Beaconshire Advisory · www.beaconshireadvisory.com · Business Valuation & Exit-Readiness Calculator · printed
Calculator · Capital & Investment
What is my business worth — and what would make it worth more?
Rebuild seller’s discretionary earnings from your P&L, apply the multiple that businesses in your industry actually sold for, then adjust it for the eight things buyers price: owner dependency, customer concentration, recurring revenue, growth, quality of financials, systems, team and history. The result is a range, a readiness score, and a priced list of what to fix.
Earnings a buyer would price
Seller’s discretionary earnings rebuilt from the P&L, then normalized to EBITDA.
Valuation approaches
Your adjusted range against the industry median, the revenue multiple and the deal-size band.
Exit-readiness scorecard
Eight factors buyers price. The score moves the multiple up to ±40% around the industry median.
What this means
What a transaction advisor would tell you before you list.
Your inputs are encoded in the page link so you can save or share a scenario. Nothing is stored on our servers.
How it works
Methodology & assumptions
- SDE = net income + owner salary + owner benefits + interest + depreciation & amortization + one-time expenses + personal expenses. This is the earnings measure used for owner-operated businesses under roughly $2 million in price. Normalized EBITDA subtracts a market replacement salary and benefits, the lens used by buyers of larger businesses.
- Industry multiple. Median SDE and revenue multiples of businesses actually sold on BizBuySell between Q3 2021 and Q2 2026, by industry. “Other” uses the Q2 2026 market averages (2.7× SDE, 0.7× revenue).
- Readiness score. Eight weighted factors (owner dependency 20, customer concentration 16, recurring revenue 16, growth 14, financial quality 12, documented systems 10, management team 7, operating history 5). A score of 50 prices at the industry median; each point moves the multiple 1.2%, capped at ±40%. The weights reflect the value drivers transaction advisors consistently cite; they are judgment, not statute.
- Range. Low and high are −20% / +20% around the adjusted multiple, reflecting the spread between buyer types and deal terms. The deal-size band cross-check applies the IBBA/M&A Source Market Pulse Q2 2026 median for your likely price band (SDE under $2M; EBITDA above).
- Not modeled. Asset-heavy valuations (equipment, inventory, real estate are added to or carved out of a going-concern price), working-capital pegs, deal structure, seller financing, earn-outs, and the after-tax proceeds — which is where a tax attorney earns the fee.
This calculator is an educational estimate built from published figures and the assumptions listed above. It is not tax, legal, or financial advice, does not account for every provision that may apply to you, and is not a substitute for a return prepared from your actual records. Figures are checked when published and may lag mid-year changes.
Questions
Common questions
Is this what I would actually get for the business?
It is a reasonable screen of enterprise value for a going concern. What you receive depends on structure (asset vs. stock sale), what is included (inventory, receivables, working capital), how much is cash at closing versus seller note or earn-out, and taxes. Two sellers with the same headline price can net very different amounts. Treat this as the starting point for that conversation, not the end.
SDE or EBITDA — which multiple applies to me?
Under roughly $2 million in price, buyers are usually individuals or small groups who will run the business, and they value SDE — the total benefit to one owner-operator. Above that, buyers are typically funds or strategic acquirers who must hire a manager, and they value EBITDA after that salary. The calculator shows both so you can see which lens fits.
Why does owner dependency matter so much?
Because a buyer is purchasing future cash flow, and if the cash flow depends on you, they are buying a job with a risk that the customers leave when you do. It is the most common reason businesses sell below their industry median, and the one buyers cannot fix with price — so they discount, structure an earn-out, or walk away.
How long does it take to improve the score?
Financial quality can change in a quarter (a monthly close, a reviewed statement). Documented systems take six to twelve months. Reducing owner dependency and customer concentration realistically takes eighteen to thirty-six months. That is why exit planning starts two to three years before a sale.
What about the taxes on a sale?
Often the largest single number in the deal. Asset sales allocate price across asset classes with different tax rates; stock sales may qualify for §1202 exclusion for C-Corps; installment treatment, state tax, and the net investment income tax all apply. Structuring the transaction is where our tax-attorney side and CFO side meet; it is worth a conversation before the letter of intent, not after.
Keep going
Related calculators
Thinking about an exit in the next three years?
Exit readiness and transaction support is part of our CFO Advisory practice: a valuation baseline, a value-gap plan, clean financials for diligence, and tax structuring from the attorney side. Start with a Strategy Session.
Schedule a Free Strategy Session