Dig In Deep
I Want to Sell My Business – But What Is It Actually Worth?
How much is your business really worth — and would a buyer actually pay the number you have in your head?In this episode of the Dig In Deep Podcast, Liam Moore puts the questions to Mark Kennedy as they dig into business valuation, preparing a company for sale and the things that can dramatically increase — or destroy — the value of a business.Using construction and plant hire businesses as practical examples, they look beyond the simple idea of multiplying EBITDA by four or five and calling that the valuation.They discuss:• The different ways to value a business• EBITDA multiples and maintainable earnings• Why two businesses with identical EBITDA can be worth completely different amounts• How to value a plant hire or asset-heavy company• Fleet values, asset registers and depreciation• Why you can't simply add the value of your machinery to an EBITDA valuation• Cash, debt and working capital• Customer concentration and recurring revenue• Owner dependency and why it can reduce your multiple• What buyers actually investigate during due diligence• The records and paperwork businesses often get badly wrong• What makes a buyer reduce their offer — or walk away completely• Why cutting investment before a sale can actually reduce business value• How far in advance you should prepare a company for sale• What to start doing today if you want to sell your business in three yearsThe big question isn't simply:“What is my business worth?”It's:“What would make somebody want to buy my business — and what would make them confident enough to pay more for it?”This episode is sponsored by Built By ME Group, creators of the Business Value Index™ — a structured approach to understanding the factors that create, protect and potentially increase the value of a business.The Business Value Index™ looks beyond a headline valuation to examine areas including financial performance, assets, customer concentration, management strength, owner dependency, systems and processes, recurring revenue, risk, growth and overall saleability.Whether you're thinking about selling a plant hire company, construction business, family business or SME, planning succession, considering an acquisition or simply want to build a stronger and more valuable company, this episode is worth a listen.️ Dig In Deep PodcastConstruction. Plant Hire. Business. Opinions. Stories. And the occasional bit of absolute nonsense.Subscribe and let us know in the comments: if you were offered the right money tomorrow, would you sell your business?#BusinessValuation #SellingABusiness #PlantHire #ConstructionBusiness #EBITDA #BusinessValue #BusinessForSale #DueDiligence #Entrepreneur #SME #BusinessOwner #DigInDeepPodcast
