EBITDA is one of the most commonly quoted figures in business valuation. It appears in broker marketing, Heads of Terms, and boardroom discussions. For many owners, it becomes the headline number they focus on when thinking about value. The problem is simple. EBITDA is useful, but it is not definitive. In many cases, it is not even the most important measure. Relying on EBITDA alone can lead to unrealistic expectations, poor decision making, and disappointment when real buyer

Customer concentration is one of the first issues serious buyers focus on when assessing a business. It is also one of the most misunderstood. Many owners assume that having a small number of large customers automatically damages value. Others dismiss the risk entirely, arguing that long standing relationships offset any concern. The truth sits in the middle. Customer concentration does not make a business unsaleable, but it does change how buyers assess risk, structure deals

In many SMEs, the most valuable assets never appear on the balance sheet. Intellectual capital — the knowledge, processes, experience, and relationships that hold the business together — is often the true driver of future earnings. Yet most owners underestimate its importance until they prepare for an exit, valuation, or EOT transition. Buyers, however, scrutinise it closely. Understanding how to assess and present intellectual capital is essential for establishing a credible

Most business owners overestimate the value of their company long before they decide to sell. When the time comes to take the business to market, reality can be disappointing. The truth is simple. A business is only worth what a buyer is prepared to pay, and avoidable mistakes often undermine that value long before negotiations begin. At BusinessValuation.co.uk we regularly see businesses lose significant value because owners have not prepared properly or have misunderstood

The reality of valuation gaps Many business owners are surprised when a buyer’s offer comes in lower than expected. It is a common friction point in SME transactions and one that can derail a deal if not handled with clarity and preparation. A valuation gap is rarely about one side being right or wrong. More often, it reflects two very different perspectives on risk, return, and future performance. Buyers assess value cautiously. Sellers tend to look at potential. Bridging th