Why Q4 is the Sweet Spot for Business Valuations

Claudia Luquerna

Welcome back to Transitions! I'm Claudia—

Ramzi Daklouche

And I'm Ramzi. And uh, today we're taking on a topic that sounds, I dunno, kinda boring if you just read the words, but honestly—if you squint at it from the right angle—it’s way more exciting. I promise!

Claudia Luquerna

That is, like, the most backhanded sales pitch for a podcast topic I’ve ever heard. Ramzi, you are not inspiring confidence here.

Ramzi Daklouche

Alright, alright, let’s try again: Today we’re talking business valuations and—hear me out—why getting yours done in Q4 is basically like giving yourself a cheat code for 2026. Power up, business owners!

Claudia Luquerna

You know, that's actually better. But, I mean, “cheat code”? Does anyone under 35 even know that reference? Kids these days...

Ramzi Daklouche

My nephew had to ask me what "rewind" meant last week, so yeah, we’re, uh, definitely dating ourselves. But I figure if you’re listening to a show about exit planning, valuations, I bet you remember cheat codes—and probably floppy disks, too.

Claudia Luquerna

Ah, the golden age—emojis couldn’t save us back then. Okay, let’s get down to it: Every business owner I meet thinks about what their business is worth, like, all the time. But the number in their head? Almost always totally disconnected from reality.

Ramzi Daklouche

All the time! I've had so many owners tell me, "I think it's probably worth two million dollars." I go, "Okay...based on what?" And usually it's, "Well, I just kinda know. It feels right. The universe told me." I mean, I wish I had that much self-assurance.

Claudia Luquerna

For the record, the universe is not a certified business appraiser. We should probably get that printed on T-shirts.

Ramzi Daklouche

Totally! Like, manifestation is great, but it’s not a financial plan. Which is why—this is all about knowing, not guessing. So, let’s try a different angle here: Claudia, you had a killer analogy last week about home appraisals, didn’t you?

Claudia Luquerna

Yeah! Getting your business valued is just like—would you ever renovate your kitchen without knowing your home value? I mean, okay, some people do, but a reasonable person? They want to know if that renovation actually adds anything when it comes time to sell.

Ramzi Daklouche

It’s spot on. Same with a business. Why pour more money, time, stress into something if you don’t know it actually makes it more valuable?

Claudia Luquerna

Exactly! And let’s keep going with that analogy: The best time to get your house appraised? Not just before selling, but before you decide where to put your renovation budget. Like, the appraiser says, "Don’t bother with a fancy pool in this neighborhood—upgrade the kitchen instead." That’s real ROI.

Ramzi Daklouche

Right, so the business valuation points out exactly where you’ll get return. Perfect example: I had a software client, brilliant guy, was about to hire three salespeople, thinking revenue growth was everything. But the valuation showed—nope, what buyers wanted was recurring revenue and high retention. So, he pivoted—hired one customer success manager instead, shored up retention, and his company value shot up. Texted me like a teenager who won free concert tickets—at least ten exclamation points.

Claudia Luquerna

That’s the goal! Less waste, more value, no guesswork. Okay, let’s shift gears and talk about why the timing—specifically Q4—actually matters so much.

Ramzi Daklouche

So, why now? Why not just wait until January, or do this in the spring? The thing is, by Q4, you’ve got three good quarters of real data. It’s not wishful thinking or wild guesses—you see the patterns, you know exactly where things stand. You’re not, uh, taking a test on day one—you’ve already studied for nine months.

Claudia Luquerna

And there’s still enough runway left to actually DO something with what you learn. Like, the best thing about getting your valuation this time of year is you can make some fast, meaningful tweaks before year-end, and then build a full-year plan for 2026 based on real numbers, not vibes.

Ramzi Daklouche

Yeah, it’s like, financial homework—but this time, solving the problems will literally make you more money. And we can help you figure out which levers to pull. Every industry’s got unique triggers that make a business more valuable. Could be margins, could be contracts, recurring revenue, the strength of your team… It’s rarely just top-line growth.

