Business Valuation Quick-Pass
A 60-second first-conversation valuation — not an appraisal. Three methods side-by-side (EBITDA × industry multiple, simple DCF, revenue ×), plus the adjusted "likely sale" range, buyer-type recommendation, and a sensible deal structure.
Your business
What it's worth
Quick-pass only — not an appraisal. Real buyers negotiate working-capital adjustments, indemnification holdbacks, and rep-and-warranty insurance. Plan on the final number landing 10–25% below the range top after diligence. For a defensible appraisal, hire a CVA or ABV professional.
How to read these numbers
What the three methods mean
- EBITDA × multiple. Standard for established businesses. The multiple reflects industry, growth, and quality. SaaS gets the highest (4–8×+); restaurants and trucking the lowest (2–3.5×).
- DCF. Projects EBITDA forward at your growth rate, discounts back at 10% WACC, adds a terminal value. Most useful when growth is high and recurring.
- Revenue × multiple. Less common standalone, but a sanity check — especially in industries where EBITDA is noisy (e-commerce, early-stage SaaS).
Why your range may shrink
- Customer concentration ≥ 40% → 10% discount. Buyers fear losing the anchor.
- Owner-dependent business → 15% discount. If the owner walks and the business collapses, it's not really a business — it's a job.
- Low recurring (< 20%) → 10% discount. Every sale has to be re-earned. Higher capital intensity.
- Buyer type reflects who's most likely to bid: PE for $10M+ growing, family offices for stable cash-flow, individual buyers for sub-$500K.
Deal structure matters as much as price. A $3M offer at 50% cash + 50% earnout is meaningfully different from $2.5M all cash — earnouts miss target 30–40% of the time. Use this calc's structure recommendation as a starting point, then negotiate the cash percentage up before negotiating the headline number.
Which path fits you?
This tool helps three audiences. Pick the one that's you.
I'm a small business owner
Got a valuation range? We work with M&A specialists for actual sale process.
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I refer deals to Lending by JLFG
Quick valuation pass before pitching SBA / cash-out refi. Filters the conversation early.
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I'm an institutional funder
Acquisition financing deal flow with valuation methodology pre-disclosed.
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