Common Business Owner Mistake #1. You’ve poured your heart and soul into your business, and now you want to capitalize on all that hard work. Unfortunately, when it comes to determining the value of your company, your friends’ opinions, standardized formulas, or your own (possibly inaccurate) valuation can lead to unrealistic expectations. You will need an independent estimate of your company’s worth to sell at the right price.

For a relatively modest fee, most investment bankers will provide you with an “opinion of value,” which is generally a very realistic current market value for your company. You can also retain a professional business appraisal firm, which, though more expensive, will use a number of sophisticated appraisal methodologies to arrive at an approximate value. The investment banker will often charge less in hopes of retaining you as a client.

In addition, the investment banker will generally credit the cost of the valuation against the fee for selling your company. Whether you work with an investment banker or an appraiser, getting a realistic valuation ensures that the proceeds from your sale will meet your future needs.