What lowers the value of my business?

Buyers and lenders price risk, and the things that scare them off are predictable. Most of these are fixable if you catch them before you list.

The business cannot run without you

If you personally hold the key customer relationships, make every sale, and are the only one who knows how things really work, a buyer has to price in the risk that the business struggles once you are gone. Owner dependence is consistently one of the biggest discounts buyers apply, and it is also one of the hardest things to fix quickly.

Revenue is concentrated in a few customers

A business where one or two customers account for most of the revenue is fragile: lose one contract and the business looks completely different. Buyers and lenders will ask for a customer breakdown and discount the price, or walk away, if concentration is high.

The books do not hold up

Financial statements that do not reconcile to your tax filings, unexplained add-backs, or a mix of personal and business expenses all slow down due diligence and erode trust. A buyer who finds one inconsistency starts questioning everything else, which tends to show up as a lower offer or a longer, more demanding due diligence process.

The lease, licences or contracts are shaky

A lease that is about to expire, cannot be assigned, or has a landlord who is slow to consent creates real risk for a buyer counting on staying in that location. The same goes for any licence, permit, or clearance a buyer needs before taking over. Outstanding obligations to a regulator, unresolved liens, or contracts that cannot be transferred all reduce what a buyer is willing to pay or delay closing.