Your Brillian valuation is an evaluation of your business's current market value — what a buyer would likely pay for it based on your financial data, industry comparables, and current market conditions. Here's what goes into it and how to think about what it means. However, a final price is often dictated by a combination of value, competitive demand to acquire your business, and the structure of a sales transaction.
How the valuation is calculated
Brillian applies two standard professional appraisal methodologies:
Income-based approach — estimates value based on the earnings the business generates, using normalized cash flow (an adjusted view of earnings that accounts for owner compensation structures, one-time expenses, and other factors) and a discounted cash flow model. The discounted cash flow evaluates how many dollars someone will pay today for the dollars they would get in the future.
Market-based approach — references comparable private market transactions within your industry, business size, and geography, to arrive at a market-appropriate multiple.
These are the same methodologies used by professional appraisers — Brillian applies them using your actual financial data and a large dataset of SMB performance information and private market transactions.
What it tells you
Your valuation is a planning tool. It tells you what your business is worth today, which affects how you plan, how you borrow, and how your business fits into your broader financial picture. For many business owners, the business is their largest single asset — having a current, methodology-based figure makes planning conversations with your advisor significantly more concrete. The valuation should also be used to understand how a third-party will evaluate the business and what the key levers are that they focus on so that you we can work on increasing the value of your business.
What it isn't
A Brillian valuation is not a formal appraisal, a guaranteed sale price, or a prediction of what you'd receive in a transaction. An actual sale involves additional factors — buyer demand, deal structure, timing, and due diligence — that no valuation can fully predict. Think of it as a rigorous starting point, not a final answer.
Want to go deeper?
Brillian includes a Valuation Presentation with your report that walks through the methodology and conclusion in detail. Brillian's team of CPAs and certified appraisers are also available to answer questions and explain the findings during your review session.