Should I Get Multiple Valuations?

The Short Answer

Getting more than one valuation can be worthwhile — a second opinion helps you sanity-check the number and choose an advisor — but only if you compare them intelligently, focusing on the reasoning rather than just picking the highest. For most owners, one or two credible valuations are plenty. The key isn't the number of valuations; it's getting an honest, well-reasoned one you understand.

When a Second Opinion Helps

• You're choosing a broker — comparing valuations reveals who's realistic vs. who's inflating to win the listing
• The first number surprised you — much higher or lower than expected
• Your business is complex or unusual — multiple perspectives add confidence
• The stakes are high — it's your largest asset and a once-in-a-lifetime sale

A second opinion is a reasonable, low-cost way to build confidence before you commit to a price and a broker.

Broker Opinions vs. Formal Appraisals

There's a difference between a broker's opinion of value (a market-based estimate of what the business would sell for, often free or low-cost) and a formal, certified business appraisal (a detailed, standards-based valuation by a credentialed appraiser, which costs more). For simply selling, broker opinions are usually sufficient. A formal appraisal is worth the cost for legal, tax, estate, divorce, or partner-buyout situations where a defensible, independent number is required.

How to Compare Valuations

Don't just line up the numbers and pick the biggest — that's how sellers get lured by inflated valuations. Instead, compare the reasoning: the earnings and add-backs used, the multiple and its justification, and the comparable data. A slightly lower but well-supported valuation is more useful than a higher one built on optimism. You want the number that will actually attract buyers and close.

The Practical Takeaway

For most owners: get one credible valuation, and a second if you want to compare advisors or sanity-check the number, choosing based on the quality of reasoning. Get a formal appraisal when a legal or tax matter demands one. Above all, resist the temptation to select the highest number — an accurate price sells; an inflated one doesn't. See valuation mistakes owners make.

Frequently Asked Questions

Martin Navarro · Business Broker & M&A Advisor

Martin Navarro advises business owners across Los Angeles, Ventura, and Southern California on selling, buying, and valuing privately held companies. A U.S. Marine Corps veteran with dual CSUN degrees in Business Management and Accounting, he brings hands-on transaction experience and a straight-talking, numbers-first approach to every engagement. Bilingual in English and Spanish.