Acquiror AI

What is the business worth? A quick range, with the method shown.

Enter revenue, EBITDA or SDE and an industry. Get a market-multiple range you can take into a conversation. No account needed.

Estimate the value

Enter the figures you know. Only earnings is required.

Trailing twelve months of sales. Used for context, not to set the range.

Earnings basis

SDE (Seller's Discretionary Earnings) suits owner-run small businesses. EBITDA suits larger businesses a buyer will not operate day to day.

Annual earnings on the selected basis, before the add-backs below.

Above-market owner pay and non-recurring costs are added to base earnings to get adjusted earnings.

Sets the typical multiple range applied to adjusted earnings.

Enter your annual earnings and pick a sector. Your range, mid-point and the multiple behind it appear here.

An earnings-multiple range, with the method shown

  1. Normalize earnings. Start from SDE or EBITDA and add back owner-specific and one-time costs to get adjusted earnings a buyer can rely on.
  2. Apply an industry multiple. Each sector trades in a typical multiple band. The calculator applies that range to the adjusted earnings.
  3. Adjust for growth and risk. Growth and lower risk move the multiple toward the high end; decline and concentration move it toward the low end.

Want the fundamentals first? Read How to value a business.

Questions about valuation

How is a small business valued?

Most small and lower-middle-market businesses are valued on a multiple of earnings. You normalize earnings (SDE for owner-operated businesses, EBITDA for larger ones) by adding back owner-specific and one-time costs, then apply an industry multiple range to get a valuation range.

What is the difference between SDE and EBITDA?

SDE (Seller's Discretionary Earnings) is profit plus the owner's salary, benefits, and discretionary spend, used for owner-operated small businesses. EBITDA assumes a hired manager and is used for larger businesses where the buyer will not run it day to day.

Why a range instead of one number?

A single number implies false precision. Real value depends on growth, risk, customer concentration, and buyer competition, so a credible estimate is a range. The mid-point is a reasonable central estimate, not a promise.

Is this a formal business valuation?

No. It is a calculation of value from industry multiple ranges, for education and planning. It is not a certified appraisal and not advice. A range you can defend requires a review of the actual financials and circumstances.