Why Get a Business Valuation?
Whether you're planning to sell now, in the future, or simply want to understand your business's worth, a professional valuation provides valuable insights.
What You'll Learn
- Estimated Market Value Range
What buyers in today's market would likely pay for your business.
- Value Drivers & Detractors
Factors that increase or decrease your business's value.
- Improvement Opportunities
Steps you can take to potentially increase value before selling.
What Determines Business Value?
Multiple factors contribute to a business's market value. Understanding these helps you prepare for valuation and potential sale.
Financial Performance
Revenue, profitability, cash flow trends, and adjusted earnings (SDE/EBITDA) are primary valuation drivers.
Growth Trajectory
Historical growth patterns and future growth potential significantly impact perceived value.
Industry & Market
Industry trends, market conditions, and comparable transaction multiples in your sector.
Asset Base
Equipment, inventory, real estate, intellectual property, and other tangible and intangible assets.
Customer Base
Customer concentration, recurring revenue, contract value, and relationship strength.
Business Systems
Operational efficiency, management team strength, and owner dependency level.
Common Valuation Methods
Different approaches are used depending on your business type, size, and industry.
SDE Multiple
Seller's Discretionary Earnings multiplied by an industry-specific factor. Most common for small businesses.
Small businesses under $1M in earnings
EBITDA Multiple
Earnings Before Interest, Taxes, Depreciation, and Amortization times a market multiple.
Mid-market businesses with management teams
Asset-Based
Value based on the fair market value of business assets minus liabilities.
Asset-heavy businesses or liquidation scenarios
Request a Confidential Valuation
Start with a no-obligation conversation about your business and valuation needs.