{"built":"2026-10-06","pages":[{"slug":"home","url":"https://bizvaluedash.com/","type":"page","title":"BizValueDash: know what your business is worth, every month","description":"One monthly dashboard report: your numbers, the market's numbers, and the indicated value of your business. Board, lender and shareholder ready.","text":"I'm not planning to sell. Why track value? Value matters for retirement planning, borrowing, bringing in a partner and insurance. The same fixes that raise value usually make the business more profitable now. My books are a mess. Can you still do this? Yes. Messy books lower value on their own, so the first report says where the gaps are and what to tidy first. Is this a formal valuation? No. It is an indicative estimate for tracking and decisions. If you need a valuation for tax, legal, lending or a transaction, that is a separate engagement. What do you need from me? Access to your accounting data, by QuickBooks connection or export, and a short questionnaire about things the books can't show, such as how much the business depends on you. How do I get the report? As a PDF by email every month, ready to share with your board, bank or partners."},{"slug":"ai-connector","url":"https://bizvaluedash.com/ai-connector","type":"page","title":"AI connector","description":"Connect an AI assistant to BizValueDash to search the guides and get an indicative business value range. Read-only, no sign-up.","text":"BizValueDash runs a read-only Model Context Protocol (MCP) server, so AI assistants that support MCP can look things up here directly.\n\n> Server URL: https://bizvaluedash.com/mcp\n\nIt needs no account and no API key. It cannot change anything and it stores nothing you send.\n\n## What it can do\n\n| Tool | What it returns |\n| --- | --- |\n| search_guides | The guides, glossary entries and pages that best match a question |\n| get_page | The full text of one page |\n| estimate_value_range | An indicative value range from yearly earnings and industry, with the multiples and sources used |\n\n## How to add it\n\nIn an assistant that supports custom connectors, add a new connector and paste the server URL above. The transport is Streamable HTTP.\n\n## About the value estimate\n\nThe estimate multiplies the earnings you enter by publicly reported average sale multiples for your industry. It is an indicative range for planning. It is not a formal valuation, appraisal or opinion of value, and should not be relied on for tax, legal, financing or transaction purposes. The method and sources are described in business valuation multiples by industry.\n\n## Other machine-readable files\n\n- llms.txt: a plain-text index of this site\n- content-index.json: every page as structured text\n- sitemap.xml"},{"slug":"business-valuation-multiples-by-industry","url":"https://bizvaluedash.com/guides/business-valuation-multiples-by-industry","type":"guide","title":"Business valuation multiples by industry","description":"Average earnings and revenue multiples for small business sales by sector and industry, what they mean, and how to use them without fooling yourself.","text":"A valuation multiple is the sale price of a business divided by its earnings or its revenue. Multiples from actual sales are the fastest way to get a rough sense of what businesses like yours sell for.\n\n> Quick version: across all sectors, small businesses sold for an average of 2.58 times seller's discretionary earnings and 0.67 times revenue. Industry averages run from about 2.1 to 3.4 times earnings.\n\n## Small business multiples by sector\n\nThese figures are averages for businesses sold on BizBuySell from Q3 2021 to Q2 2026 (source). The earnings multiple is sale price divided by seller's discretionary earnings (SDE). The median sale price across all sectors was $340,000, so these are mostly small, owner-operated businesses.\n\n| Sector | Earnings multiple (SDE) | Revenue multiple |\n| --- | --- | --- |\n| Online and technology | 3.28 | 1.09 |\n| Automotive and boat | 3.10 | 0.71 |\n| Manufacturing | 3.04 | 0.73 |\n| Health care and fitness | 2.72 | 0.75 |\n| Building and construction | 2.65 | 0.59 |\n| Retail | 2.63 | 0.55 |\n| Service businesses | 2.61 | 0.83 |\n| Financial services | 2.46 | 1.21 |\n| Food and restaurants | 2.27 | 0.42 |\n| Beauty and personal care | 2.12 | 0.54 |\n| All sectors | 2.58 | 0.67 |\n\n## Selected industries\n\n| Industry | Earnings multiple (SDE) | Revenue multiple |\n| --- | --- | --- |\n| Websites and ecommerce | 3.37 | 1.06 |\n| Insurance agencies | 2.87 | 1.52 |\n| Auto repair and service | 2.85 | 0.65 |\n| HVAC businesses | 2.83 | 0.60 |\n| Dental practices | 2.75 | 0.76 |\n| Plumbing businesses | 2.61 | 0.69 |\n| Landscaping and yard services | 2.49 | 0.72 |\n| Medical practices | 2.39 | 0.73 |\n| Accounting and tax practices | 2.27 | 1.08 |\n| Cleaning businesses | 2.25 | 0.72 |\n| Restaurants | 2.18 | 0.39 |\n\n## Larger businesses sell for higher multiples\n\nThe figures above describe small, owner-operated businesses. As businesses get bigger, buyers pay more for each dollar of earnings, because larger businesses tend to be less dependent on one person and attract more buyers.\n\nFor comparison, GF Data, which tracks private-equity-backed deals, reported an average of 6.4 times EBITDA for deals with an enterprise value of $10 million to $25 million in the first nine months of 2025 (as reported by CapitalPad). That is a different earnings measure and a different kind of buyer, so it is not directly comparable with the SDE multiples above. See SDE vs EBITDA.\n\n## How to use these numbers\n\n1. Work out your SDE. See what is my business worth?