Independent Valuation vs. Buyer's Offer: How Not to Sell Your Business Too Cheaply

The buyer sends an offer. Is it good? Without an independent valuation there's no way to know — and that's exactly when owners often sell too cheaply. The valuation is your negotiating power.

1. Why the first offer is often too low

Buyers — especially experienced funds — start with a lower offer. Without a value anchor of their own, the owner has nothing to compare against and risks accepting a sum that looks large but is really below market.

2. Valuation as negotiating power

An independent valuation based on comparable transactions provides an objective reference point. It lets you respond to the buyer's offer with argument and often raises the final price.

3. What makes a valuation credible

• Normalised EBITDA (after removing owner-specific and one-off costs)
• Multiples of comparable transactions in your sector
• A sanity check across several methods
• An impartial source — not the buyer

4. When to get the valuation

FAQ

Do I need an independent valuation before selling?

Yes. Without an objective reference point it's hard to judge whether the buyer's offer is good — which is why owners often sell too cheaply.

How does a valuation help in negotiations?

It provides an objective, comparable-transaction-based reference point, letting you respond to an offer with argument and often raise the final price.