Can You Give me a Quick Opinion of the Value of my Business?

Can you review my financials and provide a brief estimation of value? I’m not looking for a formal appraisal or valuation. I simply need a quick figure. With your evident expertise, I’m optimistic you can assess my business and offer a rough estimate of its worth. Is this feasible?

Valuing a business involves both qualitative and quantitative considerations. It’s not possible to glance at a profit and loss (P&L) statement—a quantitative aspect—and accurately gauge a company’s value within a few minutes. Conducting a thorough assessment of potential values for a company demands time due to the myriad factors at play.

Understanding a company’s value necessitates analyzing its standing in comparison to others within its industry. Both the growth prospects and risk factors of a business are vital to comprehend. Even a seemingly minor factor—like a new competitor or consistent revenue growth—can sway a company’s value by up to 50% or more.

In my earlier career, I used to provide free opinions of value. However, I soon realized that this wasn’t beneficial to business owners. As the saying goes, you get what you pay for. In these instances, all I could offer were educated guesses, much like tossing a dart at a board—I hit the mark about half the time and missed entirely the other half.

Why? The lack of compensation for my time meant I couldn’t delve deeply into understanding the businesses and their industries. The valuation of a company involves many considerations and queries.

For instance, consider a scenario where an owner claims their manufacturing business generates $1,000,000 in EBITDA. It might seem straightforward—many manufacturing businesses sell at a 5.0 multiple, indicating a value of around $5 million. However, this example is riddled with complexities.

What if the top three customers contribute 70% of the revenue? What if revenue has consistently declined by 5% annually over the past three years? What if it’s growing at 20%, 30%, or 40% per year? Are gross margins decreasing? Has the recent revenue increase been due to relaxed credit policies? Does the business heavily rely on the owner with no management team in place? Are key employees unwilling to remain? Is the industry experiencing a downturn? Has a well-supported competitor recently entered the scene? Does the owner demand an all-cash payment? Is revenue unpredictable? Is EBITDA inconsistent? Is there deferred maintenance? And the list goes on.

Numerous questions, and we’ve got answers. To gain insight into our approach toward business valuations, read further.

Our Process for Valuing a Business

Valuing a company involves analyzing numerous factors. This comprehensive assessment allows us to provide an objective opinion on its value. Initially, with limited information, we can typically estimate the value within a range of 30% to 50%. However, it’s crucial to note that this range only extends in one direction—translating to a total value range of 60% to 100%.

As we delve deeper into the company’s specifics, we can usually narrow the range to 10% to 20%.

For a 30% to 50% value range (with no knowledge of your business): If your company is valued at $5 million, our estimate might range between $2.5 million and $7.5 million. Yet, without insights into your business, pinpointing where it falls in this range isn’t feasible.

For a 10% to 20% value range (with knowledge of your business): If your company is worth $5 million, our estimate might span between $4 million and $6 million. In this scenario, armed with in-depth knowledge of your business, we can specify where your business likely stands within the range. We can highlight the specific factors impacting its value and precisely guide you on how to influence that value.

Why speed and accuracy rarely coexist

Imagine an affiliate network posting €1 million in EBITDA. If we applied the industry’s headline multiple for traffic-driven assets—say 4.5×—we might call it a €4.5 million business. Yet what if 75 percent of revenue flows from a single Nordic operator whose licence renewal is uncertain? What if Google’s last algorithm update halved organic traffic overnight? Or customer acquisition cost has climbed 30 percent year-on-year? Any of these realities would slash the multiple. Conversely, diversified GEOs, bullet-proof compliance, recurring revenue, and proprietary technology could justify 6–7×.

Because of these moving parts, my first pass on an unfamiliar company spans an accuracy band of roughly 30–50 percent. Once I have granular data, I can typically narrow that to 10–20 percent—tight enough for board decisions on refinancing, recap, or a structured sale.

Our disciplined, six-step valuation framework

CasinosBroker’s process is designed for small- and mid-cap iGaming operators turning between €0.5 million and €10 million in annual EBITDA. In outline:

1. Data harvest. We request three to five years of P&Ls and balance sheets, AR/AP ageing, and monthly GGR/NGR splits.

2. Strategic questionnaire. A five-to-ten-page checklist probes GEO mix, bonus cost, licence status, traffic channels, CRM sophistication, K-factor, and more. A follow-up call clarifies the narrative behind the numbers.

3. Normalisation. Together we adjust for one-offs, owner add-backs, high-water marketing, and deferred revenue so that cash earnings mirror economic reality.

4. Deep‐dive analytics. Our internal model flags margin drift, cohort decay, churn, SEO volatility, and regulatory milestones.

5. Market benchmarking. We layer in precedent transactions, public-company comps, and current appetite from strategic consolidators and PE funds.

