Businessappraisal

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Business valuation, explained

Guides and practical playbooks for learning how to value a business, choosing the right method, reading revenue and EBITDA multiples, comparing SDE and EBITDA, and raising your value before a sale.

Guides 11 min read

How to Value a Business: A Step-by-Step Guide

How to value a business using three methods together: revenue multiple, EBITDA or SDE multiple, and discounted cash flow, then how to read the result as an estimated range.

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Fundamentals 10 min read

Business Valuation Methods Explained: Multiples, DCF, and Asset-Based

Business valuation methods explained in plain English: earnings multiples, discounted cash flow, comparable sales, and asset-based value, and when each one fits.

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Fundamentals 9 min read

SDE vs EBITDA: What Is the Difference and When to Use Each

SDE vs EBITDA compared: what each earnings measure includes, how add-backs differ, and which one buyers use to value small businesses versus larger companies.

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Guides 9 min read

What Is a Good EBITDA Multiple? Ranges by Size and Industry

What is a good EBITDA multiple depends on company size, industry, and growth. Typical ranges run 3x to 6x for small businesses and 8x to 12x or more for larger companies.

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Benchmarks 10 min read

Average Business Sale Multiple by Industry: Benchmarks for 2026

Average business sale multiples by industry, from SaaS at 4x to 6x ARR to restaurants and agencies at 2x to 3x SDE, with a table of typical ranges and what moves them.

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Guides 9 min read

Rule of Thumb Business Valuation: Quick Formulas and Their Limits

Rule of thumb business valuation uses simple multiples of revenue or earnings for a fast estimate. Learn the common formulas, where they work, and where they mislead.

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Playbooks 11 min read

How to Increase Business Value Before Selling: A Practical Playbook

How to increase business value before selling: grow and diversify earnings, clean up the books, reduce owner dependence, and lock in recurring revenue to earn a higher multiple.

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Guides 9 min read

What Multiple Does My Business Sell For? How to Estimate Yours

What multiple does my business sell for depends on your model, size, growth, and margins. Learn the typical ranges and the factors that push your multiple up or down.

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Guides 10 min read

Business Valuation Cost: How Much Does a Business Valuation Cost?

Business valuation cost explained: what a small business, mid-market, SBA, and litigation valuation actually costs in 2026, why quotes vary so widely, and when a free estimate is genuinely enough.

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Buying 9 min read

Business Valuation for an SBA Loan: When Lenders Require One

Business valuation for an SBA loan: the 250,000 dollar threshold that triggers an independent valuation, who is qualified to perform it, who pays, and what happens if it comes in below the purchase price.

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Guides 9 min read

Business Valuation Based on Revenue: How to Do It and When It Works

Business valuation based on revenue uses a multiple of sales for a fast estimate. Learn the typical revenue multiples by business type, why buyers still trust earnings more, and how to sanity-check a revenue-based number.

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Fundamentals 10 min read

How to Calculate SDE: Seller's Discretionary Earnings, Step by Step

How to calculate seller's discretionary earnings (SDE): the formula, which add-backs are legitimate, which ones buyers reject, and how SDE turns into a business valuation through a market multiple.

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Fundamentals 11 min read

Certified Business Appraisal vs an Estimate: Which Do You Need?

Certified business appraisal or a valuation estimate: when the IRS, a court, a lender, or an ESOP legally requires a credentialed appraisal, when an estimate is genuinely enough, and what the penalties are for getting it wrong.

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Fundamentals 10 min read

Asset-Based Business Valuation: When to Use It and How It Works

Asset-based business valuation sets value from what a company owns minus what it owes. Learn the adjusted net asset method, book value versus fair market value, when the asset approach beats earnings, and how to calculate it.

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Guides 10 min read

How to Value a Business With No Profit or That Is Losing Money

How to value a business that has no profit or is losing money: the three approaches buyers actually use for unprofitable companies, why revenue and assets set the floor, and how to price a turnaround honestly.

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Fundamentals 10 min read

Business Appraisal vs Business Valuation: What Business Appraisal Means and Which One You Need

Business appraisal vs business valuation: what business appraisal actually means, the four levels of valuation work and what each costs, and when a lender, court, or the IRS requires a credentialed appraiser.

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Guides 11 min read

Partner Buyout Valuation: How to Value a Partner Share of a Business and Set a Fair Buyout Price

Partner buyout valuation explained: how to value a partner share of a business, when minority and marketability discounts apply, what makes a fair buyout price, and how buyouts get financed.

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Selling 9 min read

How Long Does It Take to Sell a Business? Timeline, Averages, and How to Sell Faster

How long it takes to sell a business: the typical six to twelve month timeline, current median days on market, why some businesses take longer, and how to sell faster.

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Selling 10 min read

Seller Financing a Business Sale: How It Works, Terms, Down Payments, and How It Affects Price

Seller financing a business sale explained: how owner financing works, typical down payments and terms, how it affects the sale price, and how to protect yourself as the seller.

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Selling 11 min read

Documents Needed to Sell a Business: The Full Due Diligence Checklist

Documents needed to sell a business, from three years of tax returns and a normalized earnings schedule to leases, contracts, and what an SBA lender adds on top.

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Selling 11 min read

Earnout in a Business Sale: How It Works, Typical Terms, and the Risks to a Seller

Earnout in a business sale explained: what percentage of the price is typical, which metric to use, how earnouts are taxed, and the clauses that protect a seller.

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Guides 10 min read

Business Valuation for Divorce: How a Business Is Valued, What It Costs, and Who Can Sign the Report

Business valuation for divorce explained: how a business is valued, which valuation date applies, how goodwill is treated, and what a report costs.

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Selling 10 min read

How to Prepare a Business for Sale: A 12 to 24 Month Plan for Getting a Business Ready to Sell

How to prepare a business for sale over 12 to 24 months: clean financials, defensible add-backs, less owner dependence, and a diligence file buyers trust.

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Guides 10 min read

How to Value a Business With Recurring Revenue: Multiples, Retention, and What Subscription Revenue Is Worth

How to value a business with recurring revenue: ARR and MRR, retention and churn benchmarks, and the multiple ranges recurring contracts actually earn.

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Put it into practice

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