Why This Matters in 2025
If you own a business in Michigan—whether it’s in Troy, Detroit, or anywhere in Metro Detroit—you’ve likely been asked this question: “What’s your business worth?” In 2025, with interest rates shifting, buyers being more selective, and succession planning at the forefront for many owners, knowing your valuation isn’t just about selling—it’s about making better business decisions now.
This guide walks you through how valuations work, what’s driving buyer behavior in Michigan, and how you can position your company for maximum value.
The 3 Main Valuation Methods (Plain English Edition)
Market Multiple Method
Compares your business to recent sales of similar companies in your industry and region. Think of it as “real estate comps” for businesses.
Income Method
Projects your future earnings and discounts them to today’s value. Buyers want predictable, growing profit streams.
Asset-Based Method
Looks at the value of your tangible and intangible assets minus liabilities. Often used for asset-heavy companies or liquidation scenarios.
Get Your Michigan Valuation Range
See a realistic value range in minutes, plus top factors that move your number.
Michigan-Specific Value Drivers
- Industry mix – Automotive supply chain, healthcare, and tech are hot.
- Owner dependence – The less the business needs you to run daily ops, the better.
- Workforce retention – Skilled labor shortages mean a trained, loyal team adds major value.
- Local customer concentration – Contracts with local anchor companies can raise perceived stability.
Detroit Spotlight: The Local Premium
Detroit’s economy has a unique mix of legacy industries and growing startups. A business with a strong Detroit story—deep community ties, local supplier relationships, or a role in the region’s revitalization—can often command a premium from buyers who see long-term opportunity in the city.
Example: A manufacturing company in Detroit that’s invested in green tech upgrades may attract not just local buyers but also ESG-focused investors nationwide.
The Valuation Mistakes to Avoid
- Using outdated financials – Always present your trailing 12 months.
- Hiding add-backs – Document every owner perk, one-time expense, or non-recurring cost.
- Going to market unprepared – Buyers pay more for businesses that look “ready to sell.”
How to Get Your Free Michigan Business Valuation Estimate
We’ve built a free, no-obligation valuation tool tailored for Michigan businesses. In less than 5 minutes, you can:
- Get a value range
- See how you compare to similar businesses
- Identify your top 3 risk factors
Ready to Take the Next Step?
Find out how ready you are or talk to an advisor about your options.