Mark Osborne explains why business owners' informal expectations about sale prices often don't match real market transactions. Owners typically base valuations on peer conversations rather than how actual deals work, leading to misaligned expectations when selling.
I think that part of it is expectations, that the business owner has their own number in their head, or they've talked to their buddies on the golf course and they have similar types of companies and they tell them what they've sold for and what the multiple was and all that. And they expect that they're gonna go and sell for that same price. Well, that's not how it works. In the real world,
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