How much is my business worth?

For most owner-operated businesses, value equals adjusted earnings (SDE) times an industry multiple — commonly 1.5× to 5× SDE depending on industry, size, and risk. Enter your numbers in the calculator above for a range, then adjust for customer concentration, owner dependence, and the cleanliness of your books, which can swing the figure 20% or more in either direction.

What multiple do small businesses sell for?

Most main-street, owner-operated businesses sell for roughly 2× to 4× SDE. Larger, more systematized businesses that sell on EBITDA typically command 4× to 7×. Specific ranges vary by industry — home services 2.5×–4.5× SDE, professional services 2×–3.5×, manufacturing 3×–5×, and SaaS often 3.5×–6× (or 2×–6× of ARR).

What is the difference between SDE and EBITDA?

SDE (Seller’s Discretionary Earnings) adds one full owner’s salary and owner perks back to profit, and is used for owner-operated businesses where the buyer takes the owner’s seat. EBITDA treats a market-rate manager’s salary as a real cost and is used for larger businesses that already run without the owner. As a rule of thumb, use SDE under ~$1M of profit and EBITDA above it.

How do I value a business with no profit?

Use a revenue multiple or an asset-based approach. Recurring-revenue and high-growth businesses (like SaaS) are routinely valued on a multiple of revenue or ARR even while unprofitable. Asset-heavy businesses can be valued on net assets (total assets minus liabilities) as a floor.

How can I increase what my business is worth before selling?

Lift the multiple, not just the profit. Build recurring revenue, diversify away from any customer over ~20–25% of sales, reduce the business’s dependence on you, clean up and document your financials and add-backs, and show a steady or growing trend. Each of these is something a buyer prices in, and most can be improved in the 12–24 months before a sale.

Business Valuation

Business Valuation Calculator: What Is Your Business Really Worth?

Estimate what your business is worth in about a minute with the calculator below — then see the real industry multiples, a fully worked example, and the risk factors that move the number most.

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