Kevin Hicks, Wilmington Market Manager for The Center for Private Business, sat down with Tommy Battle, Founder of Battle Business & Leadership Coaching, to discuss how Wilmington business owners should address their company’s valuation when preparing for a sale or merger, before raising business capital or simply for tax purposes. 

Kevin: It’s easy to understand how more assets places a higher value on a business. But are there examples of common drains that erode valuation? 

Tommy: “One of the most common drains on a business’s valuation comes from predictable traps owners fall into as they scale. These traps include over-reliance on the owner and weak financial literacy across the leadership team. Anything that makes future growth uncertain will weaken your valuation.” 

Kevin: That makes sense. So buyers are looking for accountability in every layer of a company? 

Tommy: “Exactly. Buyers pay more for a business with strong systems, recurring revenue, and a leadership team that understands the numbers and can run the company without the owner. They will discount heavily when those pieces aren’t in place.” 

Kevin: You mention predictable traps you see owners falling into when scaling. Can you speak to those pitfalls? 

Tommy: “Trying to improve with “one big move” is a trap. Instead, build momentum through small, disciplined improvements. A straightforward example of this is relying too heavily on annual reviews. I’m a fan of real-time coaching and scoreboards because otherwise performance drifts. Scaling without clarity creates fragility instead of strength.” 

Kevin: Are there visual hallmarks for success that are easy to notice but most people overlook? 

Tommy: “When you walk into a company and see employees engaged, not constantly running to the owner for direction, that’s a telltale marker of health. Small, consistent signs of organization add measurable value to a business’ valuation.” 

Kevin: What’s an easy win to implement?  

Tommy: “One thing all owners could do tomorrow to increase their valuation is to document a process thoroughly. Buyers place a premium on a business with systems, not just an owner’s memory or presence. Capture how new leads are handled, how jobs are scheduled, or how customer issues are resolved.  

That simple step reduces owner dependency and increases transferability. This is how you grow your worth as a company!” 

Kevin: Do you find owners to be too heads-down at times? 

Tommy: “Easily, the daily grind leaves little time for long-term strategy. The key is to build intentional rhythms that pull you out of the weeds—short, structured sessions to work on the business instead of just in it.” 

Kevin: How can Wilmington leaders find the time? 

Tommy: “I’d welcome any owners in Wilmington who want more guidance on long-term strategizing to join me on October 30 for a workshop on “Driving Value in Your Business.” Over my career I’ve found 18 questions that can answer where owners need to concentrate to move the needle on their growth.”