BizyFi Apply

Value a business

What is the business worth, and can a buyer finance it?

Get a free value range in a minute, compare it with industry benchmarks, or ask an advisor for a full review. Every estimate also shows how much of the price a buyer's lender could cover.

Ways to value a business

Free

Quick estimate

A value range from cash flow and an industry multiple, in under a minute.

Start →
Free

Industry benchmarks

Typical multiples and deal sizes from BizyFi's research on industries popular with acquirers.

Compare →
Advisor

Advisor review

A Fusion Network advisor looks at your financials, the likely buyer pool and what lenders will finance.

Email an advisor →

Quick estimate

Small businesses usually sell for a multiple of their cash flow. Pick the closest industry (or set your own range) and enter the cash flow.

Industries marked * use BizyFi's research ranges; the others are broad starting points to replace with real comparables.
SDE: profit plus the owner's pay and one-off or personal expenses. EBITDA: profit before interest, taxes, depreciation and amortization, after a market salary for management.
SDE includes the owner's pay, so this comes out before working out the loan a buyer could carry.
Estimated value range—
Midpoint—
Loan the cash flow supports (1.25x, 10.5%, 10 yrs)—
Share of the midpoint a lender could cover—

Buying? Check your buying power

This is an estimate from your inputs, not an appraisal or an offer. Real prices depend on growth, customer concentration, owner dependence, working capital, the assets included and the buyer pool. SBA lenders order an independent business valuation for most acquisition loans.

Industry benchmarks

Typical ranges from BizyFi's research on industries that attract acquirers. Ranges vary with size: larger, less owner-dependent businesses sell at the top of the range or above.

Industry (NAICS)Typical multipleTypical deal sizeCommon financing
Loading…

Common questions

SDE or EBITDA: which should I use?

Owner-operated businesses are usually priced on SDE, which adds back the owner's pay. Larger businesses with a management team are usually priced on EBITDA, after paying market salaries. Use the measure that matches your industry's multiple.

Why show how much a lender could cover?

Most buyers finance the purchase. If the price is far above what the cash flow can repay, buyers need more cash, a larger seller note or a lower price, and the sale takes longer.

How do I get a formal valuation?

For a sale, an SBA loan, an estate or a partner dispute, use a credentialed business appraiser. Our advisors can tell you what the buyer's lender will expect.