The Short Answer
Ideally, business owners should get a valuation annually, or at minimum every two to three years, plus whenever a major event or decision is on the horizon. Most owners only think about valuation when they're ready to sell — and by then it's often too late to improve the number. Treating valuation as a periodic checkup, like a physical for your business, gives you the information to build value and make smart decisions over time.
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The Case for Regular Valuations
Your business is likely your largest asset, yet most owners have no idea what it's worth year to year. A regular valuation tells you whether value is growing, what's driving or dragging it, and how you're tracking toward your goals. It turns value-building from guesswork into a measurable process — you can see the effect of reducing owner dependency, growing recurring revenue, or improving margins on your actual number.
When You Should Definitely Get One
- 1 to 3 years before a planned sale — to identify and act on value improvements
- Before or during exit planning and retirement planning
- For a partner buyout or change in ownership
- For estate and succession planning
- After a major change — strong growth, a downturn, a big new contract, or loss of a key customer
- For financing, buy-sell agreements, or divorce
The Pre-Sale Valuation Is Critical
If you take one valuation seriously, make it the one 1 to 3 years before you sell. That's the window where knowing your number lets you actually improve it — reducing owner dependency, cleaning up financials, and building recurring revenue before you go to market. Owners who value early and act on it consistently sell for more than those who wait until they're ready to list. See how to increase value before selling.
Is It Worth the Effort?
A professional valuation is a modest investment relative to what it protects — the value of your largest asset. For many owners, a periodic valuation (and the roadmap it provides) pays for itself many times over by guiding decisions that raise the eventual sale price. Even an informal annual check-in with a broker keeps you oriented. If you've never had your business valued, that's a good place to start.
Frequently Asked Questions
How often should a business be valued?
Ideally annually, or at minimum every two to three years, plus whenever a major event or decision is coming up, such as a planned sale, exit or estate planning, a partner buyout, or a significant change in the business. Regular valuations act like a checkup for your largest asset.
When should I get my business valued?
Definitely one to three years before a planned sale, before or during exit and retirement planning, for a partner buyout or ownership change, for estate and succession planning, after major changes like strong growth or losing a key customer, and for financing, buy-sell agreements, or divorce.
Why get a valuation if I'm not selling?
Because it tells you whether your largest asset's value is growing, what's driving or dragging it, and how you're tracking toward your goals. It turns value-building into a measurable process and prepares you for opportunities or events, so you're never caught without knowing what your business is worth.
What's the most important time to value my business?
One to three years before you sell. That window lets you act on the valuation, reducing owner dependency, cleaning up financials, and building recurring revenue, to actually improve your number before going to market. Owners who value early and act on it typically sell for more than those who wait until listing.
When Did You Last Value Your Business?
Martin Navarro provides confidential valuations for planning or selling, whenever you need to know where you stand. No obligation.
Request a Free Valuation Call or text: 818-633-3254 · 365navarro.martin@gmail.com