How can I get an honest opinion of value before committing to sell my business?

By Michael D. Rubin, CEO & Founder · September 2026 · 811 words

Ask a sell-side advisor for a free, confidential opinion of value based on your actual financials, with no obligation to engage them, and judge it by the reasoning behind the range rather than by how high it is. An honest opinion comes as a low-to-high range, explains what pushes your company toward one end or the other, and tells you what a buyer will question.

You do not need to commit to a sale to learn what your company is worth. You do need to be careful about who you ask and what they gain from the answer.

Why opinions of value are not all honest

An advisor who wants your business has a reason to quote high. A big number in the first meeting feels good, wins the engagement, and then gets lowered months later after buyers respond, by which time you are committed and your company has been shown to the market. The opposite happens too: a buyer who approaches you directly may suggest a low value, because they are the one paying.

The defense is to ask how the number was reached. If the answer is a vague rule of thumb, or a figure given before anyone read your financials, treat it as a sales pitch rather than an opinion. Ask, too, whether any payment is required before you receive it; an honest first look at value should not need an upfront fee.

What an honest opinion looks like

An opinion you can rely on has a recognizable shape. Look for all of the following:

• It is based on at least three years of financial statements and tax returns, plus the current year to date
• It shows a recast: reported profit adjusted for owner pay, personal expenses and one-time costs, arriving at adjusted EBITDA (earnings before interest, taxes, depreciation and amortization)
• It gives a range rather than one figure, and explains where you sit within it
• It names the weaknesses a buyer will price in, such as customer concentration or dependence on the owner
• It is consistent with the market: for companies with $3 million to $100 million in revenue, most often three to seven times adjusted EBITDA

What to bring, and what to ask

Bring three years of profit and loss statements, balance sheets and tax returns, your year-to-date results, and a list of the expenses you believe a buyer would not carry. Then ask pointed questions. Which of my add-backs would a buyer accept, and which would it reject? What would move me to the top of the range? What would a buyer discount? Would you take this company on, and if not, why not?

Be honest in return. An opinion is only as good as the information behind it. If revenue is concentrated in one customer, if there is a pending dispute, or if some income never reached the books, say so. A confidential meeting is the right place to raise it; due diligence is the worst place for a buyer to find it.

An advisor who is willing to tell you the company is not ready yet is usually one whose number you can trust. Our long read on what your business is worth explains the drivers behind the range, so you can test what you are told.

Get a second view without starting a sale

Asking more than one advisor is reasonable, as long as each conversation stays confidential and none requires you to sign an engagement to get an answer. Compare the reasoning, not just the midpoint. If two opinions differ widely, ask each firm to explain the gap; the difference usually comes down to one or two add-backs or assumptions about growth, and the explanation will tell you who has done the work.

Keep in mind that an opinion of value is a market-based estimate for sale planning. A formal third-party valuation is a written report prepared to professional standards, used when a partner buyout, estate plan, lender or court requires it. For deciding whether to sell, an opinion of value is usually enough; if you need the formal report, our business valuation service provides one separately.

How MDR & Associates gives an opinion of value

Our discovery meeting and opinion of value are free and confidential. After reviewing three years of financials, we give you a low-to-high range and walk you through the reasoning. There is no obligation to engage us. If we do not believe we can sell your company for maximum value, we decline the engagement and tell you why. The range is yours to keep whether or not you ever sell, and many owners use it to plan the next few years of the business.

If you do sell with us, the fee is paid only when the company sells; our fees page explains how it works. The fastest first step is the free online valuation snapshot.

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