Business
Business Valuation Calculator
Estimate what a small business might be worth using seller's discretionary earnings and an industry multiple.
Result
This is a rough market-rules-of-thumb estimate, not a valuation. Real multiples depend heavily on recurring revenue, customer concentration, whether the business runs without the owner, and the state of your books. Get a professional valuation before any transaction.
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About this calculator
What is SDE and why not just use profit?
Seller's discretionary earnings adds back the owner's salary, benefits and one-off costs, because a buyer is acquiring the whole earning capacity of the business, not what was left after the owner paid themselves.
What raises the multiple?
Recurring revenue such as maintenance plans, a management team that runs the business without the owner, diversified customers, clean financials and documented systems. Owner-dependence is the single biggest discount.
Is my contracting business worth a multiple of revenue?
Revenue multiples are a sanity check, not a valuation method for small trades. Two companies with identical revenue and very different margins are not worth the same.
The formula
value = seller's discretionary earnings × multiple
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