Three-step process to generate defensible business valuations in under 60 seconds.
SDE multiples from IBBA market data, adjusted for the risk factors banks and buyers actually evaluate.
SDE represents total financial benefit to a working owner: net profit plus owner compensation, benefits, and discretionary expenses. Industry standard for main street businesses under $5M.
Valuation = SDE × Industry Multiple × Risk Adjustment
50+ industry categories with multiple ranges derived from IBBA market data and DealStats closed transactions. Updated quarterly.
Example: Professional services (2.5-3.5×), SaaS businesses (3.0-4.5×), restaurants (1.5-2.5×)
Customer concentration
Top customer revenue dependency
Owner involvement
Hours worked, specialized skills required
Revenue trajectory
Growth, stability, or decline trends
Recurring revenue mix
Contracts, subscriptions, retention rates
Business maturity
Years established, market position
Asset/lease structure
Real estate, equipment, lease terms
Low/mid/high valuation range accounts for negotiation dynamics, deal structure variables (asset vs. stock sale), and financing terms (seller note, earnout provisions).
Single-number valuations create false precision. Ranges reflect market reality.
International Business Brokers Association quarterly transaction surveys covering main street deal activity
Published quarterly • Last update: Q4 2024
Transaction comps database with 40,000+ closed deals, filterable by industry and size
Continuous updates • Subscription access
Sector benchmarking studies from trade associations and private equity research
Varies by industry
Industry multiples updated quarterly to reflect current market conditions and deal flow
Next scheduled update: April 2025
See how your current listings compare to IBBA multiples. Run valuations for businesses you're actively pricing.