Any number can be written on a page. The question that decides whether it is worth anything is simpler: can it survive someone trying to tear it apart? That is what “defensible” means, and it is the difference between a figure that helps you and one that embarrasses you.
The moment that matters
Your valuation exists for one moment: when a sophisticated buyer, or a court, or the IRS looks at your number and pushes back. “Where did this come from? Why this multiple? Why these comparables?” A defensible valuation has an answer for every one of those questions, documented and sourced.
A number without that backing folds the instant it is challenged. And it always gets challenged, because the other side has money on the line.
What makes a number defensible
- Every assumption is written down and explained, not just asserted.
- The comparables are real and relevant, not cherry-picked headlines.
- The methodology follows recognized standards, the kind a third party will recognize and respect.
- The work is done by a credentialed analyst who can stand behind it under questioning.
Why the cheap version fails here
One business owner bought a quick, low-cost valuation to save money. When the buyer’s team probed it, the assumptions had no support behind them, and the number collapsed under a few pointed questions. He ended up needing a proper valuation anyway, after the cheap one had already weakened his position. The discount on the front end cost him far more on the back end.
Defensible is not a luxury feature. It is the entire point. A number you cannot defend is just an opinion with a dollar sign in front of it.
Talk it through
When the number has to hold up under real scrutiny, the M1 Valuations team builds it to be defended, with every assumption documented. When you are ready, we will walk you through how we get there.