Free Business Valuation Tool

What Is Your Business Worth?

Use the calculator below to get a free preliminary estimate based on real M&A multiples. No signup, no paywall — just an honest number to start the conversation.

Based on actual M&A transaction data
Uses the same SDE and EBITDA methods buyers apply
Free and confidential — no account required
Important note

This calculator gives you a useful starting range — not a certified valuation. A real valuation requires analysis of your actual financials, customer concentration, growth trends, and market position.

John Salony provides free confidential valuations for business owners seriously considering a sale. The conversation is free and there's no obligation.

Get a Real Valuation →
Business Valuation Calculator

Estimate Your Business Value

Enter your numbers below. All fields are estimates — use round figures from your most recent tax return.

1
Select your industry
Typical multiple: 5× – 10× EBITDA  ·  Top PE priority — BCBA capacity drives multiples
2
Enter your financials
Annual Revenue
Net Profit (from tax return)
Owner Salary & Benefits
Personal Expenses Through Business
Depreciation & Amortization
Calculated SDE / EBITDA
—
Enter your financials above to see your estimated value range
How It Works

How Businesses Are Valued

Most small and mid-sized businesses are valued using one of two methods — both are based on your business's ability to generate income for a new owner.

Under $5M revenue

Seller's Discretionary Earnings (SDE)

SDE represents the total financial benefit to a single working owner. It's calculated by adding back to net profit: owner's salary, personal expenses run through the business, depreciation, amortization, and one-time costs.

Net Profit + Owner Salary + Personal Expenses + D&A = SDE

A multiple (typically 2×–6× depending on industry) is then applied to SDE to arrive at business value.

$5M+ revenue or absentee ownership

EBITDA

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is used for larger businesses or those with management teams in place. Unlike SDE, it does not add back the owner's salary.

Net Profit + Interest + Taxes + Depreciation + Amortization = EBITDA

PE buyers and strategic acquirers typically use EBITDA multiples — often 4×–10× for quality businesses in high-demand sectors.

Why the multiple varies so much

A 2× business and a 6× business might have identical revenue — what separates them is quality. Recurring revenue, low owner dependence, diversified customers, strong margins, and documented systems all push multiples higher. Concentration risk, owner-operated models, and declining trends push them lower. This is why preparation before sale matters so much.

Current Market Data

Valuation Multiples by Industry

Based on actual Southeast and Mid-Atlantic transactions. Updated February 2026.

3.0× – 5.0× SDE
Home Services (HVAC, Pest Control, Plumbing)
PE roll-up activity driving premiums
4.0× – 10.0× EBITDA
Healthcare (Medical, Dental, ABA)
Physician capacity and payer mix key
4.0× – 7.0× EBITDA
IT / MSP
MRR and recurring contracts valued highest
4.0× – 7.0× EBITDA
Manufacturing & Distribution
Customer depth and proprietary processes
5.0× – 8.0× EBITDA
Waste Management
Route density and municipal contracts
3.0× – 6.0× EBITDA
Professional Services
Retainer revenue and low owner dependence
1.5× – 3.0× SDE
Restaurants & QSR
Franchise systems command top of range
1.0× – 1.5× Revenue
Accounting / CPA Practices
Year-round recurring clients valued highest
1.5× – 2.5× Revenue
Insurance Agencies
Renewal book quality and retention key
Value Drivers

What Increases — and Decreases — Your Multiple

Pushes multiples higher ↑
Recurring revenue — Contracts, subscriptions, and repeat customers that provide predictable cash flow.
Low owner dependence — A business that runs without you is worth significantly more than one that doesn't.
Customer diversification — No single customer over 15–20% of revenue. Concentrated revenue scares buyers.
Strong gross margins — Higher margins indicate pricing power and operational efficiency.
Documented systems — SOPs, training materials, and clean processes enable transfer and scale.
Growth trend — Three years of consistent revenue growth signals health and momentum.
Pushes multiples lower ↓
Owner dependence — If customers would leave when you do, buyers discount heavily — or walk away.
Customer concentration — One customer representing 30%+ of revenue is a significant risk discount.
Declining revenue — Three years of flat or declining trends spook buyers and reduce multiples.
Weak financial records — Commingled personal and business expenses, unreconciled books, or missing records.
Key person risk — If one non-owner employee holds critical relationships, their retention becomes a deal issue.
Lease risk — Short-term leases with no renewal option or unfavorable assignment clauses reduce value.
Free Confidential Valuation

Get a Real Valuation —
Not Just an Estimate

The calculator above gives you a starting point. A real valuation requires a conversation about your specific business — your financials, your customer base, your growth story. John Salony provides free confidential valuations for owners seriously considering a sale.

Schedule Your Free Valuation

100% Confidential · No Upfront Fees · No Obligation

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