\n2. Multiply it by your industry's earnings multiple for a midpoint.\n3. Treat the result as the middle of a range, not an answer. Businesses in the same industry sell for well above and well below the average.\n\nOr use the free value check, which does the same calculation.\n\n## What the averages hide\n\n- They are averages. Many of the businesses behind each figure sold for less, some for much less.\n- They only cover businesses that sold. Businesses that never found a buyer are not in the data.\n- They mix good and bad businesses. Customer concentration, owner dependence and the quality of the books move the multiple more than the industry does.\n- They move. Multiples shift with interest rates, lending conditions and buyer demand.\n\nBizBuySell itself says the figures are useful as relative indicators but should not be relied on to value a specific business. That is the right way to read them.\n\n## Common questions\n\n### Should I use the earnings multiple or the revenue multiple?\n\nUse the earnings multiple first. Revenue multiples ignore profitability, so they overvalue low-margin businesses and undervalue high-margin ones. Use revenue as a cross-check.\n\n### Why is my industry's multiple lower than another industry's?\n\nBuyers pay less where earnings are harder to keep: thin margins, heavy competition, high staff turnover or dependence on the owner's personal relationships.\n\n### Do multiples change month to month?\n\nIndustry averages move slowly, but they do move. Rising interest rates make it more expensive for buyers to borrow, which tends to push multiples down. More active buyers in a sector tends to push them up."},{"slug":"glossary","url":"https://bizvaluedash.com/glossary","type":"page","title":"Business value glossary","description":"Plain-English definitions of the terms that come up when you ask what a business is worth, from add-backs to working capital.","text":"## Earnings terms\n\n### Add-back\n\nAn expense added back to profit to show what the business really earns for an owner. Typical add-backs are the owner's pay, interest, depreciation and one-off or personal costs. Buyers accept add-backs that are documented and will not recur.\n\n### Adjusted EBITDA\n\nEBITDA after removing one-off items and replacing the owner's actual pay with a market salary for the role. It is the earnings figure most buyers of larger private businesses use.\n\n### EBITDA\n\nEarnings before interest, tax, depreciation and amortization. A measure of operating profit that ignores how the business is financed and taxed.\n\n### Quality of earnings\n\nHow reliable and repeatable reported earnings are. A quality of earnings review is the analysis a buyer commissions to test them.\n\n### Seller's discretionary earnings (SDE)\n\nThe total financial benefit one full-time owner takes from a business: profit before tax plus the owner's pay, interest, depreciation and one-off or personal expenses. Used to price smaller, owner-operated businesses. See SDE vs EBITDA.\n\n## Value terms\n\n### Enterprise value\n\nThe value of the operating business regardless of how it is financed. Roughly, the price for the whole business before deducting debt and adding cash.\n\n### Equity value\n\nWhat the owners would actually receive: enterprise value, less debt, plus cash.\n\n### Fair market value\n\nThe price at which a business would change hands between a willing buyer and a willing seller, neither being forced to act and both having reasonable knowledge of the facts. It is the standard used for most tax valuations.\n\n### Formal valuation\n\nA written opinion of value prepared by a credentialed professional under professional standards, for a purpose where a third party will rely on it. See indicative estimate vs formal valuation.\n\n### Goodwill\n\nThe part of a business's value that is not tied to physical assets: reputation, customer relationships, systems and workforce.\n\n### Indicative estimate\n\nAn approximate value range for planning and tracking. It is not a formal valuation and should not be relied on for tax, legal, financing or transaction purposes.\n\n### Multiple\n\nThe sale price of a business divided by its earnings or revenue. A business that sells for $900,000 with $300,000 of earnings sold for a multiple of 3. See multiples by industry.\n\n## Risk terms\n\n### Customer concentration\n\nThe share of sales that comes from your largest customers. High concentration lowers value because losing one customer would remove a large share of profit.\n\n### Owner dependence\n\nHow much the business relies on the owner personally for sales, relationships, decisions and know-how. High owner dependence lowers value because the earnings may not survive a change of owner.\n\n### Recurring revenue\n\nRevenue that repeats under contracts, subscriptions or service plans without having to be won again each time. It raises value because it makes future earnings more predictable.\n\n## Other terms\n\n### Benchmark\n\nA comparison of one of your measures, such as margin or growth, against similar businesses.\n\n### Due diligence\n\nThe buyer's investigation of a business before a deal closes, covering finances, customers, contracts, legal and operations.\n\n### Working capital\n\nThe cash tied up in day-to-day trading: receivables plus inventory, less payables. Buyers expect a normal level of working capital to be left in the business at sale."