Don't Sell Yourself Short.

True wealth isn't revenue; it's retained margin. Verify your pricing model before you sell your business or plan your retirement.

Valuation Parameters

Instant Diagnosis

Calculating...

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Net Profit

$0.00

Gross Margin

0%

Markup

0%

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Valuation Logic for the Exiting Business Owner

For senior business owners approaching exit, Gross Margin is not just a metric—it is the primary multiplier of your valuation. Buyers do not pay for revenue; they pay for efficient, scalable profit.

Many legacy businesses operate on "historical pricing," failing to adjust for modern CPI (Consumer Price Index) inflation. This results in "Phantom Profit"—where cash flow looks positive, but real value is eroding.

The "Margin Trap" in Estate Planning

If you plan to fund your retirement by selling your enterprise, a 5% deviation in margin can result in a 20-30% reduction in sale price due to EBITDA multipliers.

  • Pricing Power: Prove to buyers that your business is not a commodity. High margins signal brand authority.
  • Inventory Liquidity: Ensure your Cost of Goods Sold (COGS) accurately reflects replacement cost, not just historical cost.
  • Retained Earnings: Maximize your corporate treasury before converting to personal dividend income (T5) to optimize for the Lifetime Capital Gains Exemption (LCGE).

Vector Analysis Protocol:

Do not rely on "Rule of Thumb" valuations. Before listing your business or liquidating assets, ensure your personal and corporate balance sheets are synchronized.

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