Business valuation calculator
General information, not financial, tax or legal advice. A licensed valuer or your accountant can value the business itself.
Enter a year's earnings and a multiple, and this works out earnings times the multiple. It is the sum most small business prices start from. It knows nothing about your business, so the multiple is yours to choose.
Signetry does not suggest a multiple. It will publish the median multiple for each industry from its own listings once the board has enough of them.
What moves a multiple
Up
- Earnings that have held or grown for several years.
- A business that runs without the owner.
- Many customers, none of them a large share of revenue.
- A long lease that transfers to the buyer.
- Systems, staff and records a buyer can take over.
Down
- Earnings that swing from year to year, or are falling.
- An owner the customers or suppliers deal with personally.
- One or two customers carrying most of the revenue.
- A short lease, or a licence or franchise that may not transfer.
- Records a buyer cannot check.
AU