Why did my accountant's valuation come in so different from what a broker quoted me?

These are usually answering two different questions, even though both produce a dollar figure. An accountant, particularly a Chartered Business Valuator, generally applies a formal valuation methodology — analyzing normalized earnings, assets, and comparable transaction evidence — to estimate a defensible, standalone value of the business. A broker's number is often closer to an informal opinion of what the business might list for or attract in the current market, shaped by what similar businesses have actually sold for recently and a sense of buyer appetite, without the same depth of documented analysis behind it.

Neither number is "wrong" by definition — they're measuring different things. A formal valuation is built to withstand scrutiny, useful for a formal sale process, a shareholder dispute, or tax purposes, while a broker's opinion is built to help you set an initial asking price and gauge interest quickly.

Neither should be treated as fixed. A published multiple or rule of thumb only ever tells part of the story, and your business's specific financials, customers, contracts, and risks are what actually determine what a buyer will pay. If the gap between the two figures is large, ask each what assumptions they used, and have a business lawyer help you understand what each number is actually meant to support before relying on either one.