You’ve decided to explore selling your software company, and now you’re hearing vastly different valuation estimates from different advisors. One firm tells you your business is worth $25M-$30M, while another confidently claims $40M-$50M. Who’s right?

The truth is, neither of them know yet—because no advisor determines your company’s value. The market does.

Why Valuations Vary So Much

The reason for these discrepancies is simple: different advisors make different assumptions about who will buy your business and why.

• A financial buyer—like a private equity firm—will focus on revenue, profitability, and historical performance. They’ll apply standard industry multiples and view your company as a standalone entity.
• A strategic buyer—like a competitor or tech company—looks at how your business fits into their ecosystem. If your technology fills a gap in their offering or gives them a competitive advantage, they may pay a premium for synergies.

If one advisor assumes only financial buyers, they’ll estimate a lower range. If another assumes a strategic acquirer willing to pay for synergies, they might suggest a much higher number. But here’s the key: these are just hypotheticals. Until you test the market, it’s just guesswork.

The Market Determines the Price—Not an Advisor

No matter how experienced an advisor is, they can’t dictate what your company will sell for. They can estimate, but valuation isn’t a theoretical exercise—it’s the outcome of a competitive process.

The only way to maximize valuation is to:

• Engage multiple buyers to create competitive tension.
• Tell the right story that highlights your unique strengths.
• Negotiate strategically to structure not just a high price, but the best deal terms.

Advisors who guarantee a valuation upfront are making an assumption, not a commitment. The real work—the work that actually gets you a premium price—happens when buyers are at the table, competing.

Why Process Matters More Than a Number

It’s tempting to go with the advisor who gives the highest estimate, but valuation isn’t a promise—it’s a process. The only way to truly know what your company is worth is to run a structured, competitive sale process that brings the right buyers to the table.

At Hemisphere Partners, we don’t just throw out numbers—we execute a process that proves them. If you’re serious about maximizing value, let’s talk about how we can help you get the best deal, not just the best guess.