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What's my business worth?

A free service to help you understand what your business is worth, to you and to a buyer.

Answer a few questions for a rough estimate. It takes about 2 minutes.

Please note: this is a rough estimate based on common rules of thumb. It is not an appraisal or professional valuation. A qualified business valuator or accountant can give you a proper figure. Read more.

Part 1: Your numbers

Part 2: Are you ready to sell? (Yes or No)

1. Could the business run for a month without you?
2. Are your financial records from the last 3 years in good order?
3. Do you have trusted staff who know how things are done?
4. Are your main customers spread out (no single customer is more than 20% of sales)?
5. Is your lease, equipment and paperwork up to date?
6. Have you thought about when you would like to retire?

Business words in plain English

What is EBITDA?

EBITDA is roughly your yearly profit before interest, taxes and depreciation. Small businesses often sell for about 2 to 4 times that. A business earning $150,000 might sell for around $450,000.

What is SDE?

Seller's discretionary earnings. It's what the business earns for one owner who works in it: profit plus the owner's own pay and personal perks run through the business. Small owner-run businesses are often valued on SDE.

What is goodwill?

The value of your business name, reputation and loyal customers, on top of your equipment and stock.

What is working capital?

The money a business needs day to day. Roughly, your stock and the bills customers owe you, minus the bills you owe. Buyers often agree with you on how much should be left in the business at closing.

What is vendor take-back financing?

You agree to be paid part of the price later, usually in instalments with interest, instead of all at closing. Ask your lawyer how to protect those payments.

What is an NDA?

A non-disclosure (confidentiality) agreement. A buyer signs it before you share private details like your books.

What is an asking price?

The price you put on your listing. It is your starting point. Buyers may offer less, and you decide what to accept.

Asset sale or share sale?

In an asset sale, the buyer buys the things the business owns, like equipment, stock and the name. In a share sale, the buyer buys your company itself, including its contracts and history. Taxes differ a lot between the two, so ask your accountant which suits you.

What is a letter of intent (LOI)?

A short document that writes down the main points you and a buyer agree on, like the price and closing date, before the full purchase agreement. Most of it is usually not binding, but parts like confidentiality often are. Have your lawyer review it before you sign. Read the simple LOI guide.

What is due diligence?

The checking a buyer does before the sale is final. They look at your books, leases, contracts and equipment to make sure everything is as you described. It usually takes a few weeks.