Most self-valuations rely on rules of thumb or informal comparisons that do not hold up in a real negotiation.

The risk is not just being off. It is how that number lands:

• Price it too high: You risk insulting a serious buyer or associate and shutting down discussions before they begin
• Price it too low: You leave hard-earned money on the table without even realizing it
• Lack of credibility: If you cannot support your number, your position weakens the moment it is questioned
• Internal deals: You may try to sell a portion of the business that is not yours to sell