How is the estimate calculated?

We take your revenue, earnings, industry, and a few qualitative answers (owner involvement, customer concentration, growth trend) and apply earnings multiples that are typical for businesses of your size and industry. The result is a conservative range, not a single number, because real sale prices depend on buyer demand and deal terms.

What is an SDE or EBITDA multiple?

Most small businesses sell for a multiple of their earnings. SDE (seller's discretionary earnings) is profit plus the owner's salary and benefits — the usual basis for owner-operated businesses. EBITDA is earnings before interest, taxes, depreciation, and amortization — the usual basis for larger businesses with a management team. A "3x SDE" valuation means the price is roughly three times annual SDE.

How accurate is this estimate?

It is a starting point, not a formal appraisal. The estimate is based only on the figures you report and broad industry norms. A real valuation requires reviewing financial statements, customer contracts, market conditions, and more. Treat the range as a way to set expectations before talking to an advisor.

What happens after I get my estimate?

That's up to you. You can get matched with an M&A advisor who can validate the number and run a sale process, or you can list the business yourself for free. There is no obligation either way, and we don't share your information with buyers.

What is your business worth?

Answer eight quick questions and get an estimated valuation range based on the earnings multiples buyers actually pay for businesses in your industry. Built for owners thinking about a sale — whether that's this year or three years from now.

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Takes about 2 minutes
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Common questions

How is the estimate calculated?: We take your revenue, earnings, industry, and a few qualitative answers (owner involvement, customer concentration, growth trend) and apply earnings multiples that are typical for businesses of your size and industry. The result is a conservative range, not a single number, because real sale prices depend on buyer demand and deal terms.
What is an SDE or EBITDA multiple?: Most small businesses sell for a multiple of their earnings. SDE (seller's discretionary earnings) is profit plus the owner's salary and benefits — the usual basis for owner-operated businesses. EBITDA is earnings before interest, taxes, depreciation, and amortization — the usual basis for larger businesses with a management team. A "3x SDE" valuation means the price is roughly three times annual SDE.
How accurate is this estimate?: It is a starting point, not a formal appraisal. The estimate is based only on the figures you report and broad industry norms. A real valuation requires reviewing financial statements, customer contracts, market conditions, and more. Treat the range as a way to set expectations before talking to an advisor.
What happens after I get my estimate?: That's up to you. You can get matched with an M&A advisor who can validate the number and run a sale process, or you can list the business yourself for free. There is no obligation either way, and we don't share your information with buyers.

AI summary

This free valuation tool turns eight inputs — revenue, earnings, industry, owner involvement, customer concentration, and growth trend — into an estimated sale-price range using the SDE and EBITDA earnings multiples typical for small businesses in your industry. It returns a conservative range rather than a single number, because real prices depend on buyer demand, deal terms, and a full review of your financials, so treat it as a starting point before talking to an advisor. It is built for owners gauging what their business might be worth, whether a sale is this year or years away.

This is general information, not legal, tax, or financial advice, and CapBench is not a lender.

Source: CapBench SBA Intelligence, based on public SBA, lender, franchise, FDIC, and related records. CapBench is not a lender and does not guarantee financing.