Valuation
How much is my business worth?
Most small, owner-operated businesses are worth a multiple of owner earnings, not revenue. Start with profit, add back your salary and personal or one-time costs, then adjust for lease security, staff depth, recurring revenue and how much the business depends on you. The calculator gives a rough range; a review of your books gives a real one.
Start with owner earnings
Owner earnings, often called SDE, are what a single full-time owner takes out of the business in a normal year. Take net profit, then add back the owner's salary and benefits, interest, depreciation, and personal or one-time expenses.
Many owners undercount this. A family phone plan, a car, or a one-off roof repair can all be legitimate add-backs if you can document them.
What raises or lowers the multiple
The multiple applied to owner earnings depends on risk. The questions a buyer asks are predictable.
Recurring revenue
Memberships, lesson programs, seasons and contracts that renew are worth more than one-off sales.
Lease security
Years remaining, renewal options and the landlord relationship often drive more of the value than owners expect.
Owner dependence
If customers and staff only work with you, a buyer prices in the risk of you leaving.
Deferred work
Equipment, roofs, pools and surfaces that need replacing come off the price or get funded after the sale.
Get a rough range, then a real one
Use the business valuation calculator for a starting range. It is an estimate only and not an offer. For a real answer, we look at two to three years of financials, your lease and your revenue mix, and tell you what we think and why.
Questions owners ask
Is my business worth a multiple of revenue?
Rarely, for small owner-operated businesses. Buyers usually price on owner earnings, because revenue says little about what the business actually pays its owner.
What documents do I need for a valuation?
Two to three years of profit and loss statements and tax returns, your lease, and a breakdown of revenue by type, such as members, lessons, rentals or contracts.
Does my business need to be profitable to sell?
It helps a great deal. A business with thin or negative earnings can still sell, but the value tends to come from assets, location or contracts rather than earnings.
Will you give me a valuation guarantee?
No. Any number we share is our view based on what we have reviewed. It is not a guarantee and not an offer until it is written as one.
Is the first conversation confidential?
Yes. The first conversation stays between us.
Book a confidential conversation
The first conversation costs nothing and stays between us. You set the timeline.
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