I advise clients all of the time that if they find a "great" business and are paying in a market range for it that it's going to be hard to truly overpay.
Small business valuation multiples already take into account that there is a substantial amount of risk and a lot of work in buying and operating small businesses in general. I believe that even the best small businesses (those that should be worth more given their markets, history, infrastructure, lower exposure to risk, etc.) are being "penalized" when it comes to valuation just for being small businesses.
If you find one of those truly great small businesses that's priced in the same multiple range as a good business, you're already getting a "discount" just by the fact that the market doesn't efficiently value great small businesses the way it values great larger businesses.
To put it in perspective, I purchased a business over 15 years ago that I considered a "great" business. It had been operating 14 years, had been founded by gentleman who had won his university's Alumni Entrepreneur of the Year award, had never been down more than 10% in a given year and showed consistent long-term revenue growth. It also had a unique business model that gave it a substantial competitive advantage and was built around a core passion for being the "best" in its category.
While it was priced somewhat richly according to the market, it turned out to be one of the best investments I've ever made. Over the last 15 years the business has survived a fire that shut it down for three weeks, the Great Recession, and sale to a buyer that didn't work out and required us to buy the assets in foreclosure. Today the business is still going strong, nearly 30 years after it was founded.
If I had walked away because of the initial asking price I would have missed out on all that value. Instead, it probably took an extra six months to a year for the business to pay for itself after I bought it. Not a bad price to pay for greatness.