The Big Question Every Owner Asks

If you’re a business owner, chances are you’ve asked yourself this:

“What is my business actually worth?”

On the latest episode of The Ownership Advantage, I sat down with Kyle McCulloch—Wall Street-trained, Main Street-minded, and VP of North America at Bizval—to break down the myths and realities of business valuation. What Kyle shared may surprise you… and could save you from leaving millions on the table.

The Multiples Myth

Most owners assume their business is worth “x times revenue” or “x times profit.” It’s simple, easy to calculate, and thrown around at every networking event.

The truth? Multiples are only a sense check—a quick way to see where the market is right now. Real valuation requires digging deeper into the unique risk factors inside your business, such as:

• How dependent the business is on the owner

• Customer concentration (one big client or a broad base?)

• Financial health and debt load

• Longevity and stability of cash flow

As Kyle explains:

“A multiple only holds true if market conditions stay exactly the same. And they never do.”

The Danger of Owner Dependency

Here’s a hard truth: if everything lives in your head as the owner, your business has no transferable value.

Think about it—if you got sick, or simply wanted to walk away, would the business keep running smoothly? If the answer is “not really,” your valuation just took a nosedive.

The solution?

• Document your systems

• Train your team

• Build independence from the founder
  

Buyers and investors pay a premium for businesses that can run without the owner at the center of everything.

Diversify or Risk It All

Another hidden risk is over-reliance on a single client. If one customer makes up 40%+ of your revenue, your entire business is exposed.

Smart owners reinvest those big contracts into sales and marketing to diversify their client base. That way, losing one customer doesn’t cripple the business.

Remember: valuation comes down to two levers—cash flow and risk. The stronger and more stable your cash flow, and the lower your risk, the higher your business will be valued.

Timing Your Exit: Sooner Than You Think

One of the biggest myths? That exit planning starts when you’re ready to sell.

In reality, you should start years in advance.

Kyle recommends allowing at least 3–5 years to prepare—cleaning up financials, shoring up operations, and building systems takes time. Think of it like rehabbing a house: if buyers see too many problems, they’ll move on to the next deal.

Annual (or even semi-annual) valuations—now more accessible with platforms like Bizval—give you a running scorecard on your company’s worth. Just like a health check, they show you what’s working and what needs fixing before it’s too late.

The Not-So-Secret Sauce: Lean Into the Boring

The best valuation drivers aren’t flashy. They’re the “boring” things—clean books, documented SOPs, diversified revenue, and a strong team.

As Kyle puts it:

“Lean into the boring stuff. That’s where the biggest gains are made.”

Bottom Line: If your business is your biggest retirement asset, don’t leave its value to chance. Start preparing now—document your systems, diversify your revenue, and track your valuation regularly.

When you build a business that can thrive without you, you’re not just creating freedom for today—you’re unlocking a premium exit tomorrow.