Demonstration platform. SellMyBiz.com is a new independent business-sale platform, currently running as a demonstration site ahead of its US launch. We are speaking with business brokers, M&A advisers and regional partners across the United States. Listings, broker profiles and transaction workflows shown may include demonstration content.
SellMyBiz.com

Valuation

What is your business actually worth to a buyer?

Buyers price cash flow and risk. Enter your earnings and see an illustrative range before you talk to anyone.

Illustrative range Demo

$1,170,000 – $1,710,000

Based on a 2.6x–3.8x multiple of earnings for Home Services. Real outcomes move with growth trend, recurring revenue, lease terms, working capital and deal structure.

See the sale process

This is an educational estimate on a demonstration platform, not a certified appraisal or an offer.

Business valuation questions

How privately held US businesses are normally valued, and what moves a multiple up or down.

How is a small business valued?

Most owner-operated US businesses are valued as a multiple of normalized earnings — seller's discretionary earnings for smaller companies and adjusted EBITDA for larger ones — with the multiple set by industry, size, growth, recurring revenue, customer concentration and how dependent the business is on the owner. Asset-heavy and real-estate-inclusive deals are then adjusted for the value of the assets conveyed.

What is SDE?

Seller's discretionary earnings is pre-tax net profit plus one owner's compensation and benefits, interest, depreciation, amortization and non-recurring or personal expenses. It represents the total financial benefit available to a single full-time owner-operator and is the standard earnings measure for smaller owner-operated businesses.

What is EBITDA?

EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted or normalized EBITDA additionally removes non-recurring items and restates owner compensation to a market-rate salary, which makes it the standard earnings measure once a business runs with management in place.

What is the difference between SDE and EBITDA?

SDE includes one owner's compensation as a benefit to the buyer; EBITDA treats management as a cost and excludes it. The same business will therefore show a higher SDE than EBITDA. SDE multiples are correspondingly lower, and mixing the two measures with the wrong multiple is a common valuation error.

What multiple will my business sell for?

The multiple depends on the earnings measure used, the industry, the size of earnings, the growth trend, revenue quality and transferability. Larger, less owner-dependent businesses with recurring revenue and diversified customers price at the top of their range; owner-dependent businesses with concentrated customers price below it.

What is the difference between asking price and enterprise value?

An asking price is the amount advertised for the business, usually stated on a cash-free, debt-free basis with a normal level of working capital included. Enterprise value is the agreed value of the operating business before adjusting for cash, debt and working capital at closing, and the final cash to the seller is set by those adjustments and the deal structure.