Many private-business owners overestimate the value of their business, says an article on Axial by Al Danto, “Business Valuation Misconceptions.” This is a particular problem when the owner wants to sell. The sellers, of course, want the highest valuation possible when they sell, but their misconceptions about value makes a successful sale less likely. For example, business owners think that other companies in their industry with similar sales and revenue averages will have the same valuation. Of course, valuers know this is simply not true! The averages can be the same, but what about trends? A company with downward trends will have a different value than one with upward trends. Knowing how a buyer values a business and what drives a valuation up or down is, therefore, critical for an owner to understand. The article gives a good summary of how buyers evaluate acquisition targets.