5 professional methods — SaaS, services, e-commerce, local businesses
| Method | Low | Mid | High | Your Value |
|---|
SaaS / Subscription: Revenue: 3-12× | EBITDA: 15-30× | SDE: 3-5×
E-commerce (FBA): Revenue: 1-4× | EBITDA: 8-20× | SDE: 2-4×
Professional Services: Revenue: 0.5-2× | EBITDA: 4-9× | SDE: 1.5-3×
Local Service: Revenue: 0.3-1× | EBITDA: 2-5× | SDE: 1-2.5×
Content / Blog: Revenue: 1-5× | EBITDA: 6-15× | SDE: 2-4×
Ready to sell or looking to buy? List on the top business marketplaces to reach serious buyers:
Flippa — Buy & Sell Businesses →Estimates for educational purposes only. Business valuation requires professional analysis including market conditions, customer concentration, growth trajectory, and more. Consult a business broker or M&A advisor for transaction-ready valuations.
Tools that pair well with this calculator — selected by our team.
| Tool | Best For | Network |
|---|---|---|
| Empire Flippers | Sell your online business | Direct |
| DealCheck | 30% recurring | Awin |
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Business valuation depends on: annual profit × industry multiple, asset value, revenue multiple, or discounted cash flow. Most small businesses sell for 1-3x SDE (Seller's Discretionary Earnings) or 3-5x EBITDA.
BizBuySell, BizQuest, and MicroAcquire show actual sale prices. Sageworks and RMA data provide industry benchmarks. The multiple depends on: industry growth, recurring revenue, owner dependence, and margins.
Customer concentration (one client = >20% revenue), heavy owner dependence, declining margins, short customer contracts, and regulatory risks all reduce multiples. Diversification and documented processes increase value.
An LOI outlines basic deal terms before full due diligence. It's not binding (except for exclusivity and confidentiality), but signals serious intent. Negotiate price, terms, and timeline in the LOI.