When it comes to selling a business, one of the first and most important questions is: What is my business really worth? In other words, what is its Fair Market Value?
Many owners assume they already know the answer. After all, they’ve poured years of time, energy, and money into building it. But what you believe your business is worth and what the market is willing to pay are often two very different numbers.
Fair Market Value (FMV) is the price at which a business would transfer ownership between buyer and seller, with both parties having reasonable knowledge of all relevant facts and neither being under pressure to act.
In simpler terms, it’s the amount a well-informed buyer would actually pay today — not what you hope to get or feel your business deserves.
Just like you’d check the “blue book” value before selling your car, your business deserves the same diligence. The difference? The stakes are much higher, and the variables are far more complex.
We often hear sellers say,
“I don’t need a valuation — I’ve been in this industry for 30 years. I know what it’s worth.”
That confidence is understandable, but it can lead to disappointment once your business hits the market.
Your financials, industry trends, buyer demand, and even the structure of your operations all play significant roles in determining fair market value. Without a professional valuation, you risk overpricing — which can turn serious buyers away — or underpricing, which leaves money on the table.
A professional valuation provides a clear, unbiased picture of your business’s worth — backed by data, not emotion.
When you decide to pursue a valuation, your first call might be to your CPA or accountant. That’s a reasonable starting point — but not always the best one.
Unless your CPA holds the Certified Valuation Analyst (CVA) designation and regularly performs valuations, they may not be fully up to date on current methodologies or market trends.
A Business Intermediary or Certified Valuation Analyst specializes in understanding both the financial and transactional sides of business value — meaning they know how to position your business for buyers and lenders alike.
Even if your valuation is accurate, a deal can still fall apart if financing isn’t handled correctly.
Buyers and lenders often look beyond tax returns because financial statements prepared for tax purposes don’t always reflect actual economic performance. Adjustments must be made for discretionary spending, owner compensation, and one-time expenses to show the business’s actual earnings potential.
That’s why working with a Business Intermediary early in the process matters. They help ensure your financials are presented in a way that supports financing approval — dramatically improving your odds of closing successfully.
Fair Market Value isn’t just a number — it’s the foundation of a successful business sale.
Understanding what your business is truly worth allows you to price realistically, attract qualified buyers, and avoid costly surprises during negotiations.
If you’re considering selling or are curious about where you stand, a professional valuation is the smartest first step.
Talk to a certified Business Intermediary today and get a data-backed valuation that helps you plan your next move with confidence.