},{"slug":"how-to-increase-business-value","url":"https://bizvaluedash.com/guides/how-to-increase-business-value","type":"guide","title":"How to increase the value of your business","description":"Six practical ways to raise what your business is worth, in the order that usually pays off fastest, with a realistic timeline for each.","text":"There are only two ways to raise the value of a business: increase the earnings a buyer would count, or make those earnings look safer so the multiple goes up. The best moves do both.\n\n> Quick version: clean up the books first, then work on earnings, then reduce the risks buyers discount for. Start two to three years before you might sell.\n\n## The math\n\nValue is roughly earnings times a multiple. A business with $300,000 of earnings at a multiple of 2.5 is worth about $750,000.\n\n- Raise earnings by $50,000 and it is worth about $875,000.\n- Raise the multiple to 3.0 instead and it is worth about $900,000.\n- Do both and it is worth about $1,050,000.\n\nSmall changes to both inputs compound, which is why tracking the drivers matters more than chasing revenue.\n\n## 1. Make the numbers believable\n\nTimeline: three to six months.\n\nNothing else counts if a buyer does not trust your accounts. Close the books every month, reconcile the bank, separate personal expenses and keep a file of support for every adjustment. Clean books also mean you see problems while they are small.\n\n## 2. Raise earnings, not just sales\n\nTimeline: six to twelve months.\n\n- Review prices. Many small businesses have not raised prices in line with their costs.\n- Cost your jobs. Find the work that loses money and stop taking it or reprice it.\n- Cut costs that do not help you win or keep customers.\n\nBuyers pay a multiple of earnings, so every dollar of sustainable profit you add is worth two to three dollars of value.\n\n## 3. Make revenue repeat\n\nTimeline: one to two years.\n\nRevenue that renews is worth more than revenue you have to win again. Depending on your industry, that could mean service agreements, maintenance plans, retainers or subscriptions. Even a modest base of contracted revenue changes how a buyer sees next year.\n\n## 4. Spread your customer base\n\nTimeline: one to three years.\n\nIf one customer is a large share of sales, do not shrink that customer. Grow the others. Put your largest customers on written agreements in the meantime so the revenue is less likely to walk.\n\n## 5. Make yourself less necessary\n\nTimeline: one to three years.\n\n- Hand over customer relationships one at a time.\n- Write down how quoting, scheduling and billing are done.\n- Give a manager real authority and let them use it.\n\nA simple test: take two weeks off without checking in. Whatever breaks is your to-do list.\n\n## 6. Tidy up working capital\n\nTimeline: three to six months.\n\nInvoice promptly, chase overdue accounts and clear out old inventory. Faster collections put cash in your pocket now and remove an argument over the price later.\n\n## Watch what the market is doing\n\nYour number also moves with things you do not control: what similar businesses are selling for, how many buyers are active in your industry and what it costs them to borrow. You cannot change these, but knowing them tells you whether a rise in your value came from your own work or from the market.\n\n## Measure it\n\nYou improve what you measure. Owners who see their value and its drivers every month can tell which changes worked. That is the idea behind the monthly value report: your number, what moved it and what to do next.\n\n## Common questions\n\n### How long before a sale should I start?\n\nTwo to three years is ideal. Buyers look at three years of results, so improvements need time to show up in the numbers.\n\n### What is the single fastest improvement?\n\nClean, timely books. It costs little, it takes months and not years, and it makes every other number more credible.\n\n### Is growing revenue the best way to add value?\n\nNot on its own. Revenue growth that brings thinner margins or more dependence on one customer can lower value. Growth in sustainable earnings is what counts."},{"slug":"indicative-estimate-vs-formal-valuation","url":"https://bizvaluedash.com/guides/indicative-estimate-vs-formal-valuation","type":"guide","title":"Indicative estimate vs formal valuation: which do you need?","description":"When a quick estimate of business value is enough, when you need a formal valuation from a credentialed appraiser, and what each one costs and involves.","text":"\"What is my business worth?\" has two kinds of answer. One is an indicative estimate you use to plan and track progress. The other is a formal valuation that someone else, such as the IRS, a court or a lender, will rely on. They are different products for different jobs.\n\n> Quick version: use an estimate for your own decisions. Get a formal valuation when a third party needs to rely on the number.\n\n## Side by side\n\n| | Indicative estimate | Formal valuation |\n| --- | --- | --- |\n| Purpose | Planning, tracking, deciding what to fix | Tax, legal, lending or a transaction |\n| Who relies on it | You | A third party |\n| Prepared by | You, an advisor or a tool | A credentialed valuation professional |\n| Output | A value range and its drivers | A written report with a conclusion of value |\n| Typical cost | Low | Often $2,000 to $10,000 for a straightforward small business |\n| How often | As often as you like | When an event requires it |\n\nThe cost range is from Eton Venture Services. Complex cases, such as litigation, cost more.