Compare a Buyer Offer With a Business Valuation
An offer is more than its headline price. Compare what the buyer pays, when you receive it, what stays at risk, and what work remains for you after closing.
Make the earnings basis consistent
Check which period and earnings measure the buyer is using. Revenue, profit, owner cash flow, and cash in the bank are different figures.
Review proposed adjustments with evidence. If your role needs replacing, the buyer may allow for that ongoing cost rather than accepting the owner's current pay as the whole picture.
Identify what the price includes
Ask whether inventory, normal working capital, equipment, property, and debt are included or treated separately. Similar headline prices can describe very different packages.
Write down the assumptions before comparing offers. Otherwise, a higher figure may simply require you to leave more assets or cash behind.
Separate cash at closing from later payments
Seller financing, retained ownership, and contingent payments expose you to different risks. A promised future payment is not the same as cash received at closing.
Understand the conditions for payment, security, and the buyer's obligations. Have your advisers review the actual terms rather than relying on a verbal summary.
Account for your remaining commitments
Transition work, restrictions on future activity, warranties, and potential claims can affect the practical value of the deal.
Consider the time and responsibilities you are willing to retain. A plan for a complete exit may not fit an offer that depends on several years of your involvement.
Use valuation as a discussion, not a guarantee
A valuation view helps organise evidence about earnings, transferability, and market expectations. It is not a promise that a particular buyer will pay that amount.
An independent adviser can help compare the offer with the business and your goals. Start by describing the operation and revenue range, without uploading the buyer's confidential documents here.