A woman looking to retire said to author and valuation expert Tim McDaniel, I need to sell my business for $2.5 million to support my country club lifestyle. The reality was that her business was worth $750,000. How could she have been so wrong? As McDaniel a veteran of over 2,000 valuation engagements and dozens of M&A deals knows all too well, most owners work in their businesses and not on their businesses. He has seen the look of surprise on client faces far too often: It s only worth that much?

In the rush of day-to-day work and decisions, business owners sometimes forget that...