Free tool · Selling or valuing

What is your business worth?

A rough value range based on what buyers of small businesses actually pay for: earnings that continue after you leave.

Your business

Use last year’s numbers.

From your financial statements.
Salary or draws for one working owner.
e.g. personal car, one-off repair, legal case.
What it might sell for
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rough value range for the business

Seller’s discretionary earnings
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Multiple used
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As share of revenue
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A rough range, not an appraisal. Equipment, stock and debts change the final price.

Free, no obligation

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How the numbers are worked out

Seller’s discretionary earnings = net profit + owner pay + personal or one-time costs Multiple = range for the type of business + adjustments (owner dependence, recurring revenue, trend), capped at ±0.6 and 4.0× overall Value = earnings × multiple

Questions

How are small businesses valued?

Most owner-run businesses are priced as a multiple of seller’s discretionary earnings (profit plus the owner’s pay and personal or one-time costs). Small businesses commonly sell for about 1.5 to 3.5 times that figure.

What raises the value?

Profit that doesn’t depend on you, recurring revenue, clean books, growth and a business a buyer can understand in an afternoon.

Is this a formal valuation?

No. For a sale, a loan or a partner buy-out, use a chartered business valuator or a business broker.

Is my data sent anywhere?

No. Everything is calculated in your browser. Nothing is stored or sent unless you use the form at the bottom of the page.

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