Many business owners have no idea what their business is actually worth — or what is quietly holding that number back. If the day ever comes to sell, it very well may be the biggest financial transaction of your life. Many owners arrive at that moment completely unprepared. This tool changes that.
(This tool is best suited for businesses with revenue of $1M – $30M)
Basic information helps us benchmark your business against comparable companies in your industry.
These inputs help us estimate your Adjusted EBITDA — the primary driver of your business valuation. Estimates are fine.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Adjusted EBITDA is a commonly used proxy for the cash flow available to a buyer, particularly for businesses that are not highly capital intensive or real estate–driven. An industry- and company-specific multiple is typically applied to Adjusted EBITDA to estimate enterprise value.
Note: Some valuation approaches use Seller's Discretionary Earnings (SDE), which includes owner compensation and discretionary expenses. Because SDE blends the cost of running the business with the earnings it generates, it can obscure the true cash flow available to a buyer. In our approach, Adjusted EBITDA normalizes owner compensation to a market-based level — reflecting the cost required to operate the business — so that earnings more accurately represent what can transfer to a new owner.
How would you like to enter your EBITDA?
Note: This represents current owner compensation. We compare this to a market-based replacement cost to normalize earnings. Owner distributions (from retained earnings) are not included, as they reflect a return on ownership rather than a cost of operating the business.
Note: This reflects the cost a new absentee owner would incur to operate the business and is used to adjust earnings to a transferable, market-based level.
Note: Exclude owner compensation (handled above). Include only non-recurring or non-operating items that would not continue, or be required to add, under new ownership. Adjustments should be reasonable, supportable, and reflective of ongoing earnings.
These qualitative factors can significantly increase or decrease what a buyer is willing to pay.
Valuation Estimate •
Most owners are surprised by the gap between the value of their company today and the value it could be after making just 2 key improvements. The good news: business value can be improved significantly with the right focus and enough lead time.
Many owners operate in a complete information desert when it comes to the value of what they have built. They run their business for decades, and if the day ever comes to sell — which for many is the single largest financial transaction of their lives — they arrive completely unprepared. You just changed that. Answer 3 quick questions to get a personalized roadmap for making the most of what you have built.
You have seen the Estimated Value for your business. Three quick questions help us tailor your improvement plan to your specific situation — takes less than 60 seconds.
Based on your valuation and responses, these are the highest-leverage opportunities to increase both your longer-term profitability and business value — tailored specifically to your business. Most owners never see this level of specificity.
These improvements are tailored to your specific business. Each one can meaningfully move both your profitability and your business value — address any of them and you will be in a stronger position.
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