The Myth:
The business is worth whatever the owner believes it’s worth.

The Reality:
Fair market value is based on what a hypothetical willing buyer would pay — not what the current owner emotionally believes. Sentiment, legacy, and effort don’t automatically translate into transferable cash flow.

Why It Matters:
Overreliance on owner belief leads to unrealistic pricing and failed deals.

Practical Tip:
Anchor value in objective cash flow, risk, and market data — not in emotional attachment.