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Business Valuation Estimate

Key Performance Indicators

Please add your basic business information. We will use this data to calculate the business value and probability of selling.

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STEP 1 / 11

Enter your gross receipts from your business activities last year rounded to the nearest dollar.

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STEP 2 / 11

Enter amount for one working owner that was expensed.

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Enter total interest expense (exclude interest from floor plans).

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STEP 4 / 11

Enter the depreciation expense from last year.

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STEP 5 / 11

Enter the Amortization expense from last year, if any.

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STEP 6 / 11

Enter any other Income or Expense from last year that are non-recurring. Examples include moving expense, unusual legal or accounting fees. You may also enter negative numbers if you need to adjust for rent or other expense that a buyer will have that you didn't.

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STEP 7 / 11

Enter perks such as auto, travel, retirement benefits, etc., that are soley for the owner's benefit.

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STEP 8 / 11

The bottom line, what was the profit last year. Ok to enter negative amounts.

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STEP 9 / 11

This is the financial benefit of ownership!

Enter a multiple of earnings from 1 to 5. Example = 2.3. Use a lower multiple for businesses with low SDE (thus high risk) and a higher multiple for those with higher SDE (has lower risks). Said another way; if SDE is below $200,000, use a lower multiple or if above, use a higher multiple. Note, this tool is not recommended for real estate intensive businesses such as hotels, car washes, gas stations, RV parks, etc.

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STEP 10 / 11











Sellers Discretionary Earnings

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This is the financial benefit of ownership!


Annual Remaining Profit

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On average, what does the business spend annually on new equipment? By way of example, a professional firm could have lower capital expenditures for desks and computers vs an Excavation Company that buys expensive tractors. If you're unsure, a good rule of thumb is the current value of your equipment divided by 10.


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Your Estimated Business Value

Are your Numbers Realistic?

Let's Run a Sanity Check...





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Would you like to recieve a detailed breakdown of your business value estimate?

Add your email and we will send you a pdf with a detailed breakdown of your results.


Would you like to recieve a detailed breakdown of your business value estimate?

Add your email and we will send you a pdf with a detailed breakdown of your results.

Summary

Description Information Quantity Price
Discount :
Total :

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How Much is My Business Worth?

One of the most important steps in selling a business is pricing it correctly. If you take it to market asking too much, you alienate your best prospects. Price it too low and you risk leaving money on the table.

Getting a valuation of your business is the process of determining the economic value of a business changing hands between a willing buyer and a willing seller.

At Evolution Advisors, we have relationships with business valuation firms and will advise you on the different types of valuation services available and associated fees. We work with you during the valuation process to help determine the information needed for an accurate appraisal. Certified and accredited professionals provide all Business valuations.

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So How is the Price Determined?

Fundamentally, a buyer purchases a business for income or cash flow. Cash flow can be expressed in many ways, typically either as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) or Seller’s Discretionary Earnings (SDE). In small business transactions, we start with SDE or EBITDA, as this is the most common basis for establishing a price to take your business to market.

As you would imagine, the more cash flow there is, the more a buyer will be likely to pay to get it. But it’s not just that simple… cash flow comes with risk and determining the risk in the cash flow is just as important. Some of these “risk” items include- market competitiveness, customer concentration, key employees, owner’s role in the business, vendor concentration, legal exposure, and more. Getting a proper valuation includes determining the true cash flow (SDE or EBITDA), and an analysis of the company’s key risk factors.
Call Evolution today at (916)-675-6595 and discover the options you have to sell your business for the highest value possible.
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The First Step in Getting a Valuation

At Evolution Advisors, we’re in touch daily with networks of thousands of buyers and sellers, both globally and locally as well as other business broker intermediaries throughout the country. As a result, we have a pulse on what’s really happening in the business of selling a business.
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