Most of Your Business Value Is Invisible

How to Uncover, Package, and Maximise Intangible & Goodwill Value When Selling Your Business

Most business owners preparing for sale focus first on the obvious metrics—turnover, EBITDA, net assets, working capital. These are important, of course. But they rarely tell the full story. In fact, if you’re preparing to exit, you need to understand one thing above all else:

Most of your business value is invisible.

At VEXUS, we’ve advised on hundreds of SME transactions and consistently see the same truth: the greatest uplift in sale value comes not from squeezing another few thousand onto your earnings, but from identifying and professionally presenting your intangible assets and goodwill in a way that resonates with the right buyers.

Here’s how that works—and why ignoring it can cost you dearly.

The Hidden Engine Room of Value

Every business has tangible assets—premises, stock, vehicles, equipment, and cash on hand. These are straightforward to value. They sit on your balance sheet. But intangible assets—those not directly visible in your accounts—are the true drivers of buyer appetite and therefore final deal value.

Some examples:

Intangible Asset	Why It Matters
Brand Recognition	Reduces buyer marketing risk and accelerates growth
Loyal Customer Base	Indicates predictable revenue and high lifetime value
Recurring Income	Drives stability and enhances valuation multiples
Proprietary Systems or Processes	Offers scalability and competitive moat
Supplier and Channel Relationships	Reduces onboarding time and improves margins
Reputation & Reviews	Impacts trust, conversion, and future client wins
Strong Team Culture	Reduces key-person risk and supports transition

In today’s market, these hidden strengths often make up the majority of what a buyer is willing to pay for. But they only become assets if they are surfaced, substantiated, and presented persuasively.

Why Most Sellers Undervalue Themselves

There’s a very British habit—particularly among SME owners—of understatement. Many struggle to see the value they’ve built over years because it doesn’t show up on the balance sheet.

For instance:

• The loyal staff member who holds half the client relationships.

• The customer service process that drives 40% of repeat sales.

• The reputation you’ve nurtured in your niche sector for 20 years.

These things matter deeply to a buyer. But if you leave them out of your sale narrative, the buyer won’t assign them value. Worse, they may view them as risks rather than strengths.

The result? A lower offer, more stringent deal terms, or a sale that fails to attract quality buyers at all.

The Role of Goodwill: Bridging the Gap Between Price and Value

“Goodwill” is often misunderstood. In legal and financial terms, it’s the difference between the sale price and the net tangible assets of the business. But in commercial terms, it’s much broader:

Goodwill is the premium a buyer is prepared to pay for your business over and above its book value—based on trust, future potential, and perceived opportunity.

It’s what transforms a 4x profit multiple into a 6x multiple.

But goodwill must be earned and evidenced. You can’t just say “we’ve got a good reputation”—you must show how it translates into pipeline, margins, and growth potential.

That’s where many sellers fall short—and where experienced advisers can make all the difference.

Tangible Results from Intangible Strength

Consider two businesses with identical financials—£1.5m turnover, £300k EBITDA, no debt, and similar asset bases.

• Business A presents itself with a basic set of accounts, a few bullet points on customers, and a loosely written executive summary.

• 
  

• Business B works with VEXUS to prepare a comprehensive buyer-ready pack that highlights:

  • An 8-year track record of 10% year-on-year growth

  • A 90% repeat business rate

  • A proprietary CRM with 4,000 qualified leads

  • Google rankings that dominate their sector

  • Five-star online reviews and sector awards

Guess which business achieves a better deal?

The answer isn’t just about polish. It’s about converting unseen value into saleable, provable, buyer-relevant assets.

Turning Intangibles Into Negotiation Power

Buyers don’t pay for history. They pay for potential.

Your role is to build the bridge between your past success and their future upside. That bridge is constructed from:

• A clear articulation of value drivers

• Well-structured presentation of IP, systems, and relationships

• A compelling Information Memorandum that doesn’t just inform, but sells

• A valuation that justifies the goodwill and pre-empts objections

• Competitive tension to drive buyer appetite and pricing

It’s not about inflating your price—it’s about making the case for why your business is worth more than a standard formula.

At VEXUS, we specialise in making that case.

Our Process: Revealing and Realising the Invisible

Every business has a story. Our job is to refine and present that story so that the right buyer sees its full value.

Our approach includes:

1. Discovery & Value MappingWe work with you to uncover every aspect of hidden value—operational, strategic, and brand-related.

2. Market Positioning & Narrative DevelopmentWe help you shape a compelling, evidence-based value proposition that resonates with serious acquirers.

3. Tailored Buyer TargetingWe introduce your business only to buyers who can see and leverage your intangible value—often trade buyers, private investors, or specialist funds.

4. Defensive Deal StructuringWe structure negotiations to ensure you get paid fairly for both the visible and invisible value you’ve built.

The goal? Not just a deal. A deal that reflects the true worth of your life’s work.

Final Thoughts: The Best Time to Start is Now

If you're thinking about selling your business in the next 12 to 36 months, now is the time to start planning. Value creation isn't something that happens at the point of sale—it’s something that’s built up, step by step, over time.

The earlier you start uncovering your hidden value and positioning it strategically, the more leverage you’ll have when it matters most.

Don’t let invisible value remain unseen. Let us help you bring it into the spotlight.

📞 Ready to talk? Start a confidential conversation with one of our senior dealmakers today.

Contact VEXUS

VEXUS – Specialists in business sales, mergers, and exits for UK SMEs.

Experienced. Strategic. Trusted.