Is the business worth more than the income it pays me?
Updated 16 October 2026
A business that pays you well and a business worth buying are not the same thing. The gap between them is usually visible in the books.
The business is worth more than its income to you when earnings are transferable, add-backs are documented, records are clean and timely, and revenue is neither concentrated nor unpredictable.
The four places to look
A buyer pays for earnings that survive your departure
Income that depends on your relationships, your judgment, or your hours is income a buyer discounts heavily. The question to ask is what the business would still earn if you were not in it.
Adjusted earnings only count if they are documented
Owner compensation above market, personal expenses run through the business, and genuine one-off costs are all legitimate add-backs. But every one has to be supportable from the records. Undocumented add-backs are not negotiated down in diligence, they are removed.
Clean records raise the multiple and shorten the process
Books that reconcile, close on schedule, and produce consistent statements shorten diligence and reduce perceived risk. Books that do not invite a discount, a longer earn-out, or a withdrawn offer. This is the most direct link between bookkeeping and enterprise value.
Concentration and predictability are read from the same numbers
Customer concentration, revenue that recurs versus revenue that has to be won again, and margin stability across periods are all assessed straight from your financials. They are visible only if the books are structured to show them.
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What happens next
Reading about it and having it done are different things. Here is exactly what happens if you want the second one.
- The call takes thirty minutesYou describe the business and where the numbers are letting you down. We give you an expert view of your situation, and what we would start with. There is no pitch deck.
- We look at the fileYou give us read access to the books as they are. We come back with what is wrong, what it will take to fix, and whether the answer is bookkeeping, controller work, or something else.
- We send a written scope and a priceIt lists what we do each month, what you get, the date it lands and the fee. We agree it before anything starts, and it does not change unless you agree.
- We take over the books and close the first monthWe set up access and systems and enter the opening balances. The first close lands on the date in the scope, and every one after it does too.