What a Buyer Will Pay for Your Business — and What They Won't | Books & Backbone

A buyer doesn't pay for your revenue. They don't pay for your reputation or your vision. They pay for what they can verify — from your books.In this solo episode of Books & Backbone, Donna Harris breaks down exactly how small business valuation works from the buyer's perspective. She knows this territory from both sides — as a tax preparer and bookkeeper who has prepared financial records for business sales, and as an active acquirer of bookkeeping and accounting firms who is doing due diligence right now.She covers what SDE is and why it's the only number that matters in a purchase negotiation, why the multiple is a measure of risk and what moves you from 2x to 4x, what buyers find in due diligence when books weren't prepared for scrutiny, and why the timeline problem — cleaning up your books the year you want to sell — is the most expensive mistake an exiting business owner can make.Three years of clean records. Recurring revenue. Documented systems. Team depth. Financial clarity. These are the five things that move the multiple. This episode tells you how to build them.Donna Harris, MBA, MAccCEO, Bookkeeping Made Simple LLCmysimplebookkeeping.com | 801-692-0032