Understand what your business is worth in today's market based on industry multiples
Business value is typically driven by a multiple of your EBITDA or SDE. This estimator uses updated industry averages to help you find a range. Note that factors like recurring revenue, customer concentration, and management depth can push you to the high or low end of these ranges.
Provide basic financial data to estimate your value
EBITDA vs. SDE
Smaller businesses (under $1M profit) are usually valued on Seller's Discretionary Earnings (SDE), which includes owner salary and perks. Larger mid-market companies are valued on EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
The Multiple
Multiples vary by industry. A stable service business might trade at 3x, while a high-growth SaaS company might trade at 8x+. The efficiency of your operations and the depth of your team determine where you fall in the range.
Pro Tip: The Multiple Gap
Improving your business systems can often increase your multiple by 1-2 points, which can add millions to your final sale price.
Speak with a business broker or M&A advisor to get a precise valuation for your specific company