A simple, consistent approach to business valuation that brokers can rely on.
Select industry, enter revenue and SDE. Add optional details like employees, year established, or asking price.
Receive a valuation range with applied SDE multiples, risk adjustments, and a deal quality score.
Copy the broker rationale directly or download a professional PDF report to use in listing presentations.
We use Seller's Discretionary Earnings (SDE) as the primary valuation metric for Main Street businesses. SDE represents the total financial benefit to a working owner: net profit plus owner salary, benefits, and discretionary expenses. This is the industry standard for businesses under $5M in value.
We maintain SDE multiple ranges for 50+ industries based on actual transaction data. Multiples vary by industry due to factors like growth potential, capital requirements, owner dependency, and recurring revenue characteristics.
We adjust base multiples for business-specific risk factors including:
We provide a low-mid-high range rather than a single number. This accounts for negotiation dynamics, deal structure variations (asset sale vs. stock sale, seller financing terms), and inherent uncertainty in small business valuations.
Our industry multiples are derived from:
International Business Brokers Association market pulse surveys
Transaction database with 40,000+ completed deals
Sector-specific multiple studies and benchmarks
Multiples refreshed each quarter to reflect market conditions
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