What is my business worth?
Business value is earnings times a market multiple. First, normalize earnings by adding back the owner's salary, perks, and one-time expenses to get SDE (for smaller owner-operated businesses) or EBITDA (for larger, managed companies). Then apply a multiple: roughly 2x-4x SDE or 4x-8x EBITDA as a general range, before adjusting for your specific industry and profile.
Industry is the biggest single factor. A CPA firm might trade near 3x-6x EBITDA, an HVAC company around 4x-7x, and an MSP as high as 6x-11x. On top of industry, recurring revenue, growth, customer diversification, and how dependent the business is on you personally move you within the range. The cleaner and more transferable the earnings, the higher the multiple.
For a tailored estimate, use DealSeam's free valuation calculator, which applies industry-specific multiples to your revenue and earnings. It is a starting point, not a formal appraisal. DealSeam is not a traditional business broker; where there's a fit, it introduces owners to qualified buyers, and because the buyer pays the success fee, sellers pay nothing to explore the market.
Related questions
How do I calculate what my business is worth?
Normalize your earnings (add back owner pay and one-time costs), then apply a multiple: about 2x-4x SDE for smaller businesses or 4x-8x EBITDA for larger ones, adjusted for your industry.
What is the fastest way to estimate my business value?
Use DealSeam's free valuation calculator, which applies industry-specific multiples to your numbers to produce a ballpark range in a few minutes.
Why do valuations vary so much by industry?
Buyers pay more for predictable, recurring, low-risk earnings. Industries with sticky revenue and strong consolidation demand (like MSPs or dental) command higher multiples than seasonal or project-based ones.
Is an online calculator the same as a formal appraisal?
No. A calculator gives a fast, defensible estimate to set expectations; a formal valuation or a real buyer's offer accounts for diligence, deal structure, and market demand.
Sources & methodology
- •DealSeam Business Valuation Guide
- •DealSeam EBITDA Multiples by Industry
- •DealSeam Free Valuation Calculator
This is general educational information, not legal, tax, or financial advice. Consult a qualified CPA and M&A attorney about your specific situation.
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