I’m Michelle Regner, founder of Business Brokers of America. I help business owners navigate every step of the sale—from organizing financials to negotiating the right deal—so they feel supported, informed, and in control. My mission is simple: to make sure you exit on your terms—with confidence, clean financials, and a strategy that protects what you’ve built.
If you’re preparing to sell your business, you’ve likely asked yourself: What’s it really worth? The answer depends on more than revenue—or how hard you’ve worked.
At Business Brokers of America, we help sellers move past emotional attachments and price their business based on real-world metrics, so they can attract serious buyers and exit with confidence—and a deal that reflects the true value of what they’ve built.
We get it. Your business is your baby. You’ve poured your life into it—the long hours, the personal sacrifices, the tough seasons. But the market doesn’t pay for sacrifice. It pays for performance.
Time and again, we see smart, successful owners price themselves out of a deal because they’re leading with emotion or outdated rules of thumb. Buyers aren’t just crunching numbers. They’re reading between the lines. They want proof, not projections. And when your numbers don’t hold up under scrutiny, they walk away.
At BBA, we don’t let sellers fall into these traps—here’s how we guide them toward pricing strategies that actually close deals.
Related: Planning to sell your business in 2025? These SBA loan changes could make or break your deal
Here’s how to price a business for sale and avoid common valuation traps
1. Pricing with emotion, not data
Too many sellers price based on what they want or need—not what the business is actually worth.
“Sometimes an owner will value their business based on what they need for retirement. They’ll say things like, ‘Oh, I really need a million dollars to retire, so I’ve got to get that out’—even though it has nothing to do with what their business actually values.”
Why it matters: Pricing based on personal needs or emotional attachment doesn’t hold up in negotiations. Buyers care about what the business actually produces.
This is one of the biggest reasons so many business owners overestimate their company’s value. They confuse emotional equity with financial reality, and that makes the asking price feel inflated to buyers.
2. Valuing based on revenue, not profit
Buyers focus on net profit, not top-line revenue. If your margins are thin, your valuation will be, too.
“I’m making $10 million. This business has to be worth X. And then you look at their bottom line—it’s like, ‘Oof, you’re actually only bringing in $300,000.’ Where’s all the money going? Where’s all the fat in between?”
Many sellers assume their business is worth far more than market reality because they misunderstand how to calculate business valuation. Value is always based on profit. Rarely will you see a business valued off top-line revenue.
3. Pricing based on future potential
Future growth can help boost value, but it shouldn’t drive your asking price. Savvy buyers want historical proof, not hypotheticals.
“I’ll forecast out the next year for the client, and I might do a weighted average and include it because they’re growing—but I’m not going to price the whole business on that projection. Realistic buyers don’t like to see that. They get pretty freaked out by it.”
Wondering how to determine the value of a business today? Start with real financials, not feelings. Buyers want to see what the business has actually produced—not what you hope it will.
4. Using the wrong calculators (or none at all)
Make sure you’re calculating using industry standards, not generic tools.
There are countless tools online—business valuation calculators, company valuation calculators, and more. Many rely on one-size-fits-all multiples that don’t reflect the nuances of your business.
That’s why BBA built our own—grounded in real industry comps and closed deal data.
“We’ve accounted for all industry data… and we’re also sourcing real deal data in the calculator. It’s not a general statement. We’re still giving you a range, but that range is really based on us getting to know your business.”
It’s not about plugging numbers into a spreadsheet—it’s about understanding what really drives value.
Want to test yours? Try our free business valuation calculator →
Still, even the best company valuation calculator is just that—a starting point. You need expert interpretation to understand what makes your business stand out.
5. Overvaluing equipment and assets
Buyers care about current market value—not what you originally paid years ago. Be realistic about depreciation.
“They’ll say, ‘I spent $500,000 on these trucks… I want to get $500,000.’ That’s not how it works. They don’t quite understand the full value of their assets.”
This mistake often happens in equipment-heavy industries like construction or logistics, where sellers expect dollar-for-dollar payback. Buyers simply don’t view it that way.
6. Ignoring the importance of clean financials
Messy books and buried expenses erode trust. Normalize your financials and keep detailed records of all add-backs to give buyers confidence.
“You’re just trying to save on taxes, but when you go to sell it, you want your profit to be as high as possible. If you’ve been running personal expenses through the business… that might reduce your tax burden, but it makes things harder when it’s time to sell.”
Buyers want to see a clear picture of profitability. If your financials are cluttered with personal expenses or lack proper documentation, they’ll second-guess everything. At BBA, we help sellers normalize their numbers, clearly outline add-backs, and present a clean, credible valuation.
Bottom line: Clean records aren’t a bonus—they’re a baseline.
7. Skipping professional valuation support
Without expert guidance, sellers often leave serious money on the table. Brokers know what your business is worth in today’s market.
“We had a lead come in—an electrician company, which are highly sought after these days. It was a mom calling for her son. She gave me some back-of-the-napkin numbers, and I told her, ‘Yeah, your business is probably valued around three [million], maybe a little more, based on what you’re telling me—but we should do a full valuation.’
A few weeks later, I followed up and she said, ‘Oh, my son sold it. He had a friend-of-a-friend come to him and gave him a sweet deal for two million in all cash.’ I was like—what? Congratulations, but what happened? These buyers out there are trying to do deals directly, and sellers don’t realize they’re leaving money on the table.”
Why it matters: This kind of off-market, fast-cash deal may seem appealing—but without a full valuation and strategy, sellers risk missing out on hundreds of thousands (or more).
The biggest risk isn’t the buyer—it’s going to market without a plan. And when you try to do it alone, a lot can go wrong.
Final thoughts: Price smart, sell stronger
If your business is overpriced, serious buyers won’t bite. And the longer it sits on the market, the more leverage you lose.
At BBA, we help you get it right from the start by building a pricing strategy that gives you clarity, confidence, and the deal you deserve.
These mistakes are common, but they’re also avoidable. With the right strategy, we’ll help you protect what you’ve built and move on to what’s next—on your terms.
More about Michelle Regner, Founder & CEO of Business Brokers of America
Michelle Regner is a powerhouse entrepreneur and business strategist with a proven track record of founding and successfully exiting three SaaS technology companies. As the Founder and CEO of Business Brokers of America, she’s on a mission to elevate business brokerage standards nationwide, also serving as President and Managing Partner at Business Brokers of Utah.
Drawing on her firsthand experience launching and scaling startups, Michelle offers unparalleled insight into the realities of small business ownership. She specializes in advising entrepreneurs on growth strategies, exit planning, and digital transformation, having coached dozens to leverage digital marketing, overcome obstacles, and build scalable operational systems.
A Silicon Valley native, Michelle’s entrepreneurial journey began after earning her B.A. in Business from Notre Dame de Namur University and a stint at Morgan Stanley. Her impact quickly gained national recognition, leading to features in Fast Company and being named one of the top business leaders by The Economist in 2014. She’s also a sought-after speaker and previously hosted a five-year podcast series.