\n\n## When an estimate is enough\n\n- Deciding whether a sale in the next few years is realistic\n- Retirement and personal financial planning\n- Checking whether last year's changes added value\n- Preparing for a conversation with a broker, banker or partner\n- Setting targets for what to fix before a sale\n\n## When you need a formal valuation\n\n- Gift and estate tax. Transfers of ownership to family or into trusts need a defensible value.\n- Buy-sell agreements and partner buyouts. Where the agreement calls for an appraisal, or the owners cannot agree.\n- Divorce and shareholder disputes. Courts expect an independent expert.\n- Employee ownership. ESOPs require an independent appraisal every year.\n- Equity compensation. Private companies granting stock options typically get a 409A valuation.\n- Lending. Lenders often require an independent business appraisal when financing an acquisition.\n- Financial reporting. Purchase price allocations and impairment testing.\n\nIf a professional advisor, a court or a tax authority will read the number, assume you need the formal version.\n\n## What a formal valuation involves\n\nA valuation professional reviews several years of financial statements, interviews management, analyzes the industry and applies recognized approaches: income, market and asset. The result is a written report prepared under professional standards. Common credentials include ABV, ASA and CVA.\n\nExpect it to take a few weeks and to need your time for document requests and questions.\n\n## How the two work together\n\nAn estimate does not replace a valuation, but it makes one easier and less likely to surprise you. Owners who have tracked their value and its drivers arrive with clean numbers, a realistic expectation and a record of what has changed.\n\nIt works the other way too. A formal valuation is a snapshot on one date. Between snapshots, an estimate tells you which way the number is moving.\n\n## Where BizValueDash fits\n\nBizValueDash is on the estimate side of this line. The monthly report gives an indicative value range, the KPIs and market data behind it, and next steps. It is not a formal valuation, appraisal or opinion of value, and should not be used for tax, legal, financing or transaction purposes.\n\n## Common questions\n\n### Can I use an online estimate for an SBA loan or a tax filing?\n\nNo. Those need a valuation prepared by a qualified professional under the relevant standards.\n\n### How long is a formal valuation good for?\n\nIt is an opinion as of a specific date. How long others will accept it depends on the purpose and on how much the business and the market have changed since.\n\n### Will an estimate and a formal valuation give the same number?\n\nNot exactly. A formal valuation digs deeper and may use different methods and assumptions. If the two are far apart, the reasons why are worth understanding."},{"slug":"privacy","url":"https://bizvaluedash.com/privacy","type":"page","title":"How we handle your data","description":"What BizValueDash collects, how your financial data is used to produce your monthly report, who processes it, and how to have it deleted.","text":"Your books are among the most sensitive things your business owns. This page sets out, in plain English, what we collect, what we do with it, and what we will never do.\n\n## The short version\n\n- We use your financial data for one purpose: producing your monthly value report.\n- We never sell it, share it for marketing, or publish it.\n- We read your books. We never change them.\n- Your data is never used to train AI models.\n- You can ask us to delete your data at any time.\n\n## What we collect\n\nIf you use this website. We count page views with a privacy-friendly analytics tool that does not use cookies and does not identify you. The free value check runs entirely in your browser, so the numbers you enter there never reach us.\n\nIf you send us an enquiry. We receive what you type into the form: your name, email, business name, and anything else you choose to tell us. We use it to reply to you.\n\nIf you become a client. We receive the financial information needed to build your report, either through a connection to your accounting software or from files you send us. This includes your profit and loss, balance sheet, and customer and supplier totals. We also keep your answers to a short questionnaire about things the books cannot show, such as how much the business depends on you.\n\n## How your financial data is used\n\nYour KPIs are calculated from your books using fixed formulas. An AI model then helps turn those figures into the written report. To do that it processes your financial data, including your business name.\n\nWe only use AI providers under business terms that prohibit them from training their models on your data.\n\nMarket data in your report, such as industry sale multiples, comes from published sources. Your figures are never added to any shared data set or benchmark.\n\n## Who can see your data\n\n- Us. The people producing and checking your report.\n- Service providers that host our systems, deliver email, and process data for the report. They act on our instructions and may not use your data for their own purposes.\n- Nobody else, unless you ask us to share it or the law requires it.\n\nYour report is sent only to the people you name.\n\n## Keeping it secure\n\nData is encrypted in transit. Access is limited to the people who need it to produce your report. Connections to accounting software use the software's own authorisation, so we never see or store your accounting password, and you can remove our access at any time from inside your accounting software.