When you're ready to sell your business, the most critical decision you face is setting the initial price. As a sophisticated business owner in the Consideration stage, you know an emotional estimate won't work. An overpriced business sits on the market, gathering dust, while an underpriced one leaves money on the table.
The Market Approach, specifically using market comparables (comps), offers a data-driven path to determine your company's market value based on similar transactions in your sector. This method is essential for establishing fair market value and preparing for tough negotiations. Our 2025 update focuses on the advanced data sourcing and normalization techniques necessary to derive a highly accurate valuation multiple from today’s fragmented and fast-moving private markets.