What Comparable Sales Say About Your Business
The Valuation Game
Comparable sales, or “comps,” are one of the most direct ways to understand how the market might value your business. By looking at recent sales of companies similar in size, industry, and performance, you can get a sense of what buyers are willing to pay. Comps don’t set your price, but they help anchor your expectations. If your business is outperforming others in key areas that could support a higher multiple. On the other hand, if there are weaknesses, buyers will factor those in. Reviewing comps alongside your financials and market position helps set a more accurate and defensible valuation when it’s time to sell.
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