Thinking about selling your business? Looking for investors? Applying for a loan? All of these moments have one thing in common: you’ll need to know what your business is actually worth.

Figuring that out isn’t always straightforward, especially if you’re emotionally invested or unsure what counts (and what doesn’t). That’s where a business advisor for valuation can make all the difference.

Whether you’re making a big move or just want clarity on where things stand, here’s why working with a business advisory accountant is key to getting an accurate business valuation.

What is a Business Valuation?

Put simply, a business valuation is the process of working out how much your business is worth. It’s not just about profit margins or assets—it’s a detailed look at your entire operation, from financial performance to market position, future growth potential, and more.

An accurate valuation gives you a solid foundation to make decisions with confidence. It’s useful for everything from securing funding and attracting buyers to succession planning or simply setting goals for the future.

But getting that number right? That’s the tricky part—and where professional advice matters.

Evaluating Your Own Business

It’s tempting to try evaluating by yourself—especially if you’re confident in your numbers. But valuing your own business comes with a few challenges.

For one, there’s natural bias. It’s hard to be completely objective about something you’ve built yourself. You might place too much value on sweat equity, overlook weaknesses, or be unsure how to account for future potential.

There’s also the technical side. A proper valuation involves more than multiplying your annual profit by a number you found on Google. Different industries have different valuation methods, and things like goodwill, liabilities, market trends, and growth prospects all come into play.

By working with a business advisor for valuation, you’ll get an expert perspective that’s independent, thorough, and tailored to your unique situation. It’s not just about the number—it’s about understanding how and why that number came to be.

What Should I Prepare?

Getting ready for a valuation means pulling together a few key things. The more information you have to give your business advisor for valuation, the more accurate the outcome will be.

Your last few years of financial statements are essential, including profit and loss statements, balance sheets, and tax returns. You’ll also want to gather information about your assets and liabilities, current cash flow, any debts, and projections for the future.

If you’ve got operational data (like staff numbers, customer retention rates, or supplier contracts), that’s helpful too. And if there’s anything unique about your business—like a long-term lease, IP, or a standout market niche—that should be shared.

This is where working with a business advisory services team really pays off. They’ll guide you through the process, help you compile the right documents, and explain what each number means in context.

Clarity is Worth It

Valuing a business isn’t just about putting a price tag on what you’ve built. It’s about understanding where you stand, what’s driving your success, and where you can grow from here.

Much like working with a business tax accountant makes tax time easier, a business advisor for valuation means you get a clear, accurate, and honest picture, without the stress of going it alone. Whether you’re planning your next big move or just want peace of mind, the right advisor can make all the difference.

Need help figuring out how to accurately value your business? Reach out to our JCB Accounting team to get started.