As a business advisor, I often get involved in exit and succession planning. I have discovered that business brokers are similar to realtors and other industries. Some are excellent and some are horrible. No offense to anyone.

My clients want the highest possible return for their years of time, resources and capital investment. Unfortunately, too often, they do not have the books to accurately demonstrate the value, the customers do business with the owner/manager and the assets have been unmanaged and have less value in a sale than they do to an ongoing concern.

All businesses should operate as though they are trying to sell, even when they aren't (yet). Most do not and have a hard time with the comps and values provided by a CPA, Broker or Shadetree facilitator.

Valuation depends on the industry, the market and the present condition of the company. Ratio's, comps and other measurements always apply to some extent but in the end, the business must be prepared, polished up and ready to put on the market.