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.
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.
Want a second opinion on these numbers?
Send us your numbers. We’ll reply with the two things that would raise the value most.
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.
Want a second look at the numbers?
Strategy and pricing, operations, digital tools: our three consulting practices. A free call first.