Value and getting paid
What is my business worth?
Most small businesses are valued as a multiple of what they earn for their owner. Answer five questions to get a rough range in about two minutes. Nothing you type here is sent anywhere.
This is a rough, illustrative estimate, not an appraisal. Real value depends on your industry, location, assets, real estate, financial records, and the deal terms. A qualified appraiser or accountant can give you a proper valuation.
What raises the value of a business
- A team that runs without you. Buyers pay more when the business doesn't depend on the owner. A gradual handover helps here: your successor learns the business while you're still there.
- Steady or growing earnings, with clean financial records.
- Many customers, rather than a few large ones.
- A long track record and a good local reputation.
Getting paid what it's worth
Many owners find that the buyers who would keep their business going can't pay the full price on day one. A phased buyout solves that: you're paid over several years, largely from the business's earnings.See how payments over time work.
Common questions
How do you value a small business?
Most small businesses are valued as a multiple of seller's discretionary earnings (SDE): the profit plus the owner's salary and personal perks. The multiple depends on things like size, industry, growth, how much the business relies on the owner, and how many customers it has.
Is my business worth a multiple of revenue?
Usually earnings matter more than revenue for small businesses, because two businesses with the same revenue can earn very different amounts. Revenue multiples are more common in some industries and in fast-growing companies.
How accurate is this calculator?
It's a rough, illustrative range to help you start planning, not an appraisal. A qualified business appraiser or accountant can give you a proper valuation based on your records, industry, and the deal terms.
How can I increase what my business is worth?
Make it less dependent on you, keep clean financial records, grow steady earnings, and spread revenue across many customers. A gradual handover helps with the first one: your successor learns the business while you're still there.