Practical guide
AI Business Valuation Explained: What It Can and Cannot Tell You
AI business valuation is best understood as a fast analysis layer, not an automated replacement for a valuer, accountant or broker. It can organise information, apply a consistent framework and surface questions quickly.
What goes into an indicative estimate
The useful inputs include industry, location, revenue, SDE or profit, years trading, owner dependence, customer concentration, lease security, staff structure and growth trend. Better inputs create a better starting point. Missing or optimistic information creates false precision.
Why a range is more honest than one number
Business value changes with risk. A conservative case can reflect weaker trading, a neutral case can reflect maintainable earnings, and an optimistic case can reflect credible improvements. These scenarios are not promises; they show how assumptions affect the result.
What AI cannot verify by itself
An AI report cannot automatically confirm whether a seller's figures are accurate, whether a lease can be assigned, whether customers will stay or whether a market claim is true. Those questions require documents, conversations and professional review.
Use OpenBiz's AI valuation tool to get a structured first view. Save the assumptions with the report, update them when the business changes and use the gaps as a due-diligence checklist.