When selling a business, the sale price isn’t the full picture — broker fees (5-10%), taxes, legal costs, and debt can significantly reduce your walk-away cash. A $3.5M sale, for example, might leave you with $2.2M after deductions. Getting an accurate valuation and crafting a smart exit plan are crucial steps to estimate your net proceeds and ensure the sale meets your financial goals, whether for retirement or a new venture.

Many business owners take pride in being the backbone of their company, but if you’re planning to sell in the next 3–5 years, being too involved can hurt your business’s value. Buyers want a business that runs smoothly without heavy owner involvement. This article explores why making yourself less essential can increase your business’s attractiveness to buyers, boost your sale price, and ensure a smoother transition after the sale.

Understanding what drives business valuation is key to planning a successful exit. In this article, we break down the six core factors that influence how much your company is worth—from financial performance and growth potential to customer concentration and owner dependence—based on our Strategic Value Optimization Framework.