“What’s My Business Worth?”

by RMP Advisors LLP | April 22, 2026

The question matters less than the context behind it

Who’s Asking, and Why That Changes Everything

When business owners ask “What’s my business worth?” they’re often asking several different questions at once:

•       The banker’s question: How much sustainable cash flow can support debt payments? They’re focused on repayment risk, not growth potential.

•       The buyer’s question: What am I acquiring, and what risks come with it? They’re thinking about what happens after you leave.

•       The owner’s question: What has all the work put into this been built in terms of value? And is it enough to fund the next chapter?

These are fundamentally different questions. Knowing what different stakeholders look for and addressing those factors proactively helps business owners shape better future outcomes.

Rules of Thumb and Their Limits

Most owners carry an internal sense of value, built up from:

•       Industry benchmarks: “Businesses like ours sell for 3x EBITDA.” Heard at a conference, passed around peer groups, etc.

•       Comparable sales: A competitor sold a few years ago, and that number served as an anchor point.

•       Retirement math: Working backwards from what you need to exit comfortably.

None of these are wrong. But they’re incomplete, especially in a market where lenders are more cautious and buyers conduct deeper due diligence.

Consider two landscaping businesses, with the following attributes:

Same industry, same top-line number, so they should have the same value, right?

Company B would command a higher valuation. The difference? Perceived risk due to different customer concentrations. And risk is the primary driver of value. One contract renewal could end Company A’s story. That’s what buyers and lenders are really pricing.

Better Questions Lead to Better Results

Instead of “What’s my business worth?”, here are the questions that lead to real insight:

•       How would a bank assess our business today?

•       What are the risks a buyer would be concerned about?

•       How dependent is the business on me?

•       What would it take to transfer this business without me in the picture?

These questions help you go beyond a static number and serve as a roadmap for strategic planning.

Takeaway

Understanding how lenders, buyers, and markets view your business early in the process gives you time to address risks, strengthen value, and position the business for ideal outcomes on your terms.

If this raised questions about your own business, please reach out to discuss how we can help.