Businessappraisal

Blog

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, read as a range.

Read article
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.

Read article
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 versus larger companies.

Read article
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, higher for larger ones.

Read article
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 typical ranges and drivers.

Read article
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 formulas and where they mislead.

Read article
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 add recurring revenue.

Read article
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 what moves your multiple.

Read article
Guides 9 min read

Business Appraisal: What It Is, What It Costs, and When You Need One

Business appraisal explained: the credentialed opinion of what a company is worth, what it costs in 2026, and when a fast estimate is enough instead.

Read article
Guides 8 min read

Selling a Dental Practice: The Best Way to Sell to a DSO, a Private Buyer or a Broker

Selling a dental practice: the median sold at 2.48x SDE for $350,000. What a DSO pays against a private buyer, and why the crossover sits near $500k EBITDA

Read article
Guides 8 min read

Buying a SaaS Business: What to Pay, Based on What Buyers Actually Paid

Buying a SaaS business: the median closed at $625,000, 2.99x owner earnings. What to offer, where SBA financing caps you, and what to verify before you close.

Read article
Guides 9 min read

Selling a Gas Station: What 796 Sold For and How to Price Yours

Selling a gas station: the median sold for $615,000 at 3.00x owner earnings in 128 days, at 1.00 times asking price. Why discounting to sell costs you money.

Read article
Guides 8 min read

Selling a Restaurant: What Restaurants Actually Sell For and the Best Way to Get It

Selling a restaurant: the median sold for $220,000 at 1.85x owner earnings after 178 days. Why pricing high and negotiating down does not work.

Read article
Guides 8 min read

Selling an Accounting Practice: What CPA Firms Sell For and the Best Way to Sell Yours

Selling an accounting practice: the median sold at 1.02x gross fees for $425,000. What a CPA buyer pays versus a capacity buyer or a platform.

Read article
Guides 8 min read

Selling an Insurance Agency: The Best Way to Sell to an Aggregator, a Perpetuation Buyer or a Broker

Selling an insurance agency: the median sold at 2.70x SDE for $497,500. What an aggregator pays versus an individual buyer, and why size decides it.

Read article
Guides 8 min read

Sell My HVAC Business: What Private Equity Pays and What to Fix First

Sell my HVAC business: the median sold at 2.58x SDE for $750,000, the upper quartile at 3.33x. What sets the ceiling and what to fix before you list.

Read article
Guides 9 min read

Sell My Business to Private Equity: Should I Sell My Business to a Private Equity Firm, and What Will They Pay?

Sell my business to private equity: what a platform deal pays versus an add-on, how rollover equity works, and when a sponsor is the wrong buyer for you.

Read article
Guides 9 min read

How to Find Out How Much a Business Sold For: Where to Find Comparable Sales Data and Business Sale Comps

How to find out how much a business sold for, using seven sources of comparable sales data, what each one actually reports, and what it costs to access.

Read article
Guides 10 min read

Small Business Appraisal Cost: How Much Does a Business Appraisal Cost and What Does a Business Valuation Cost?

Small business appraisal cost explained: what a certified appraisal, a calculation engagement, and a full valuation cost in 2026, and which one you need.

Read article
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 one, who is qualified, who pays, and what a low result means for the deal.

Read article
Buying 9 min read

SBA Loan to Buy a Business: 2026 Requirements, Down Payment, and the Price It Will Finance

SBA loan to buy a business in 2026: the 10 percent down payment rule, the coverage test lenders apply, and the purchase price multiple it caps you at.

Read article
Valuation methods 8 min read

How Accurate Are Business Valuation Calculators? An Honest Answer

How accurate are business valuation calculators? Where they land close, the five inputs that throw them off, and how to test the number.

Read article
Valuation methods 8 min read

What Is a Good EBITDA Margin? Benchmarks by Industry for 2026

What is a good EBITDA margin? The median US sector ran 16.57 percent in 2026. Sector benchmarks, what buyers finance, and what margin is worth.