\n\n## How long we keep it\n\nWe keep your data while you are a client, so each month's report can be compared with the last. If you cancel, we delete your financial data within 30 days of your request, apart from anything we are required by law to keep.\n\n## Your choices\n\nEmail hello@bizvaluedash.com to see what we hold about you, correct it, or have it deleted.\n\n## Changes to this page\n\nIf we change how we handle data, we will update this page and tell current clients before the change takes effect.\n\n## Common questions\n\n### Does BizValueDash sell my data?\n\nNo. Your data is used only to produce your report.\n\n### Is my data used to train AI?\n\nNo. We only use AI providers under business terms that prohibit training on your data.\n\n### Can BizValueDash change anything in my books?\n\nNo. We read your books to build your report. We never make changes to them.\n\n### Can I have my data deleted?\n\nYes. Email hello@bizvaluedash.com and we will delete your financial data within 30 days."},{"slug":"sde-vs-ebitda","url":"https://bizvaluedash.com/guides/sde-vs-ebitda","type":"guide","title":"SDE vs EBITDA: which earnings number do buyers use?","description":"The difference between seller's discretionary earnings and EBITDA, when each one applies, and how to work out yours from your accounts.","text":"SDE and EBITDA are two ways of answering the same question: how much does this business really earn? The difference is how each one treats the owner.\n\n> Quick version: SDE includes the owner's pay, so it suits businesses where the buyer will run the business themselves. EBITDA deducts a market salary for the owner's role, so it suits businesses a buyer will own but not operate.\n\n## What each one means\n\nSeller's discretionary earnings (SDE) is the total financial benefit one full-time owner takes from the business. Start with profit before tax and add back interest, depreciation, amortization, the owner's salary and benefits, and expenses that are one-off or personal.\n\nEBITDA is earnings before interest, tax, depreciation and amortization. In a sale, buyers use adjusted EBITDA: they remove one-off items and replace the owner's actual pay with what it would cost to hire someone to do the owner's job.\n\n## From one to the other\n\nThe two numbers are linked by one line: a market-rate salary for the owner's role.\n\n| | Amount |\n| --- | --- |\n| Profit before tax | $180,000 |\n| Add: interest and depreciation | $30,000 |\n| Add: owner's salary and benefits | $90,000 |\n| Add: one-off and personal expenses | $10,000 |\n| SDE | $310,000 |\n| Less: market salary for a manager | ($110,000) |\n| Adjusted EBITDA | $200,000 |\n\nSame business, two very different earnings figures. That is why a multiple only means something when you know which earnings it is applied to. A business priced at 2.6 times SDE and one priced at 4 times EBITDA can be the same price.\n\n## Which one applies to you\n\n- SDE is the norm for owner-operated businesses, typically those earning under about $1 million a year for the owner. The usual buyer is an individual who will work in the business.\n- EBITDA is the norm for larger businesses with a management team. The usual buyers are companies and investors who will not work in the business day to day.\n\nThere is no hard line between the two. Businesses in the middle are often looked at both ways.\n\n## What counts as an add-back\n\nAdd-backs are where most disagreements with buyers happen. A buyer will accept an add-back only if it is real, documented and will not recur.\n\nUsually accepted:\n\n- Owner's salary, payroll taxes and benefits (for SDE)\n- Interest, depreciation and amortization\n- One-off costs such as a lawsuit, a move or storm damage\n- Personal expenses paid by the business, where you can show the receipts\n\nUsually challenged:\n\n- \"One-off\" costs that happen most years\n- Family members on the payroll who do real work that someone would need to be paid for\n- Cash sales that are not in the books\n- Cutting marketing or maintenance to flatter the latest year\n\n## Common mistakes\n\n- Adding back the owner's salary twice. If you take dividends instead of a salary, there may be no salary in the accounts to add back.\n- Mixing the measures. Applying an EBITDA multiple to SDE overstates value, often by a wide margin.\n- Ignoring a second owner. SDE assumes one full-time owner. If two owners work in the business, one salary is a real cost and stays in.\n- Forgetting equipment replacement. Depreciation is added back, but vans and machines still wear out. Buyers adjust for the spending needed to keep the business running.\n\n## Common questions\n\n### Is a higher add-back total always better?\n\nNo. A long list of aggressive add-backs makes buyers doubt the whole set of numbers. A short, well-documented list is worth more than a long, shaky one.\n\n### Which years do buyers look at?\n\nUsually the last three full years and the most recent twelve months. They weight recent periods more heavily and look hard at the trend.\n\n### Can I work out SDE from my tax return?\n\nRoughly, yes. Start with taxable income and add back the same items. Management accounts are usually more reliable because tax returns are prepared to minimize tax, not to show earning power."},{"slug":"what-is-my-business-worth","url":"https://bizvaluedash.com/guides/what-is-my-business-worth","type":"guide","title":"What is my business worth?","description":"A plain-English way to estimate what a small business is worth, the numbers buyers use, and why two similar businesses can sell for very different prices.","text":"Most small businesses are priced the same way: a measure of yearly earnings, multiplied by a number that reflects how risky and how transferable those earnings are. Get those two inputs roughly right and you have a sensible starting estimate.