Frequently Asked Questions
Why do you give me a range and not an exact value?
Calculating the price for which a business would sell for is a complicated process, in order to determine a more precise value we need to know more about your business. Ultimately however, a business is only worth what a buyer is willing to pay. This tool is designed to help at least give you a starting point.
What changes if my SDE is over $250,000?
Companies that produce more than $250,000 in SDE and EBITDA are valued at a different, higher rate because of the increased returns the company produces for an owner. These valuations are often even more complicated.
What if I want a more precise number?
If you need a more precise number for use to sell your business on the open market, contact us and we can perform a Market Price Opinion based on past sales history and current comps in your industry.
Where do you get the multiples?
The multiples are obtained from an industry database that combines past sales data for small business transactions. They are a 'rule of thumb,' meaning that depending on each individual business and situation the actual value of the business may be higher or lower depending on many qualitative factors.
What if my industry is not listed?
We purposely do not list some industries whose values are not based on SDE and based on other financial indicators like revenue, monthly cash flow, or client count. If your industry is not listed, you can use the general small business multiples or contact us for a review of your business.
*Please note that inputted data points will be shared with Transworld Business Advisors of Quebec LLC. All information will be kept confidential.