Valuation
Business valuation calculator
This calculator gives a rough value range for a small, owner-operated business. Enter annual revenue, owner earnings and your industry. The range comes from a multiple of owner earnings. It is an estimate only, not an offer and not a formal valuation. A real number needs a look at your books and lease.
How the estimate works
Small businesses usually trade on a multiple of owner earnings, also called seller's discretionary earnings or SDE. That is profit plus the owner's salary, plus personal or one-time costs that run through the business.
The calculator multiplies your owner earnings by a low and high multiple for your industry. Revenue is shown for context, because two businesses with the same revenue can have very different earnings.
What moves the number
Recurring revenue from members, lessons and seasons tends to raise value. A short lease, deferred repairs, or a business that depends on the owner personally tends to lower it. None of that fits in a calculator, which is why the result is a starting point for a conversation and nothing more.
Questions owners ask
Is this calculator an offer to buy my business?
No. It is a rough estimate only. It is not an offer, an appraisal, or a guarantee of value.
What are owner earnings?
Owner earnings, or SDE, are net profit plus the owner's salary and benefits, plus personal or one-time expenses that run through the business.
Why does the calculator ask for revenue if it uses earnings?
Revenue gives context. The range itself is based on owner earnings, because that is what a buyer is paying for.
How do I get a real number?
Book a confidential conversation. We review two to three years of financials, your lease and your revenue mix, then explain what we think the business is worth and why.
Book a confidential conversation
The first conversation costs nothing and stays between us. You set the timeline.
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