\n\n> Quick version: value is roughly earnings times a multiple. For small owner-operated businesses, publicly reported sales average about 2.6 times the owner's yearly earnings. Your own multiple depends on how risky your earnings look to a buyer.\n\n## Step 1: find the right earnings number\n\nBuyers do not use the profit on your tax return. They adjust it to show what the business really earns for an owner.\n\n- Seller's discretionary earnings (SDE) is used for smaller, owner-operated businesses. It is profit before tax, plus interest, depreciation, the owner's pay and benefits, and one-off or personal expenses run through the business.\n- EBITDA is used for larger businesses that run with a management team. It is profit before interest, tax, depreciation and amortization, after paying a market salary for the owner's role.\n\nIf you work in the business every day and it earns less than about $1 million a year for you, SDE is usually the right measure. See SDE vs EBITDA for a worked example.\n\n## Step 2: apply a multiple\n\nThe multiple is what the market pays for each dollar of earnings. BizBuySell, which reports on thousands of small business sales, shows an average sale price of 2.58 times SDE across all sectors for sales from Q3 2021 to Q2 2026 (source). The average differs by industry:\n\n| Industry | Average multiple of SDE |\n| --- | --- |\n| Restaurants | 2.18 |\n| Cleaning businesses | 2.25 |\n| Landscaping | 2.49 |\n| Plumbing | 2.61 |\n| Dental practices | 2.75 |\n| HVAC | 2.83 |\n| Auto repair | 2.85 |\n| Websites and ecommerce | 3.37 |\n\nThe full table is in business valuation multiples by industry.\n\n## A worked example\n\nA plumbing business shows $180,000 of profit before tax. The owner takes a $90,000 salary, the accounts include $30,000 of depreciation and interest, and $10,000 of personal expenses went through the books.\n\n- SDE = $180,000 + $90,000 + $30,000 + $10,000 = $310,000\n- At the industry average of 2.61, that points to roughly $810,000\n- A realistic range, allowing for how the business compares with its peers, might be $650,000 to $970,000\n\nThat range is wide on purpose. Where a business lands inside it depends on the drivers below.\n\n## Why your number will differ from the average\n\nTwo businesses with the same earnings can sell for very different prices. Buyers pay more when earnings look safe and easy to take over, and less when they look fragile.\n\n- Customer concentration. If one customer is 30% of sales, a buyer sees a 30% risk.\n- Owner dependence. If the business cannot run for a month without you, the buyer is buying a job.\n- Earnings trend. Three years of steady growth is worth more than one good year.\n- Quality of the books. Clean, timely accounts make earnings believable.\n- Recurring revenue. Contracts and repeat customers make next year predictable.\n- Market conditions. Interest rates and buyer demand in your industry move multiples up and down.\n\nMore on these in what lowers the value of a business and how to increase the value of your business.\n\n## What this estimate is not\n\nA quick calculation like this is an indicative estimate. It is useful for planning and for tracking progress. It is not a formal valuation, and it will not stand up for tax, legal, lending or transaction purposes. See indicative estimate vs formal valuation for when you need the real thing.\n\n## Common questions\n\n### How often should I check what my business is worth?\n\nValue changes whenever earnings, risk or market conditions change, which is most months. Owners who track it regularly can see which decisions added value and fix problems years before a sale, when there is still time.\n\n### Is revenue or profit more important for value?\n\nProfit. Most small businesses are priced on earnings. Revenue multiples are a cross-check, and they mislead when margins are unusually high or low.\n\n### Does the value include cash, debt and property?\n\nUsually not. Small business prices normally cover the operating business: equipment, inventory, goodwill and a normal level of working capital. Cash, debt and real estate are generally dealt with separately."},{"slug":"what-lowers-business-value","url":"https://bizvaluedash.com/guides/what-lowers-business-value","type":"guide","title":"What lowers the value of a business?","description":"The eight issues that most often cut what a buyer will pay for a small business, how to spot each one in your own numbers, and what to do about it.","text":"Buyers pay for earnings they believe will continue after you leave. Anything that makes those earnings look fragile lowers the multiple, and sometimes ends the deal. These are the issues that come up most often.\n\n> Quick version: the biggest value killers are relying on a few customers, relying on the owner, and books a buyer cannot trust. All three can be fixed, but each takes a year or more.\n\n## 1. Customer concentration\n\nIf a handful of customers make up most of your sales, losing one could wipe out a large share of profit.\n\n- Check: what share of sales comes from your top one and top five customers?\n- Warning sign: one customer above about 15% to 20% of sales, or the top five above half.\n- Fix: win more mid-sized customers and put your largest ones on written contracts.\n\n## 2. Owner dependence\n\nIf you hold the key relationships, do the quoting and make every decision, the buyer is not buying a business. They are buying your job.