Free tool
Business valuation estimator.
Most small, owner-operated businesses sell for roughly 2 to 4 times seller’s discretionary earnings (SDE). Enter your numbers for an honest range, with no email required.
How small businesses are priced
Buyers of small businesses price off SDE (also called owner’s discretionary cash flow): net profit plus the owner’s salary, benefits, interest, depreciation, amortization, and one-time expenses. The multiple a buyer pays depends on the industry first, and then on growth, customer concentration, documentation, and how well the business runs without the owner.
Where you land inside a range matters more than the range itself. A business with clean books, recurring revenue, and a manager in place commands the top; a business that is the owner commands the bottom.
Typical SDE multiple ranges
| Industry | Typical SDE multiple |
|---|---|
| Restaurants & food service | 1.5x - 2.5x |
| Retail | 1.5x - 2.5x |
| E-commerce | 2.0x - 3.5x |
| Manufacturing | 2.5x - 4.0x |
| Construction & trades | 2.0x - 3.0x |
| Professional services | 2.0x - 3.5x |
| Healthcare practices | 2.5x - 4.0x |
| Auto services | 2.0x - 3.0x |
| Distribution & wholesale | 2.5x - 3.5x |
| Other services | 1.5x - 3.0x |
Ranges reflect commonly observed asking and closing multiples for small owner-operated businesses. They are educational, not an appraisal.
Estimate your business’s value
Estimated value range
This is an educational estimate, not a valuation, appraisal, or offer. A real price comes from diligence: verified financials, add-backs, contracts, and the market for your specific business.