Business Valuations

How Businesses Are Valued

Small, owner-operated businesses are usually valued as a multiple of seller’s discretionary earnings (SDE). Larger companies with management in place are typically valued as a multiple of EBITDA. The multiple itself reflects risk and growth: industry, customer concentration, owner dependence, recurring revenue, and the financing a buyer can obtain.

What Our Business Valuation Covers

• Recast earnings: SDE or EBITDA with defensible add-backs
• Market multiples & comparable sales: for your industry, size, and region
• Risk factors: owner dependence, customer concentration, and key employees
• Assets & working capital: equipment, inventory, and what normally transfers with the business
• Real estate: owned property, lease terms, and whether the building sells with the business
• Value drivers: practical steps that could increase value before a sale

When to Get a Business Valuation

Before you list, before you respond to an unsolicited offer, when planning an exit a few years out, before a partner buyout, or as part of succession and estate planning. Valuations are confidential and carry no obligation to sell.