\n\n- Check: could the business run for a month without you?\n- Warning sign: customers call your cell phone and nothing is written down.\n- Fix: hand relationships to staff, document how work gets done and build a second layer of management.\n\n## 3. Books a buyer cannot trust\n\nLate, inconsistent or cash-heavy accounts make every number suspect. Buyers respond by discounting the price or walking away.\n\n- Check: are your accounts closed and reconciled within a few weeks of each month end?\n- Warning sign: personal expenses mixed in, large unexplained adjustments, tax returns that do not match the accounts.\n- Fix: monthly closes, separate personal spending and keep support for every add-back.\n\n## 4. Flat or falling earnings\n\nBuyers weight the recent trend heavily. One strong year after two weak ones is treated with caution.\n\n- Check: earnings for each of the last three years and the latest twelve months.\n- Warning sign: earnings falling while revenue holds, which means margins are shrinking.\n- Fix: find the cause early. Price increases, unprofitable jobs and rising labor costs are the usual suspects.\n\n## 5. Margins below your peers\n\nIf similar businesses keep more of each dollar of sales, a buyer will ask why you do not.\n\n- Check: your gross and operating margins against industry benchmarks.\n- Warning sign: margins several points under the peer average with no clear reason.\n- Fix: review pricing, job costing and the mix of work you take on.\n\n## 6. Working capital problems\n\nSlow-paying customers and bloated inventory tie up cash. A buyer has to fund that, so they pay less.\n\n- Check: how many days it takes customers to pay, and how long inventory sits.\n- Warning sign: receivables stretching past 60 days, or a large balance owed by one customer.\n- Fix: tighten invoicing and collections well before a sale.\n\n## 7. Key people and no contracts\n\nIf one or two employees leaving would damage the business, or customers and suppliers can walk at any time, earnings are at risk.\n\n- Check: who could not be replaced within three months?\n- Warning sign: no employment agreements, no supplier contracts, a lease about to expire.\n- Fix: written agreements, cross-training and retention incentives for key staff.\n\n## 8. One-off revenue\n\nRevenue you have to win again from scratch every year is worth less than revenue that repeats.\n\n- Check: what share of this year's sales came from repeat customers or contracts?\n- Warning sign: a few large projects make the year.\n- Fix: add service plans, maintenance contracts or subscriptions where your industry allows.\n\n## The market also moves your number\n\nSome of what lowers value is outside your control. Higher interest rates reduce what buyers can borrow. Fewer active buyers in your industry means less competition for your business. You cannot fix these, but you can know about them and time decisions around them.\n\n## Common questions\n\n### Which issue matters most?\n\nFor most small businesses, owner dependence and customer concentration. They are the first two things a serious buyer asks about.\n\n### How long do these take to fix?\n\nClean books can be in place within a few months. Reducing owner dependence or customer concentration usually takes one to three years, which is why it pays to start well before you plan to sell.\n\n### How do I know which ones apply to me?\n\nMeasure them. A monthly value report tracks each of these drivers and shows which ones are moving your number."},{"slug":"sample-report","url":"https://bizvaluedash.com/sample-report","type":"page","title":"Sample monthly value report","description":"See what a BizValueDash monthly report looks like: your indicative value range, what moved it, your KPIs, market data and next moves.","text":"Sample monthly value report This is what lands in your inbox each month in \"ready to present\" PDF format. BizValueDash Your monthly value report Sample Co. · HVAC services · September Illustrative example. Not a real business. Indicative value range ▲ 4% this month $2.1M – $2.5M +6% −2% 0% +4% Last month Your margins Industry multiples Customer mix This month Value over the last 12 months Midpoint and range $2.2M $2.6M Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Your value rose about 4% this month. Better margins added about 6%, after the price increase in July and fewer callbacks. Softer sale multiples for HVAC businesses took back about 2%. The rise came from what you did, not from the market. Your business KPIs EBITDA margin 18.4% ▲ 1.2 pts Helping You Peers 15.1% Revenue growth 9.0% ▲ 0.6 pts Helping You Peers 6.5% Recurring revenue 32% of sales No change Holding back You Peers 40% Top 5 customers 41% of sales No change Holding back You Peers 30% Working capital 38 days ▼ 3 days Helping You Peers 42 days Owner dependence Medium No change Neutral Low High Market data What the market is doing in your industry, last 6 months Industry multiple 4.2x ▼ 0.1x Buyers paying slightly less Peer margin 15.1% You: above Supports a higher multiple Deals in sector 27 / yr ▲ 4 More buyers are active Lending rate 7.5% No change Borrowing costs steady Your next moves Estimated effect on value 1 Move your 20 largest service customers onto annual maintenance plans Recurring revenue is 32% of sales against 40% for peers. +3% to +5% 2 Put your two largest commercial customers on written contracts Your top five customers are 41% of sales against 30% for peers. +2% to +3% How your range is calculated Same formulas every month, from your books and published market data EBITDA, last 12 months $548K × Industry sale multiple 4.2x = Midpoint, with the range shown 9% either side $2.3M Indicative estimate for tracking and planning. Not a formal valuation, appraisal or opinion of value. How to read it The range is an indicative estimate built from your own books and current market data. The split between your KPIs and market data shows what you earned and what the market handed you. The bars under each KPI show where you stand against similar businesses. The dark marker is the peer average. The next moves are the one or two changes likely to add the most value from here. The report arrives as a PDF, so it is ready to share with your board, lenders or shareholders. BizValueDash reports are indicative estimates for tracking and planning. They are not formal valuations, appraisals or opinions of value."