Business valuation calculator
What would a buyer pay for your company?
Get an estimated value range for a company with $5 million to $50 million in revenue, and see which problems are pulling the price down, in dollars. It takes about three minutes.
No email, no sign-up
Your numbers stay in your browser. Nothing is sent to me or anyone else.
Built on published deal data
Multiples come from private-company transaction studies, by industry and size.
Made by a CFO who has bought and sold companies
I've bought more than 15 companies and been on the seller's side of three sales.
Estimated enterprise value
What's holding the number down
Each item shows roughly what it costs you at today's profit, and what usually fixes it.
Which of these is worth fixing first? That depends on how soon you want to sell and what each fix costs. In 15 minutes I can usually tell you where the biggest dollar is.
Track your number over time
Save today's estimate, then come back after you fix something and see how far it moved. Saved estimates stay in this browser on this device.
How the estimate works
The same math a buyer does
1. Start from the profit a buyer will actually get. Buyers price adjusted EBITDA. That's your EBITDA plus owner pay above what a hired president would cost, plus one-time costs that won't come back. Every add-back has to survive the buyer's accountants, so keep them honest.
2. Apply the multiple companies like yours sell for. Each industry trades in a range, and bigger companies get higher multiples because they carry less risk. The table below shows the ranges this calculator uses and where they come from.
3. Move the multiple up or down for what the buyer finds. Two companies with the same profit can sell a full turn or two apart. The five questions in step 2 are the ones that move the price most often in the deals I've worked on. The size of each adjustment follows published advisor guidance where it exists. Customer concentration, for example, commonly costs 10 to 20 percent of the price when one customer is 20 to 30 percent of revenue.
4. Compare it with a buyer-ready version. The second range assumes the same profit with each gap closed to the level most buyers look for: no customer above 20 percent of revenue, at least half of revenue under contract, a team that runs things without you, CPA-reviewed statements and steady growth.
The result is enterprise value: what a buyer pays for the business before your debt is paid off and before cash is taken out. What you keep after the sale depends on debt, taxes and deal terms like earnouts and seller notes.
Reference
EBITDA multiples by industry
Ranges for private companies with about $1 million to $5 million of adjusted EBITDA, drawn from published deal studies and banker surveys. Smaller companies usually sell below these ranges and larger ones above, as the second table shows.
| Industry | Range | Typical | What moves a company to the top |
|---|---|---|---|
| Marketing, media or advertising agency | 4.0x to 7.5x | 5.5x | Retainers above 70 percent of revenue, a specialty, no client above 15 percent of revenue |
| Call center or BPO | 4.0x to 7.0x | 5.5x | Multi-year contracts, a broad client mix, stable delivery margins |
| PEO, payroll or HR services | 4.5x to 8.0x | 6.0x | High client retention, growing worksite employee count, a clean compliance record |
| SaaS or software | 6.0x to 12.0x or 3.0x to 5.0x revenue | 8.0x | Low churn, net revenue retention above 100 percent, growth with profit |
| Wholesale distribution | 4.5x to 7.5x | 6.0x | Exclusive product lines, strong inventory turns, a broad customer base |
| E-commerce or online retail | 3.5x to 6.5x | 4.5x | An owned brand, repeat buyers, little dependence on one marketplace or ad channel |
| IT services or managed services | 5.0x to 8.5x | 6.5x | Managed service contracts as most of revenue, low client churn |
| Manufacturing | 4.5x to 7.0x | 5.8x | Proprietary products, long customer relationships, modern equipment |
| Construction, trades or home services | 3.5x to 7.0x | 5.0x | Service and maintenance agreements, a steady backlog, a strong field management bench |
| Healthcare services | 5.0x to 8.5x | 6.5x | Several locations, a good payer mix, providers who stay after the sale |
| Professional services or consulting | 4.0x to 7.0x | 5.5x | Client relationships held by the team, repeat engagements |
| Transportation and logistics | 3.5x to 6.0x | 4.5x | Contracted freight and a strong safety record. Asset-light brokers often sell above this range |
| Staffing | 4.0x to 6.5x | 5.0x | Professional, IT or healthcare placements, which sell above light industrial |
| Other business services | 4.0x to 7.0x | 5.5x | Recurring contracts, a team that runs the work without the owner |
| Adjusted EBITDA | Change to the industry range | Why |
|---|---|---|
| Under $1M | -1.5x | Fewer buyers, mostly individuals using SBA loans. Usually priced on SDE through a broker. |
| $1M to $2.5M | -0.5x | Individual buyers, search funds and private equity add-ons compete. |
| $2.5M to $5M | +0.5x | Private equity starts to look at the company as a platform. |
| $5M to $10M | +1.25x | More private equity and strategic buyers, and cheaper financing. |
| Over $10M | +2x | Institutional buyers, lower perceived risk, more competition for the deal. |
Published figures for PEOs and call centers at this size are scarce, so those two ranges lean on business-services data. Sources:
- Pepperdine Private Capital Markets Report, investment banker survey of EBITDA multiples by industry and size, as summarized by Praxis Rock (July 2026)
- GF Data private equity deal multiples, as reported by Mercer Capital (Summer and Fall 2026)
- IBBA and M&A Source Market Pulse, Q2 2026 (deals of $5M to $50M at 5.8x EBITDA)
- FE International, agency valuation multiples (October 2026)
- Aventis Advisors, IT services valuation multiples (October 2026)
- SaaS Capital, private SaaS valuations (2025) and private SaaS M&A, Q1 2026
- Eightx, e-commerce brand valuations (June 2026) and Quiet Light (2025)
- CT Acquisitions, home services M&A multiples (2026)
- UHY via American Staffing Association, staffing M&A (2025)
- Advisor guidance on customer concentration discounts, compiled by Iconic (July 2026)
How to raise the number
What buyers pay more for
Most of what raises a sale price is work you can start a year or two before you sell. Here is what each of the five questions is really asking, plus the one thing the calculator handles for you: size.
