What is your business worth, and what will you actually keep?
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What your business is worth comes down to its profit, growth, and how dependent it is on you, but what you actually keep depends on the deal structure and taxes. A valuation for planning gives you a realistic range to plan around. It is not a formal appraisal, and the gap between sale price and take-home is usually larger than owners expect.
How do you figure out what a business is worth?
Most privately held businesses are valued on a multiple of profit (often adjusted EBITDA or seller's discretionary earnings), shaped by growth, margins, customer concentration, and how much the business depends on you personally. A company that runs without the owner in the room is worth more than one that doesn't.
For planning, you don't need a transaction-grade appraisal. You need a realistic range you can build decisions around. That's a business valuation for planning, intended for insight rather than a formal appraisal for a sale or filing.
What will you actually keep after taxes and fees?
Sale price is not take-home. Deal structure (asset vs. stock sale, how the price is allocated), taxes, advisory and transaction fees, and any debt all come out before the number that lands in your account. The difference often surprises owners who anchored on the headline price.
Modeling the after-tax result before you go to market, in coordination with your CPA, is how you avoid leaving money on the table. We don't provide tax advice; we coordinate the planning so the personal outcome is clear.
When should you start exit planning?
Earlier than most owners think, ideally years before a sale. The runway is when value gets built and taxes get managed. Waiting until a buyer calls narrows your options and usually shrinks what you keep. The most expensive exit is an unplanned one.
If a specific number or situation in your own life is on your mind, that's the best place to start. The thinking above is general by design; the value comes from applying it to your business, your timeline, and your goals.
Where this fits in your plan
AI was used in the development of this content.
This article is placeholder content pending compliance review and pre-approval; the final, published version will be reviewed for compliance before going live. It is educational only and not individualized financial, tax, or legal advice. We coordinate with your CPA and attorney and do not provide tax or legal advice. Investing involves risk, including the possible loss of principal. Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC.