Mark Osborne explains why business owners often overestimate what their company is worth. For most closely-held business owners, the business makes up 70-80% of their net worth, yet they guess at its value instead of getting a formal appraisal. That gap between guess and reality causes real disappointment when the actual number comes in lower.
As asset manager, you're managing that asset that, as you mentioned earlier, could be worth 70, 80% of someone's total net worth. They have wealth advisors to help them on the wealth side. They probably have a real estate person. They know from Zillow at any given time what their house is worth. We all think we know what the rest of our assets are worth, and they pencil in a number that comes from a variety of different places on what they think their business is worth. But it's not verified, it's not validated. And that's where there's a big gap and disappointment, I would say, once someone comes to that, that point where they, they say, oh no, my business is not worth what I thought it was going to be worth. So we try to get in front of that. And by offering— I mean, this is not a plug, but affordable valuations, because we don't think that valuation costs should cost a fortune. Right.
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