TradeExit Guide

How much is my business worth?

Most owner-operated businesses sell for roughly 2-3.5x seller's discretionary earnings (SDE); BizBuySell reports a 2.7x average cash-flow multiple across all industries for Q2 2026, and companies with $2M-$5M of EBITDA sold for about 4.0x EBITDA (IBBA Market Pulse). Enter your numbers below for a sourced range.

Updated 2026-09-23 · 3 sources · By the TradeExit Guide team

Free business valuation calculator

Applies the cited SDE multiple band for your trade, then positions you inside it using recurring revenue, customer concentration, owner dependence, years operating and trend. Educational estimate, not an appraisal.

Pre-tax profit + one owner's pay and perks + interest + depreciation + one-time costs. Not sure? Use the SDE calculator.

Educational estimate, not an appraisal or an offer. Ranges come from published closed-sale data and broker/adviser reports cited on each trade page; the adjustment weights are our own documented heuristic (see Editorial policy). Real estate, inventory and working capital are excluded.

Get the full valuation brief (printable)

Your inputs and range, the cited multiples behind it, the buyer type active at your size, three changes that move the multiple, and next steps - on this page, ready to print or save as a PDF.

We are not a broker and do not share your details with buyers. Your download appears instantly on this page; we contact you later only if you tick the box. Delete anytime via the contact page.

Your brief is below. We do not share your details with buyers or brokers.

Valuation brief: -

Prepared with the TradeExit Guide valuation calculator (tradeexitguide.com). Educational estimate, not an appraisal or an offer.

Your inputs

Annual revenue-
SDE / owner cash flow-
Recurring / contract revenue-
Largest customer share-
Owner hours per week in the work-
Years in business-
3-year trend-

Result

Estimated value range-
Implied SDE multiple-
Cited SDE multiple band for this trade- to -
Full cited range in dollars-
Implied multiple of revenue-
Most likely buyer type-
Pricing basis-
Source of the band-

What moves your multiple

  • Recurring revenue (you: -). At 25%+ the calculator moves you up the band; at 50%+ further. Maintenance agreements, contracts and memberships count.
  • Owner dependence (you: -). Under 20 hours a week in the field or chair helps; under 10 helps most. Buyers pay for a business that runs without you.
  • Customer concentration (you: -). Keep any single customer under about 15% of revenue.

Next steps

  1. Recast your earnings line by line with the SDE calculator (tradeexitguide.com/tools/sde-calculator/).
  2. See what you would keep after taxes and fees with the after-tax proceeds calculator (tradeexitguide.com/tools/after-tax-proceeds-calculator/).
  3. Read your trade's valuation page for the sources behind the band and the drivers buyers cite.
  4. If you have an offer, compare it on guaranteed cash, not headline price (tradeexitguide.com/guides/unsolicited-pe-offer/).
  5. Before you sell, get a formal valuation from a credentialed appraiser or an experienced intermediary.

Ranges come from published closed-sale data and broker/adviser reports; adjustment weights are our own documented heuristic. Real estate, inventory, working capital, debt and taxes are excluded.

Valuation guides by industry

Dental practiceMedical practiceVeterinary practiceRestaurantInsurance agencyAccounting / CPA firmHome services (HVAC, plumbing, pest, roofing, electrical)All industries: multiples table18 industries, sourced

How small businesses are valued

  1. Recast earnings to SDE - pre-tax profit plus one owner’s pay and perks, interest, depreciation and genuine one-time costs. Use the SDE calculator.
  2. Apply the multiple buyers actually pay - closed-sale data (BizBuySell) and dated broker and adviser reports, never asking prices.
  3. Position yourself in the range - recurring revenue, customer concentration, owner dependence and trend move you up or down.
  4. Switch to EBITDA at scale - above roughly $1M of earnings, buyers price on adjusted EBITDA. See multiples.

Frequently asked questions

How do you value a small business?

Most small businesses are valued as a multiple of seller’s discretionary earnings (SDE). BizBuySell reports a 2.7x average cash-flow multiple across all industries for Q2 2026; your multiple depends on industry and transferability.

Is revenue or profit used?

Profit, almost always. Revenue multiples are a cross-check, except where recurring revenue is the product (insurance books, CPA firms, pest routes).

Sources

  1. BizBuySell - Business valuation multiples by industry (sold Q3 2021-Q2 2026) (accessed 2026-09-23)
  2. BizBuySell Insight Report (Q2 2026) (accessed 2026-09-23)
  3. IBBA / M&A Source / Pepperdine Market Pulse, Q2 2026 highlights (accessed 2026-09-23)
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