Read article
Valuation methods 8 min read

How Many Times Profit Is a Business Worth? Revenue, Net Profit and SDE Multiples Compared

How many times profit is a business worth in 2026? Most small businesses sell for 2 to 3 times SDE, not net profit. Real multiples, with a worked example.

Read article
Valuation methods 8 min read

Revenue Multiple vs EBITDA Multiple: Which One Values Your Business?

Revenue multiple vs EBITDA multiple: the margin identity that connects them, when each is the right tool, and which one a buyer will finance.

Read article
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: typical revenue multiples by business type and how to sanity-check it.

Read article
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, and how it becomes a valuation multiple.

Read article
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, or a lender requires a credentialed appraisal, and when an estimate is enough.

Read article
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: the adjusted net asset method, book value vs fair market value.

Read article
Guides 10 min read

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

How to value a business with no profit or that is losing money: the three approaches buyers actually use, and why revenue and assets set the floor.

Read article
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 means, the four levels of valuation work, and when a credentialed appraiser is required.

Read article
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, when minority and marketability discounts apply, and how buyouts get financed.

Read article
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, and how to sell faster.

Read article
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, and how it affects the sale price.

Read article
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 lender add-ons.

Read article
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, and the clauses that protect a seller.

Read article
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.

Read article
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.

Read article
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.

Read article
Guides 11 min read

How to Sell a Business Without a Broker: The FSBO Process, What It Costs, and When to Use One Anyway

How to sell a business without a broker: the seven-step FSBO process, what it really costs, and the mistakes that cost more than the commission.

Read article
Guides 10 min read

Letter of Intent to Purchase a Business: What an LOI Covers in a Business Sale and How Binding It Is

Letter of intent to purchase a business: what an LOI covers, which clauses bind, how long exclusivity runs, and how buyers retrade the price.

Read article
Guides 10 min read

Quality of Earnings Report: What It Is, What It Costs, and How It Differs From an Audit

Quality of earnings report explained: what a QoE covers, what it costs in 2026, how long it takes, and how it differs from an audit.

Read article
Guides 11 min read

Adjusted EBITDA Add-Backs: What Buyers Actually Accept in a Business Sale

Adjusted EBITDA add-backs explained: which owner salary and one-time adjustments buyers accept, which they dispute, and which get rejected.

Read article
Selling 10 min read

Business Broker Fees: How Much Do Business Brokers Charge to Sell a Business?

Business broker fees explained: commission rates by deal size, how the Lehman and Double Lehman formulas work, minimum fees and retainers.

Read article
Fundamentals 9 min read

Capitalization Rate vs Discount Rate in Business Valuation

Capitalization rate vs discount rate explained: what each is applied to, why they differ by the growth rate, and when to use each in a valuation.

Read article
Selling 9 min read

Working Capital in a Business Sale: How Much Is Included and Who Keeps the Receivables

Working capital in a business sale: how much is included, how the peg is set from a trailing twelve month average, and who keeps the receivables.

Read article
Valuation 9 min read

How to Calculate Maintenance Capex for a Business Valuation

How to calculate maintenance capex for a business valuation: the asset register method, the depreciation proxy, and what a buyer will deduct.

Read article
Software 8 min read

Best Business Valuation Software for Accountants and CPA Firms

Best business valuation software for accountants and CPA firms, compared on price, report output and comparable data, with what to buy by firm profile.

Read article
Software 8 min read

Best Business Valuation Software for Business Brokers

Best business valuation software for business brokers, compared on price and fit, plus the SBA coverage ratio that sets your real listing ceiling.

Read article
Software 8 min read

Best Business Valuation Software for Financial Advisors

Best business valuation software for financial advisors, compared on price and output, plus the line between a planning estimate and a valuation opinion.

Read article

Put it into practice

Enter your high-level financials and get a valuation estimate in minutes. Transparent pricing, educational estimate not a certified appraisal.