If you’re a small or mid-sized business owner scaling fast, thinking about selling, or just curious—“What’s my company really worth?”—this blog is for you. In the latest episode of the Built to Exit Podcast, Jason Sisneros breaks down business valuation with hard-won insights most consultants don’t have and gurus won’t admit.
Jason has bought, sold, turned around, or exited dozens of companies across multiple industries. He’s not here for theory—he’s here to teach business owners how to play the game of valuation right. Here are the seven essential strategies he covers in the July 2025 podcast—and why knowing your business’s value is about more than just dollars and cents.
Why Business Valuation Isn’t Optional—Even if You’re Not Selling Yet
The biggest myth Jason busts is that business valuation is only for people ready to sell. That’s dead wrong. Every business owner will exit someday—whether through sale, succession, or an unexpected event. The question is whether that exit will be profitable or painful.
Statistically, less than 7% of businesses ever sell. Most owners just shut the doors—or worse, leave behind legal, financial, or operational messes for their families and partners. Don’t let that be your story. The earlier you understand the value drivers in your business, the sooner you can control your price, your timing, and your terms.
Business Valuation Strategy #1 – Comparable Companies Analysis (CCA)
What are businesses like yours selling for? That’s the heart of this method. You examine financial multiples (like EBITDA or revenue) from public companies and adjust based on your business’s size, growth, and risk.
Jason warns that hype can skew these numbers. Look past inflated markets and media headlines to uncover true comparables. Otherwise, you’ll risk pricing yourself out of deals and sabotaging your own exit.
Business Valuation Strategy #2 – Precedent Transactions
This strategy dives into actual closed deals. It’s the truth serum of business valuation—no projections or hopeful guesses, just what real buyers paid for real companies like yours.
Jason points to infamous missteps, like the DeLorean collapse, where arrogance and ignorance tanked value. The lesson? Learn from others’ exits—both the wins and the wrecks.
Business Valuation Strategy #3 – Discounted Cash Flow (DCF)
DCF is about projecting your future profits and calculating their value in today’s dollars. It’s powerful—but dangerous if you’re overly optimistic. Jason compares it to the Pony Express betting big, only to be blindsided by the telegraph. Forecast boldly, but ground your numbers in reality.
Business Valuation Strategy #4 – Adjusted Book Value
For asset-heavy companies (manufacturing, real estate, logistics), updated balance sheets tell the story. But many owners forget to factor in hidden value—intellectual property, proprietary systems, custom code, and data sets. Don’t undervalue what makes your business unique.
Business Valuation Strategy #5 – Liquidation Value
This is your “in-case-of-emergency” number. What would you net if you shut everything down tomorrow? It’s sobering, but essential to know—especially if your business is vulnerable to health issues, divorces, lawsuits, or sudden downturns.
Business Valuation Strategy #6 – Replacement Cost
This method asks: What would it cost to build your business again from scratch? It’s relevant for highly technical or capital-intensive businesses. But don’t forget that reputation, culture, and relationships can’t be replicated with money alone.
Business Valuation Strategy #7 – Leveraged Buyout (LBO) Appeal
If private equity is your ideal buyer, this is key. A stable, cash-generating business that can service debt and grow is gold. But be warned—buyers will put your operations under a microscope. Any weakness becomes a reason to lower the offer or walk.
Mindset Matters: What Most Business Owners Get Wrong
Jason sees too many owners screw this up because they:
- Wait until they’re burned out to think about exit
- Assume emotion is a strategy
- Fall for “industry multiple” myths
- Let bad advisors ruin deals
- Ignore that valuation is dynamic—not fixed
Instead, Jason teaches a system. Built to Exit isn’t a feel-good idea—it’s a blueprint to ensure you don’t leave millions on the table.
What to Do Now: Business Valuation Is the Beginning
- Get Clarity on Your Endgame
Is it a fast exit? Family handoff? PE deal? Each has different valuation implications. - Run All 7 Strategies
Even if some don’t apply right now, they reveal blind spots, opportunities, and risk factors. - Control Price, Timing & Terms
That’s how you win. That’s what Built to Exit was made for.
Get the Tools You Need
✅ Free Assessment Tool at BuiltToExit.biz
✅ Weekly Aftershow Q&A on X/Twitter
✅ Contact Jason’s team
Final Thought:
You don’t need to be ready to sell. You need to be ready to win. Master the rules of business valuation before the market—or life—forces you to.