Claudia Luquerna

Let me jump in there, because that hits close to home—a client of mine owns multiple franchise locations. Honestly, she was totally burnt out and thought, "If I just open another store, maybe everything will get better." But her valuation showed the buyers in her space didn’t care how many units you had—they cared about how profitable and self-sustaining each one was. So she doubled-down on making her two locations stronger, brought in her managers, stopped micromanaging, and—true story—got her weekends back. Business became more valuable and she was way less stressed.

Ramzi Daklouche

I love that. It’s not about being bigger just for the sake of it. Focus where it counts. And Q4 lets you see all those numbers in one place—shows you which fires to put out, which garden beds to water, you know?

Claudia Luquerna

And it’s a human thing, too. We all get stuck doing what feels urgent, confuse motion with progress. But with a Q4 valuation, you’re no longer “busy just to be busy.” You’re strategic.

Ramzi Daklouche

Exactly. And sometimes those levers you’re supposed to pull are totally counterintuitive. Like, you stop trying to grow for growth’s sake and focus on what buyers really value—maybe it’s efficiency, or processes, or, like, succession planning. All this so you aren’t running faster on the hamster wheel for nothing.

Claudia Luquerna

Which brings us to the harder part: What do you do if you get a valuation, and the number’s lower than you hoped? Because I think that fear stops a lot of people even getting started.

Ramzi Daklouche

Yeah, totally. Look, sometimes that first number is a gut punch. Maybe you thought you’d be worth ten million and it’s more like two. But I always say, bad news early is good news because you still have time to fix it—rather than finding out at the closing table when you can’t change anything.

Claudia Luquerna

It’s like, would you rather get a tough diagnosis now—or ignore it and have a bigger problem you can’t solve later? Knowledge early means options. And honestly, in my experience, even when it stings at first, most business owners are relieved. They can finally stop guessing and start working a plan.

Ramzi Daklouche

Exactly. So what’s the plan? Well, first: pull together your financials—tax returns, profit and loss, all the stuff you'd usually hand your accountant. Then, go through the business itself—how’s your team, how reliant is everything on you, what’s your customer mix? You pull the picture together and we make that the foundation for your next steps.

Claudia Luquerna

We help you look at the real drivers behind your value and build a realistic, actionable strategy for 2026. And it’s not just for the big companies. If you’re doing half a million in revenue and have been operating for a few years, you’re a great candidate. Some of my favorite success stories are businesses at that size—once they see where to make changes, it’s like someone handed them a roadmap.

Ramzi Daklouche

And here’s a really common trap—busyness isn’t value! I see folks working sixty hours, putting out fires, thinking if they just hustle harder maybe value will follow. Sometimes, all that sweat is just feeding owner dependency—making the business harder to sell, not easier. If the business falls apart when you’re not there, the number goes down. Simple as that.

Claudia Luquerna

That’s why this process matters. Whether you want to sell in five years, or fifty, knowing your numbers and knowing what drives them means you’re not leaving things to chance—or the universe. You’re making intentional moves to build something that lasts.

Ramzi Daklouche

Absolutely. We see it across all sizes. Like we said way back in episode one—it’s not just about closing a transaction. It’s about your legacy and your future, and giving yourself the confidence to make the right next move.

Claudia Luquerna

Alright—whether you’re thinking exit, or just thinking, “How do I make this next year the best yet?”, start with a Q4 valuation. And reach out if you have questions—we’re always here to help.

Ramzi Daklouche

Thanks for spending a little bit of your day with us. Next time, we’ll dig even deeper into the levers buyers look for. Until then, start building your strategy and don’t wait till the universe tells you what you’re worth!

Claudia Luquerna

Talk soon, Ramzi. And thanks to everyone listening—let's keep making those transitions with intention. Bye for now!

Ramzi Daklouche

Take care, Claudia. Bye, everyone!