Many business owners assume the valuation is the final price—but they’re not the same. Understanding the difference can help you set expectations and negotiate smarter.
1. Valuation = What It’s Worth on Paper
A professional valuation uses past financials, SDE, industry comps, and sometimes discount rates or asset appraisals. It gives you a “fair market value”—but it’s just the start.
2. Sale Price = What a Buyer Is Willing to Pay
Buyers bring emotions, strategy, timing, and financing to the table. Your sale price could be higher or lower than the valuation based on:
- How motivated the buyer is
- Whether your business qualifies for SBA financing
- Strength of recurring revenue or contracts
- How replaceable the owner is
3. Bridging the Gap
If your valuation is $1M but offers come in at $800K, don’t panic. You may need to:
- Justify your add-backs better
- Offer seller financing to boost buyer confidence
- Target different buyer types (e.g. strategic or SBA-backed)
4. Use Tools and Experts
Use our free valuation calculator to get a ballpark estimate. Or contact Exit Clue for a full broker opinion of value.
Final Thoughts
The valuation is your starting line. The sale price is the finish. Bridge the gap with strategy—and the right team.