6. Model synthesis and workshop. We table a valuation band, defend each assumption, and map tactical levers that can move the midpoint north.

End-to-end the exercise consumes at least ten consultant hours—but it arms founders with actionable insight, not just a number.

*Assumes a mid-market iGaming operator; actual ranges vary by subsector.

Pros and cons of a rapid estimate

Pros

• Zero cost and near-instant feedback.

• Useful as a casual “sanity check” for personal planning.

Cons

• High error margin can mis-guide pricing strategy.

• Ignores intangible value (licences, tech stack, user data).

• Risks anchoring negotiations at an arbitrary figure buyers will undermine.

A structured valuation, by contrast, costs time—and usually a fee—yet becomes a strategic tool: it quantifies upside, highlights deal killers early, and supports a defendable narrative in front of acquirers and lenders.

Questions to Ask When Valuing a Business

Here are several questions we pose to thoroughly evaluate a company’s value:

• Is there a distinction between cash and accrual-based financials?
• Is accrual accounting being properly executed?
• Are owners receiving market-level, below, or above-market salaries?
• Are family members involved in the business? Are their salaries below, at, or above the market level?
• How many hours per week do owners dedicate to the business?
• What are the company’s growth prospects?
• What are the risk factors associated with the company?
• How does the company compare to its industry peers?
• What are the gross margins like in comparison to industry standards?
• Does the company possess valuable intellectual property?
• Is revenue steady, increasing, or decreasing?
• Are there concerns about customer concentration?
• Is there a presence of recurring revenue?
• Does the business rely on a substantial, repeat customer base?
• Can the business be easily relocated to another geographic area?
• Is the seller open to financing part of the purchase price?
• Is the real estate owned or leased? If owned, is rent paid at market rate?
• Have employees signed employment agreements or non-compete clauses?
• How robust is the management team, if one exists?
• How long has the business been operating?
• Is the likely buyer an individual, strategic buyer, or financial buyer?
• Is the seller aware of recent industry acquisitions?
• How accurate are the financial and accounting records?
• Is any equipment leased? If so, is it a capital or operating lease?
• How much working capital is needed to run the company?
• What’s the competitive landscape? Saturated, consolidated, fragmented, small businesses?
• How does technology impact the business and industry?
• What’s the customer attention/attrition rate?
• What’s the employee turnover rate?
• Has revenue displayed consistent growth recently?
• Is the business subject to seasonality, cyclicality, or counter-cyclical trends?
• Are gross profit margins steady, increasing, or decreasing?
• Is the seller willing to sign a non-compete? If yes, for how long?
• What entry barriers exist in the industry?
• What’s the annual investment in capital improvements? (Note: sophisticated buyers subtract an amount for working capital)
• How do average transaction values compare with industry peers?
• Does the business possess trade secrets?
• Are there customer contracts in place?
• Is the lease above or below market? Is the property for sale?
• Are there ongoing product developments that can boost business value?
• How do the business’s margins compare with industry standards?
• Are accounts receivable in good shape?
• How scalable is the business?
• Can marketing methods be automated or are they overly reliant on the owner’s personal efforts?
• Are key employees willing to remain?
• Does the business carry sufficient insurance coverage?
• What inventory accounting method is used? Has this significantly affected earnings?
• Is any inventory obsolete? If so, has it been written off?
• Can pricing be increased? Notably, price hikes directly impact the bottom line.
• Has the business adjusted trade credit to boost short-term revenue?
• Is there any ongoing litigation?

Frequently asked questions

Q1. How long does the formal process take?

Roughly two weeks once we receive complete data; faster if your accounts are clean and questions answered promptly.

Q2. Do you rely on tax returns?

Only as a cross-check. Management accounts reveal trends and seasonality far better.

Q3. What multiple do iGaming companies trade at today?

Affiliates typically fetch 3–6× EBITDA, B2C casino/sportsbook platforms 6–9×, and B2B software suppliers 8–12×, subject to growth, licence footprint and recurring revenue ratios.

Q4. Will a buyer pay extra for my Curaçao licence?

Not likely. Tier-1 regulated revenue (e.g. UKGC, MGA, Ontario) commands a premium; grey-market exposure discounts value.

Q5. Can I increase the valuation before going to market?

Yes—diversify traffic, lock-in key staff, secure multi-year supplier contracts, and shift toward regulated GEOs. Each of these actions lifts the multiple more than cutting cost ever will.

Your business is one of your largest assets. Treat its valuation with the same rigour you would employ when staking seven figures on the Super High Roller tables. If you are contemplating a sale, recap, or minority investment, let’s start with a structured assessment and a frank conversation about how to move your enterprise to the upper end of its value band. Contact CasinosBroker for a complimentary scoping call.