Customer concentration
No customer the buyer can't afford to lose
When one customer brings in a third of revenue, the buyer is pricing the day that customer leaves. Expect a lower multiple, an earnout tied to keeping that account, or both. Getting every customer under about 15 percent of revenue takes time, which is why it belongs at the top of an exit plan.
Recurring revenue
Revenue that shows up without being sold again
Contracts, retainers and subscriptions give a buyer revenue they can count on in year one. Project work that has to be won every month is worth less, even at the same margin. Moving steady customers onto agreements with renewal terms is one of the faster ways to raise the multiple.
Owner dependence
A business that runs without you
If the biggest relationships and the key decisions all go through you, the buyer is buying a job along with a company. They protect themselves with a lower price, a long transition or an earnout. A capable second layer of management, written processes and client relationships held by your team all reduce that discount.
Financial statements
Numbers a buyer can trust quickly
A buyer will run a quality of earnings review on your books. Clean monthly closes, reviewed or audited statements and add-backs you can document make that review faster and keep the price from being chipped away late in the deal. This is usually the cheapest fix on the list.
Growth
A trend line that points up
Buyers pay for where the business is heading, and they read the last two or three years to judge it. Flat or shrinking revenue makes every other risk look bigger. Steady growth, even at 5 to 10 percent a year, supports a higher multiple and an easier story to tell.
Size
More profit gets a higher multiple
Moving from $1 million to $3 million of EBITDA raises the price twice: once because there is more profit to multiply, and again because larger companies attract more buyers, including private equity, and those buyers pay higher multiples.
Why a CFO built this
I've sat on both sides of the table
Most valuation calculators are built for small businesses that sell through brokers. This one is built for founder-led companies with real management teams, real books and real options. It reflects what I've seen buyers check, discount and pay for, from both sides of the deal.
More than 15 acquisitions
On the buy side, I've bought more than 15 companies and run the full integration after closing.
CertiPay, sold to Vensure
As CFO of a $285 million PEO, ASO and HR software business, I helped deliver an 11x EBITDA turnaround on 30 percent revenue growth before the sale.
Ace Auto Parts, sold to Carquest
As controller and then CFO, I helped take the company through a NASDAQ IPO and seven acquisitions to a premium sale.
800 Travel Systems, sold to Intrawest
As CFO and later board-appointed interim CEO, I ran the sale process after 9/11 that protected the company's value and its employees.
Questions owners ask
Business valuation FAQ
How much is my business worth?
For most private companies with $1 million to $5 million of adjusted EBITDA, buyers pay somewhere between about 4 and 7.5 times that profit. Where you land depends on your industry, your size and the five things the calculator asks about. Run your numbers above for a range specific to your company.
Is a business worth 5 times profit?
Sometimes. Five times EBITDA is a common middle for companies with $1 million to $5 million of EBITDA. Businesses under $1 million of profit usually sell for less, often 3 to 4.5 times EBITDA, or 2 to 3.5 times SDE. Companies above $5 million of EBITDA often sell for 6.5 to 8 times or more. Profit alone never sets the multiple. Customer concentration, recurring revenue and how much the company depends on the owner can move it a full turn either way.
What's the difference between EBITDA and SDE?
Seller's discretionary earnings (SDE) adds the owner's entire pay back into profit. Brokers use it for small businesses where the buyer will run the company themselves. EBITDA assumes the buyer pays a manager a market salary, so only the part of your pay above market gets added back. Above about $1 million of profit, most buyers price on EBITDA, and that's what this calculator uses.
What is enterprise value, and is that what I take home?
Enterprise value is the price for the whole business, before debt is paid off and before cash is taken out. Your proceeds are enterprise value minus debt, plus excess cash, minus taxes and deal costs. How the price is paid matters too. Part of it may come later through an earnout or a seller note.
How do I increase what a buyer will pay?
Start with the items the calculator puts the biggest dollar figure on. In most companies the order is: get the books review-ready, reduce how much the business depends on you, move repeat customers onto contracts, and spread revenue across more customers. Most of this takes 12 to 24 months, so the best time to start is well before you talk to a buyer.
Is this a formal valuation?
No. It's an estimate for planning, based on published ranges and the answers you give. A formal valuation, a quality of earnings report and real offers from buyers will each give a more precise number. Use this to see where you stand and what to work on.
Where are my numbers stored?
Only in your browser on your device. Nothing is sent to me or to anyone else, and you never have to give an email. If you clear your browsing data or switch computers, your saved estimates won't follow you.
Thinking about a sale in the next few years? Bring your estimate to a 15-minute call.
Or text me directly at (727) 455-9905.