What Is Your Business Worth?
Answer a few questions and get a confidential, no-obligation valuation range from people who actually buy and sell companies.
Free confidential valuation
What drives your valuation
Earnings
Adjusted EBITDA after normalizing owner pay and one-time costs.
Growth & recurring revenue
Contracts and repeat customers command premium multiples.
Risk
Customer concentration, owner dependence and key-person risk lower value.
Size
Larger EBITDA attracts private equity and higher multiples.
SDE or EBITDA — which number buyers use
Seller's discretionary earnings (SDE) adds back one owner's full pay and perks; it is used for smaller, owner-operated businesses, usually under roughly $1M of earnings. Adjusted EBITDA assumes a market-rate manager replaces you; it is what private equity and most buyers of $2M–$50M revenue companies use. Using SDE on a larger company can make your number look bigger than any buyer will accept.
Add-backs buyers usually accept — and the ones they challenge
Usually accepted
Owner pay above market rate, personal vehicles and travel, one-time legal or relocation costs, family members on payroll who won't stay, non-recurring repairs.
Often challenged
"We'll save money on X" projections, recurring "one-time" costs, below-market rent you pay yourself, deferred maintenance, unpaid owner labor the buyer must replace.
Every add-back needs documentation. A clean, defensible schedule often matters more than a long one.
Illustrative multiple ranges by earnings size
These are broad, directional ranges for US lower-middle-market companies — not a quote. Industry, growth and risk move them significantly.
| Adjusted EBITDA | Typical buyer | Rough multiple range |
|---|---|---|
| $250K–$1M | Individuals, search funds, small strategics | ~3x–5x (often on SDE) |
| $1M–$3M | Independent sponsors, small PE, strategics | ~4x–7x |
| $3M–$10M | PE platforms and add-ons, larger strategics | ~6x–9x+ |
Larger, recurring, diversified businesses trend toward the top of a range; owner-dependent or concentrated ones toward the bottom.
Why your valuation may be lower than you expected
- Owner dependence — if customers buy from you personally, buyers discount for the risk you leave.
- Customer concentration — one customer at 30% of revenue can cost a full turn of EBITDA or force an earnout.
- A down or flat year — buyers price trailing earnings; one bad year weighs heavily.
- Deferred capex — old trucks or machines become a price deduction.
- Messy books — if earnings can't be verified, buyers assume the lower number.
The good news: most of these can be improved in 12–24 months. Our valuation shows you which levers move your number most.
Valuation FAQs
How is a small business valued?
Typically as a multiple of adjusted EBITDA (or seller's discretionary earnings for smaller firms). Multiples rise with size, growth, recurring revenue and a strong management team, and fall with customer concentration and owner dependence.
What multiple will my business sell for?
Lower-middle-market companies often trade in a broad range of roughly 3x to 8x+ EBITDA depending on industry, size and risk. Your actual range depends on your specific numbers.
Is the free valuation confidential?
Yes. Your information is used only to prepare your range and is never shared without your permission.
What add-backs do buyers accept?
Documented owner compensation above market, personal expenses run through the business, and true one-time costs. Projected savings and recurring 'one-time' costs are usually rejected.