09/10/2026
Most business owners are off by 2–3× when they guess what their company is worth.
This isn't about bad businesses. It's about good ones — proven concept, real revenue, real customers.
Here's why: valuation isn't a number. It's a range. And where you land inside that range is decided before you ever sit across from an investor.
Same industry, same $2M in earnings — one business sells at 5×, another at 9×. That's an $8M swing on identical financials.
What actually moves the number (swipe through for the breakdown 👉):
→ Recurring revenue commands a 40–60% premium
→ Crossing $10M EBITDA nearly doubles your multiple
→ Owner-dependent businesses trade at the bottom of every range
→ Capital is concentrating in healthcare, AI, and recurring-revenue services
The owners who raise on their terms aren't smarter. They just knew their weak points before the first investor conversation — while there was still time to fix them.
(Earlier stage? Pre-revenue founders get priced on team, prototype, and traction — the Berkus method — but the principle is identical.)
Comment READY and our team will put together a custom Funding Readiness Report for your business: where you stand today, what would give investors pause, and exactly what to strengthen before you raise.
