Why Your Agency Isn't Worth What ChatGPT Says

In this episode, Mark walks Peter through the difference between a price and a valuation, why free valuation tools work like a nearly free oil change, how a Main Street broker prices a business differently from a middle-market banker, and what he tells buyers to push back on before an LOI. He explains why the seller's reaction to an honest question about risk is a filter you can use early, and why an owner who gets valued before talking to a buyer starts the data room anyway. He also gets specific on what moves a number. Two service businesses with the same $1 million in EBITDA can be worth very different amounts depending on owner dependency. Peter brings him a live deal where trailing-twelve EBITDA jumped from $1.3 million to $2.4 million, and Mark lays out what to check before negotiating the multiple. CHAPTERS 00:00 — Intro 00:47 — Why "what's my business worth" is a loaded question 01:30 — Free valuations, brokers, and the oil change problem 03:40 — Credentials, and why a report has to withstand scrutiny 05:05 — Narrative and Numbers: what a valuation needs to know 09:06 — Price vs. value: Main Street brokers and middle-market bankers 14:12 — Proprietary search: get the owner valued first 17:48 — ChatGPT valuations and the 24x earnings problem 22:23 — Same EBITDA, different business: owner dependency 27:54 — Add-backs, negative add-backs, and tax avoidance 31:16 — Observable evidence: reviews, lead sources, replacement cost 34:35 — When trailing-twelve EBITDA doubles 38:42 — Forecasts, valuation approaches, and multiples 44:34 — The one question to ask before you get attached Please subscribe and hit the like button. It means a lot, and I'm putting out videos every week! If you have any questions at all, fire away. If you think you or someone you know should be on our show, or you just have a question, email us at info@agencyacquisitionsandexits.com. Follow Peter on Instagram: / peterlang Follow Peter on LinkedIn: / peterclang Follow Mark on LinkedIn: / mark-ahern-a7665428 Mark's website: https://ampbusinessvaluations.com Free 21-day Programmatic M&A Training: https://digitalagencybusiness.com/