What Is My Business Worth?
Estimate your business valuation using real industry multiples and 8 quality adjustment factors that buyers actually evaluate. Not a generic revenue multiplier — this tool models the same factors a Quality of Earnings report examines.
Built on 30+ years of business appraisal and exit advisory experience across technology, entertainment, manufacturing, real estate, and professional services.
Step 1: Select Your Industry
Industry determines the baseline valuation multiples. Each industry has different risk profiles, growth expectations, and buyer pools that directly impact what your business is worth.
Frequently Asked Questions
How accurate is this business valuation calculator?
This calculator provides a preliminary estimate based on industry-standard SDE and EBITDA multiples, adjusted for 8 business quality factors. It is not a substitute for a formal business appraisal, which considers market conditions, comparable transactions, asset values, and deal-specific factors. Use this as a starting point to understand your range.
What is the difference between SDE and EBITDA?
Seller's Discretionary Earnings (SDE) adds back the owner's total compensation and benefits to net income — it shows what an owner-operator takes home. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) does not add back owner compensation. SDE is standard for businesses under $1M in earnings; EBITDA is used for larger businesses with professional management teams.
Why do valuation multiples vary so much between industries?
Multiples reflect risk, growth potential, and buyer demand. Technology companies command higher multiples (6x-12x EBITDA) because of scalability and recurring revenue. Retail and personal services trade at lower multiples (3x-6x EBITDA) due to higher competition, lower barriers to entry, and greater owner dependence. The specific multiple within the range depends on your business quality factors.
What is the biggest factor that affects business valuation?
Owner dependence is consistently the #1 value driver (or killer) in small and mid-size business sales. A business that cannot operate without the owner is worth significantly less than one with a capable management team. Buyers are purchasing future cash flows — if those cash flows disappear when you leave, the value drops accordingly.
Should I use an asset sale or stock sale when selling?
This depends on your tax situation, entity type, and liability exposure. In an asset sale, the buyer purchases specific assets and the seller keeps the entity. In a stock sale, the buyer acquires the entity itself. Buyers generally prefer asset sales (for stepped-up tax basis and liability protection). Sellers often prefer stock sales (for capital gains treatment). The right structure can save hundreds of thousands in taxes — plan this 1-2 years before the sale.
Want a professional valuation for your specific business?
This calculator gives you a range. Dennis Duitch provides formal business appraisals grounded in 30+ years of transaction experience — from startups to $50M+ companies across entertainment, technology, manufacturing, and professional services.
MBA, Northwestern University · CPA · Certified Business Appraiser · Mediator · 30+ years of practice
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