},{"slug":"get-started","url":"https://bizvaluedash.com/get-started","type":"page","title":"Get your first value report","description":"Start your BizValueDash monthly value report. Tell us about your business and we will be in touch within one business day.","text":"Get your first value report Tell us a little about your business and we will be in touch within one business day to set up your first monthly report. Your details No obligation Your name Email Business name Industry Yearly revenue Prefer not to say Under $1M $1M to $5M $5M to $20M Over $20M Accounting software Choose one QuickBooks Online QuickBooks Desktop Xero Other Anything we should know? (optional) Send Prefer email? Write to hello@bizvaluedash.com . BizValueDash reports are indicative estimates for tracking and planning. They are not formal valuations, appraisals or opinions of value."},{"slug":"value-check","url":"https://bizvaluedash.com/value-check","type":"page","title":"Free business value check","description":"Get an indicative value range for your business in under a minute, based on publicly reported sale multiples for your industry.","text":"Free business value check Get an indicative value range for your business in under a minute, based on publicly reported sale multiples for your industry. Your details Nothing you enter leaves your browser. Yearly earnings ($) Profit before tax, plus your own pay, interest and depreciation. How to work this out Industry Pick the closest match, or leave on all sectors. Show my range Your indicative value range Not a formal valuation Get your first value report How this works The check multiplies your yearly earnings by the average sale multiple for your industry, then shows a range around that midpoint. The multiples are averages from actual small business sales. See business valuation multiples by industry for the full table and sources. It cannot see what makes your business better or worse than average: how concentrated your customers are, how much the business depends on you, your margins against your peers or what the market is doing this month. Those are what the monthly value report tracks. This is an indicative estimate for planning. It is not a formal valuation, appraisal or opinion of value, and should not be relied on for tax, legal, financing or transaction purposes."}],"multiples":{"mainStreet":{"source":"BizBuySell, Business Valuation Multiples by Industry","url":"https://www.bizbuysell.com/learning-center/industry-valuation-multiples/","period":"sales reported on BizBuySell, Q3 2021 to Q2 2026","basis":"average sale price divided by seller's discretionary earnings (SDE)","overall":{"earnings":2.58,"revenue":0.67,"medianSalePrice":340000},"sectors":[{"key":"automotive-boat","name":"Automotive and boat","revenue":0.71,"earnings":3.1},{"key":"beauty-personal-care","name":"Beauty and personal care","revenue":0.54,"earnings":2.12},{"key":"building-construction","name":"Building and construction","revenue":0.59,"earnings":2.65},{"key":"financial-services","name":"Financial services","revenue":1.21,"earnings":2.46},{"key":"food-restaurants","name":"Food and restaurants","revenue":0.42,"earnings":2.27},{"key":"health-care-fitness","name":"Health care and fitness","revenue":0.75,"earnings":2.72},{"key":"manufacturing","name":"Manufacturing","revenue":0.73,"earnings":3.04},{"key":"online-technology","name":"Online and technology","revenue":1.09,"earnings":3.28},{"key":"retail","name":"Retail","revenue":0.55,"earnings":2.63},{"key":"service","name":"Service businesses","revenue":0.83,"earnings":2.61}],"industries":[{"key":"accounting-tax","name":"Accounting and tax practices","revenue":1.08,"earnings":2.27},{"key":"auto-repair","name":"Auto repair and service","revenue":0.65,"earnings":2.85},{"key":"cleaning","name":"Cleaning businesses","revenue":0.72,"earnings":2.25},{"key":"dental","name":"Dental practices","revenue":0.76,"earnings":2.75},{"key":"hvac","name":"HVAC businesses","revenue":0.6,"earnings":2.83},{"key":"insurance-agency","name":"Insurance agencies","revenue":1.52,"earnings":2.87},{"key":"landscaping","name":"Landscaping and yard services","revenue":0.72,"earnings":2.49},{"key":"medical-practice","name":"Medical practices","revenue":0.73,"earnings":2.39},{"key":"plumbing","name":"Plumbing businesses","revenue":0.69,"earnings":2.61},{"key":"restaurant","name":"Restaurants","revenue":0.39,"earnings":2.18},{"key":"ecommerce","name":"Websites and ecommerce","revenue":1.06,"earnings":3.37}]},"lowerMiddleMarket":{"source":"GF Data, as reported by CapitalPad","url":"https://capitalpad.com/lower-middle-market-private-equity/","period":"first nine months of 2025","basis":"average enterprise value divided by EBITDA, private-equity-sponsored deals of $10M to $25M enterprise value","multiple":6.4},"method":{"band":0.2,"largeEarnings":1000000}}}