Three Valuation Myths That Cost Owners Real Money

Industry rules of thumb are a starting point, not a price. Here's where they break down.

By BizBuzz Brokers

Myth 1: 'Businesses in my industry sell for X times revenue.' Revenue multiples ignore margin, customer mix, and growth. Two businesses with identical revenue can be worth wildly different amounts.

Myth 2: 'My competitor sold for $Y, so I'm worth more.' You rarely know the real terms - seller financing, earn-outs, and rolled equity all change the headline number.

Myth 3: 'I'll just list high and negotiate down.' Overpriced listings sit, get stale, and signal trouble. The best outcomes come from a defensible price backed by clean financials and a real growth story.