Most businesses overestimate the value of the business.
The value must be negotiated between the investor, the business and their various advisers. In saying that, I don't think businesses should sell themselves short. This owner, a conference venue organiser, sought a working Business Angel to replace his old partner. Have a clear plan to target areas of growth in a disciplined manner. Many businesses are prone to say they just need the money but a true assessment of the expansion plans will reveal many tasks for the Angel.