Business Valuation
What a private business is worth comes down to its earnings, its industry, and how much of it walks out the door with the owner. Here is how to find the number — grounded in verified transactions.
In shortMost small businesses are valued as a multiple of Seller's Discretionary Earnings (SDE), usually between 2× and 4×. The right multiple depends on the industry and the specifics of the business — start with industry multiples, then refine with a full valuation.
Valuation Multiples by Industry→
Median SDE and EBITDA multiples, by industry — sourced and dated.
How to Value a Business→
The methods, the inputs, and where numbers go wrong.
Calculators→
Valuation, SBA, SDE, EBITDA, and DSCR calculators.
What is SDE?→
Seller's Discretionary Earnings, defined.
What is EBITDA?→
The earnings measure larger deals are priced on.
The Market→
Live valuation index, closings, and market data.