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What is my business worth?
Most small businesses sell for a multiple of Seller's Discretionary Earnings (SDE), the cash flow one owner-operator takes home. Plug in the numbers from your tax return. You'll see a value range, what moves it, and whether a buyer could actually get an SBA loan at that price. That last check is the one most valuation tools skip.
Earnings (last full year)
Use your business tax return, not projections. Buyers and lenders will check these against the return.
Industry & risk factors
Financing assumptions
Why two businesses with the same profit sell for different prices
What moves your multiple
| Factor | Pushes value down | Pushes value up |
|---|---|---|
| Lease | Under 5 years left, no options, landlord won't consent to assignment | 10+ years with options, assignable, or you sell the building too |
| Owner dependence | You are the brand, the cook or the only licensed person | Trained staff and a manager; written procedures |
| Books | Cash sales not on the return, mixed personal expenses | Returns, P&L and bank deposits all tie out |
| Trend | Revenue down year over year | Three years of steady growth |
| Customer mix | One customer is over 20% of sales | Many small, repeat customers; contracts |
| Equipment | Old equipment a buyer must replace soon | Recently upgraded, under warranty |
Selling? Get these ready
- 3 years of business tax returns
- Year-to-date P&L and balance sheet
- Lease and any amendments
- Equipment list with ages
- Staff roster (no names needed yet)
- Licenses and permits
Buying? Know your budget
- SBA 7(a): about 10% down is typical
- Lenders want 1.25×+ coverage after your pay
- Lease must usually run as long as the loan
- Budget for working capital and closing costs
Selling the building too?
We value the operation and the real estate separately, then decide with you whether to sell them together, separately, or keep the building and lease it to the buyer. A long new lease from you can raise what the business sells for.
Questions owners ask
Business valuation FAQ
What is SDE and how do I calculate it?
Seller's Discretionary Earnings is the total cash benefit to one full-time owner: net profit on the tax return, plus that owner's salary and perks, plus depreciation, amortization and interest, plus documented one-time expenses. It's the standard earnings figure for businesses that sell for under a few million dollars.
What multiple do small businesses sell for?
Most owner-operated main-street businesses sell for roughly 1.5× to 4× SDE, depending on industry, lease, owner dependence, trend and how clean the books are. Laundromats have reported a median of 3.5× SDE (855 sales reported to BizBuySell, 2021–2025).
Why does SBA financing matter for my price?
Most small-business buyers use an SBA 7(a) loan. If the business's cash flow can't cover the loan payment with room to spare (lenders typically want 1.25× coverage after paying the owner), the lender won't approve it at that price, whatever the multiple says. The calculator shows the highest price that still clears that bar.
Is my information kept confidential?
Yes. This calculator runs in your browser and nothing is stored unless you ask for a valuation. Every business we represent is marketed without its name, and buyers sign a confidentiality agreement before they see financials.
Do you work with buyers too?
Yes. We help buyers find businesses, check the numbers, and line up SBA lenders, attorneys and lease assignments. Start on our buy a business page.
Want a real number, not a range?
We'll review your returns and lease and give you a confidential written valuation plus a buyer-financing check. Free, and no obligation to list.
GET A CONFIDENTIAL VALUATION
Free written valuation and SBA financing check.