevant for larger or more professionally managed businesses, interpreted in context.

Revenue

Revenue — context, not cash flow.

Revenue ≠ profit ≠ value

Revenue multiples may be relevant in particular industries, but revenue alone is not a complete valuation methodology.

“My competitor sold for 1× revenue” isn't a valuation methodology by itself.

03 / Where the multiple comes from

The multiple reflects what buyers are willing to pay for confidence.

The quality, durability and transferability of earnings shape how buyers perceive risk.

Transferable profitCustomersOperationsIndustryGrowthConcentrationOwner dependenceManagementRecurring revenueMarket conditions
→Buyer
Confidence→Multiple

04 / Financeability

Your buyer isn't always the only buyer. Sometimes the bank gets a vote.

Acquisition financing introduces another perspective on risk. Terms vary by lender, transaction and borrower; none of these factors guarantees financing.

Debt-service capacityBuyer equityHistorical performanceTax returns + internal financialsQuality of add-backsWorking capitalSeller financing

05 / One business. Several numbers.

Value is not the same thing as proceeds.

Illustrative flow only. Every transaction has its own structure, liabilities, costs and tax considerations.

Indicative Enterprise Value↓Negotiated Purchase Price↓
Forms of Consideration
Cash at ClosingSeller NoteEarnoutRollover Equity
↓
Seller-Level Adjustments
Debt PayoffTransaction CostsTaxes
↓Net Proceeds / Seller Economics
Valuation≠Purchase Price≠Cash at Closing≠Net Proceeds

06 / Exit Readiness

Five dimensions of a transaction-ready business.

Readiness is not a score on one financial statement. It is the interaction of the company, the market and the owner.

01

Value

What the economics may support.

02

Transferability

What remains after the owner leaves.

03

Financeability

What a lender can reasonably support.

04

Documentation

What can be verified and defended.

05

Owner Readiness

What the seller wants life to look like next.

Begin with the real picture

Understand value—and the path to a close.

Request a confidential valuation Check your exit readiness Price vs. deal structure