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Scaling Up Master
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Your Company Is Worth What Someone Will Pay—So Make It Worth More
posted in Business Coaching
Adam Kreek
Most business owners assume their company’s value is tied to book value, net present value, or industry multiples. But here’s the truth:
Your company is worth exactly what someone is willing to pay for it.
A buyer doesn’t care about what you think it’s worth. They care about the risk, opportunity, and scalability of the business they’re buying. If you want to boost your valuation, you need to build a business that buyers see as an investment, not a liability.
What Really Drives Business Valuation?
Buyers assess business value in three key ways:
- Net Present Value (NPV) – How much predictable future cash flow will the business generate? If your revenue is unstable or unpredictable, your NPV takes a hit.
- Book Value – What are your assets worth? This matters for some businesses, but if your assets aren’t generating strong returns, they won’t command a premium.
- Multiples of EBITDA or Revenue – Buyers apply industry-standard multiples, but those multiples vary based on growth potential, leadership strength, and operational efficiency.
How to Increase Your Business Valuation
If you’re planning to sell, raise capital, or attract investors, your goal should be to de-risk your business and maximize future potential.
Here’s how:
- Reduce Owner Dependency – If your company can’t run without you, it’s not a business—it’s a job. Buyers don’t pay top dollar for jobs. Start succession planning now. Read: How to Finish Gracefully in a Dismissal
- Create Recurring Revenue Streams – Predictable revenue increases buyer confidence and valuation multiples. Shift from one-time sales to long-term contracts, subscriptions, or repeat business. Read: The Leadership River: Navigating Growth as a Leader
- Improve Operational Efficiency – Buyers want a well-run machine, not a mess. Tighten up financials, streamline systems, and eliminate inefficiencies. Read: How SMART Goals Drive Business Success
- Build a Strong Leadership Team – If leadership talent isn’t in place, buyers see risk. A strong team signals stability, scalability, and long-term success. Read: How Stories Build Culture and Align Values
The Bottom Line
Your business isn’t worth what your spreadsheets say. It’s worth what the market will pay.
If you want a premium valuation, start making your business:
- Less dependent on you
- More predictable in revenue
- More efficient in operations
- Led by a strong team
A business that thrives without its owner is worth more—because buyers see opportunity, not risk.
Are you building a business that’s truly valuable? If not, it’s time to start.
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Adam Kreek is on a mission to positively impact organizational cultures and leaders who make things happen.
Kreek is an Executive Business Coach who lives in Victoria, BC, near Vancouver, British Columbia, Canada, and Seattle, Washington, USA, in the Pacific Northwest. He works with clients globally, often travelling to California in the San Francisco Bay Area, Atlanta, Georgia, Toronto, Ontario and Montreal, Quebec. He is an Olympic Gold Medalist, a storied adventurer and a father.
He authored the bestselling business book, The Responsibility Ethic: 12 Strategies Exceptional People Use to Do the Work and Make Success Happen.
Discover our thoughts on Values here.
Want to increase your leadership achievement? Learn more about Kreek’s coaching here.
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