Sources
- Multiples come from closed-sale data (BizBuySell Valuation Benchmarks and Insight Report), the IBBA/M&A Source/Pepperdine Market Pulse, and dated broker, adviser and trade-press reports. Every figure links to where we read it and when.
- Where a trade has no closed-sale data, we say so and show the widest range the cited sources support, rather than a guess.
- Acquirer data comes only from press releases, company and sponsor websites and SEC filings. We do not republish third-party compiled databases.
- Legal and tax rules come from statutes, regulations and agency pages, and name the state they apply to.
Calculator methodology
Each trade has an SDE multiple band from the sources on its page. The calculator starts in the middle of the band and moves you using our own heuristic weights:
| Factor | Adjustment to position (0 = bottom, 1 = top) |
|---|---|
| Recurring revenue 50%+ / 25-49% / under 10% | +0.15 / +0.08 / -0.08 |
| Largest customer over 25% / 16-25% | -0.15 / -0.07 |
| Owner field hours over 40 / 21-40 / 10 or fewer | -0.12 / -0.05 / +0.05 |
| Under 3 years / 10+ years in business | -0.12 / +0.04 |
| Revenue growing / declining | +0.10 / -0.15 |
The position is capped between 0.05 and 0.95, and your range spans 40% of the band around it. These weights are judgment, not statistics; they reflect the discounts buyers and lenders cite most often. The output is an educational estimate, never an appraisal.
Examples, people and independence
- Worked examples use clearly labelled fictional businesses. We publish no testimonials or “sold for $X” stories.
- Bylines are “Editorial team.” We do not invent experts.
- No acquirer, broker or adviser pays for placement. Company names are used only to identify them.
- Corrections: use the contact form; we check the primary source and update the page and its date.