Professional valuation services for small businesses. Get accurate, reliable valuations for companies under $10M using proven methodologies and current market data.
Small business valuation determines the economic worth of businesses typically generating under $10M in annual revenue. Unlike large corporations, small businesses require specialized approaches that account for:
Source: Small Business Administration (SBA)
Seller's Discretionary Earnings (SDE) represents the total financial benefit a single owner-operator derives from the business:
*Multiples vary by specific industry, size, growth, and risk factors
Analyzes recent sales of similar businesses in your industry and market area.
Industry-specific multiples and benchmarks used as cross-checks.
Most small businesses depend heavily on the owner's involvement, creating valuation challenges:
Impact: May require significant discounts for businesses that cannot operate without the owner.
Small businesses often have incomplete or informal financial records:
Solution: Professional normalization and adjustment of financial data is critical.
Small businesses face restricted market conditions:
Impact: May require marketability discounts of 10-30% depending on circumstances.
Small businesses often experience irregular earnings patterns:
Approach: Requires careful analysis of multiple years and normalization of non-recurring items.
We analyze your business model, industry, and collect 3-5 years of financial records, tax returns, and operational data.
We adjust financial statements for owner compensation, personal expenses, and one-time items to determine true economic earnings.
We research industry multiples, comparable sales, and market conditions affecting your business type and location.
We apply appropriate methods (typically SDE multiples and market approach) and reconcile to a final value conclusion.
We evaluate business-specific risks and apply appropriate discounts or premiums based on marketability, control, and other factors.
Costs typically range from $3,000-$8,000 depending on business complexity. We offer Business Value Assessments for simpler needs starting at lower fees.
SDE includes owner's salary and benefits, while EBITDA assumes market-rate management. SDE is better for owner-operated businesses under $5M.
Online calculators provide rough estimates but can't replace professional analysis. Use them for initial estimates, but get professional valuation for important decisions.
Focus on reducing owner dependency, improving financial systems, diversifying revenue streams, and building management team. See our value enhancement guide.
Financial statements (3-5 years), tax returns, business licenses, lease agreements, customer/supplier contracts, and any buy-sell agreements. We provide a detailed document checklist.
No business is too small if the valuation serves an important purpose. Even very small businesses benefit from professional analysis for sales, legal matters, or strategic planning.
Key Factors: Client relationships, recurring revenue, owner dependency, service delivery systems
Key Factors: Location, inventory management, brand value, online presence, customer base
Key Factors: Equipment value, customer contracts, production capacity, supply chain relationships
We have experience valuing businesses across dozens of industries. Each sector has unique characteristics that affect value.
Discuss Your IndustryGet an accurate, professional valuation from a certified expert. Whether you're selling, planning, or need it for legal purposes, we provide reliable valuations you can trust.