BizBrokerMatch
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Business Valuation Calculator

Enter your SDE, select your industry, and answer 8 value driver questions. Get an estimated sale value based on real transaction multiples from 67 industries.

✓ 67 industries✓ Real closed-transaction multiples✓ 8 value driver adjustments✓ Free, instant, no signup
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IndustryFinancialsValue DriversResults

What industry is your business in?

Select your industry to get multiples from real closed transactions. 67 industries covered.

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Adjacent Services
Business Services
Construction & Trades
Environmental Services
Food & Beverage
Healthcare
Home Services
Manufacturing
Other
Technology
Wholesale & Distribution

What Is SDE?

Seller's Discretionary Earnings (SDE)is the total financial benefit available to a single owner-operator. It's calculated as: Net Profit + Owner Compensation + Add-Backs. SDE is the standard valuation metric for businesses under approximately $5M in deal size.

Buyers apply a multiple to your SDE to determine the purchase price. A business with $500K SDE selling at 3× SDE = $1.5M purchase price. The multiple depends on your industry, growth trajectory, recurring revenue, and other value drivers — which is exactly what this calculator measures.

What Affects Your Multiple?

Recurring RevenueUp to +28%

Maintenance contracts, service agreements, and subscriptions reduce buyer risk and command the biggest multiple premium.

Owner DependencyUp to +18%

A business that runs without the owner commands 1–2× higher multiples. If you're the business, buyers see key-man risk.

Revenue TrendUp to +15%

3 consecutive years of growth creates competitive bidding. Declining revenue can cut your multiple in half.

Customer ConcentrationUp to +8%

One customer >25% of revenue is a deal risk. Below 10% is M&A-ready.

Financial CleanlinessUp to +12%

Audit-ready financials add 15–25% to sale price. Messy books are the #1 reason deals fall apart.

Management TeamUp to +18%

A documented management team signals to buyers that the business is transferable, not owner-dependent.

Frequently Asked Questions

How accurate is this business valuation calculator?

This calculator uses SDE multiples from closed transactions across 67 industries, then adjusts for 8 value drivers that buyers actually use to price risk. It's a solid planning estimate — not a certified appraisal. Actual sale prices depend on deal structure, buyer type, and due diligence.

What is a good SDE multiple for a small business?

Most Main Street businesses sell at 2–4× SDE. High-multiple industries: HVAC (3.5×), IT MSP (3.5×), Pest Control (2.6×), Security Systems (3×). Lower-multiple industries: Painting (2.1×), Restaurants (1.8×), General Contracting (2.4×). Businesses with $500K+ SDE and strong recurring revenue can command 4–6×.

Should I use SDE or EBITDA?

Use SDE for businesses under $2–3M deal size where the owner operates the business. Use EBITDA for mid-market businesses ($2M+) with a management team in place. The difference: SDE includes the owner's total compensation; EBITDA excludes it.

How do I increase my business valuation?

Highest ROI improvements: (1) build recurring revenue — maintenance contracts, service agreements, subscriptions; (2) reduce owner dependency — install a management team; (3) diversify customers below 15% concentration; (4) clean up financials with a professional bookkeeper; (5) document systems and processes.