What is my business really worth. When figures meet a life's work

While searching for a business to take over, we saw many dossiers. Figures, balance sheets, customer structures. And time and again that one number that seemed to decide everything: the purchase price.

There was one business. Run for almost 40 years. Solid figures. A well-established team. The seller wanted 1.5 million euros. The figures in the balance sheet? They told a different story. Realistically, the value was between 450,000 and 500,000 euros. At most.

Three times as much. Because he saw his business through different eyes than we did. He saw 40 years of work. Every investment. Every setback. Every success. We saw revenue, EBITDA, customer dependencies, modernisation needs.

Both perspectives are valid. But they lead to a question that causes many successions to fail: what is a business really worth?

Two worlds

Sellers look back. They see decades of investment, personal sacrifices, a reputation built over time, customer relationships that have grown. Their life's work.

Buyers look forward. They see future earning power, modernisation needs, market opportunities and risks, dependencies on customers or suppliers. And the question: can this be financed?

These different perspectives are normal. But they often lead to tension. And sometimes they cause successions to fail, even though both sides would actually be a good fit.

The emotional side

Back to the seller with the 1.5 million. We did not buy his business. But we understood why he set that figure. 40 years. Getting up every day. Fighting every day. For his employees. For his customers. For his family.

This emotional attachment is real. It is valid. But it cannot be expressed in euros. At least not in a way that a buyer can finance.

The question is: how much can a buyer afford? Not just financially. Also with a view to the future. If the purchase price is too high, the new owner spends years just paying off the loan. The business cannot develop. Investments stall. In the end, the business suffers.

And the other way round: how much does a seller need? Not just for retirement. Also for the feeling of handing over a life's work to good hands. For the certainty that the employees have a future. That the customers will continue to be well looked after.

Bringing these two perspectives together is the art. And it begins with an honest conversation.

What we experienced ourselves

We studied the figures. Analysed balance sheets. Compared key indicators. During our search, we had valuations shown and explained to us by M&A advisors and brokers. Why was this adjusted? Why was that calculated differently? What does this assumption mean?

It was instructive. In the end, we decided against buying the businesses that had been presented to us. And in doing so, we learned something decisive:

Either the figures came first. We received dossiers, ran the numbers, analysed. If the figures did not fit, it was over. We never met the business owner. Perhaps there were stories behind those figures. Perhaps explanations. But by then, our ears were already closed.

Or the person came first. Likeable, open, someone you could talk to easily. Then came the figures. And suddenly contracts were missing. Things remained unclear. Trust was damaged. We decided against buying in that case too.

What we were missing: both at the same time. Getting to know the person AND seeing the broad parameters. Not either-or. But both from the start.

Why the order matters

This is especially important with smaller businesses. Here it is not just about a transaction. It is about people. The seller may stay on for another six months, onboard the buyer, hand over customer and supplier relationships. The chemistry has to be right. From the very beginning.

If the figures come first and do not fit, the door closes. There is no more conversation. The person behind the figures stays invisible.

If the person comes first and the figures disappoint later, trust is damaged. One of the two feels misled. And that is not a good foundation.

What we learned from this

This is the reason BIZZqui exists today. We make exactly this possible: the first contact between person and person. With enough information about the key parameters so that both can quickly see: does this broadly fit? Does it make sense to meet and talk seriously?

With a match, a chat room opens. To say quickly: there is interest. Let us talk. When suits you?

If both say after the conversation "yes, this could work", the next steps follow. The detailed valuation. The advisors. The contracts.

But at the beginning, there is the encounter. Between people. In a real conversation.

What counts in the end

The question of business value is important. But it is not the first step. The first step is: finding each other. Checking whether the chemistry is right. Whether the expectations broadly align. Whether you can imagine walking part of the road together.

A seller who wants to hand over a life's work to good hands. A buyer who wants to take on responsibility. Both need to understand each other. Both need to respect each other. Both need to know they can rely on one another.

Only then is it worth talking about figures. About valuations. About purchase prices. About financing.

But at the beginning, there is the encounter. And it starts with a conversation.