Is Your Valuation Delusional? What Buyers Really Pay For in Georgia
🧠 Summary
Most business owners overestimate what their company is worth, often using revenue multiples or personal retirement goals as benchmarks. In reality, buyers focus on SDE, risk, and growth potential — not revenue. This article explains how to correct valuation myths and position your Georgia business for a premium exit.
📝 The Reality Check: Why 4x Revenue Is a Fantasy
I’ve spoken with hundreds of Georgia business owners who believe their business is worth four times their revenue.
Here’s what I ask every time:
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“What’s your real profit after adjustments?”
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“Can the business run without you?”
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“Would a buyer pay this price and still make money?”
Spoiler: The answer is usually no.
🧮 What Buyers Actually Use to Value Your Business
Forget revenue. These are the 5 factors that drive real value:
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SDE (Seller’s Discretionary Earnings) – Clean, recast, and believable.
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Owner Involvement – If you are the business, buyers discount the price.
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Industry Risk – Is your business in a stable sector or a volatile one?
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Customer Concentration – If one client makes up 40%+ of your sales, risk rises.
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Growth & Scalability – Buyers pay more for something they can grow.
💰 Case Example: The $2 Million Illusion
An Atlanta contractor making $2.5M in revenue assumed his business was worth $2M.
Reality?
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SDE = $480,000
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Owner ran all the bids
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No GM or second-in-command
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1 customer = 52% of sales
Result: The real market value was $1.1M, not $2M. We showed him how to increase that to $1.6M in 12 months with system upgrades and a transition plan.
🎯 How VR Business Sales Atlanta Helps You Hit the Right Target
At VR Business Sales Atlanta, we specialize in:
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Real, market-based valuations
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Buyer-prepped financials
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Deal structures that close
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Coaching you on how to build to exit
We’ve seen what buyers actually pay — and we reverse-engineer the steps to help you get there.
❓ Q&A: What Georgia Sellers Ask Most
Q: What multiple should I expect in Georgia?
A: Most main street businesses sell between 2.5x and 3.5x SDE. If your business has recurring revenue, systems, and low owner dependency, you can push toward the high end.
Q: How can I increase my value before selling?
A: Eliminate owner dependency, improve margins, document SOPs, and build a middle management layer. Those four moves can boost your price by 30–50%.
Q: Do buyers really look at SDE more than EBITDA?
A: Yes — for most businesses under $5M in revenue, buyers focus on SDE, not EBITDA. SDE reflects owner benefit and is easier to benchmark.
Q: Can I still sell if my books are messy?
A: Yes, but expect a lower multiple. Clean books signal a professional, transferable business. We can help you fix this before going to market.
🔍 Thinking of Selling in 6–18 Months?
Let’s start with a realistic, data-backed valuation — not a guess.