Over the years, many entrepreneurs develop a very clear perception of the value of their company.
This assessment is shaped by direct experience, personal sacrifices, long standing relationships and the skills built over time.

This perception is understandable and, in many cases, legitimate. However, when the company is exposed to the market and to potential buyers, a significant gap often emerges between perceived value and market value.

The critical point is not that the market “fails to understand” the business. Rather, it applies different evaluation criteria: more standardised, less emotional and focused on the company’s future ability to generate results independently.

Understanding the reasons behind this gap is essential to avoid unrealistic expectations, negotiation deadlocks and transactions that collapse before any real discussion begins.

Personal value vs transferable value of the company

One of the most common mistakes in company sale processes is the overlap between the value of the entrepreneur and the value of the business.

The founder’s experience, intuition and personal relationships are often key drivers of growth. From a buyer’s perspective, however, the central question is different: how much of that value can be transferred after the transaction?

When a company relies too heavily on the direct involvement of the entrepreneur, the perceived risk increases. Not due to a lack of competence, but because the market evaluates the company’s ability to operate and grow without the founder.

In such cases, what represents a strength for the entrepreneur may translate into a reduction in market value.

The role of emotion in the perception of company value

Years of work, personal sacrifices and difficult decisions create a strong emotional bond with the company. This involvement inevitably influences how value is perceived.

The issue arises when the expected price includes elements that the market does not directly reward.

The market does not pay for personal sacrifice.
It pays for the company’s ability to generate future cash flows, margin stability, scalability of the business model and effective risk management.

When these dimensions are confused, the gap between seller and buyer widens and negotiations risk becoming confrontational.

Intangible assets and market value

Brand, reputation, commercial relationships and know how are often cited as key drivers of company value. In many cases, they truly are. However, the market recognises value only in intangible assets that are structured, measurable, defensible and replicable.

For example, a commercial relationship managed exclusively by the entrepreneur has a very different value compared to a contract based customer portfolio supported by an organisation. Likewise, unformalised know how remains tied to individuals rather than to the company.

This difference has a direct impact on valuation and applied multiples.

Risk perception in company valuation

Another frequently underestimated factor is how risk is perceived by the buyer.

Entrepreneurs often consider certain operational weaknesses as “manageable” because they have dealt with them for years. The market, on the other hand, sees them as potential sources of future instability.

Customer concentration, unformalised processes, unclear governance or centralised decision making all affect market value, even when financial results are solid.

Company valuation is not a snapshot of the past. It is an estimate of the future.

The entrepreneur’s positioning in the sale process

The entrepreneur’s experience is often central to the value narrative. However, if it is not translated into structure, processes and shared capabilities, it can become a negotiation constraint.

The market does not penalise strong entrepreneurs.
It penalises companies that cannot operate without them.

Making the founder’s role scalable, defining post transaction governance and demonstrating business continuity are key steps in transforming entrepreneurial experience into a marketable asset.

How to align perceived value and market value

Reducing the gap between perceived value and market value does not mean lowering expectations. It means understanding how the market reads the company.

Working in advance on organisational structure, business clarity and value transferability allows entrepreneurs to approach a sale process with greater awareness and stronger negotiating leverage.

When entrepreneurial experience becomes a company asset rather than a purely personal one, the dialogue with the market changes and often, so does the final transaction value.