Business value guides

Plain-English guides for owners on what a business is worth, what moves the number, and how to raise it.

• What is my business worth?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.
• SDE vs EBITDA: which earnings number do buyers use?The difference between seller's discretionary earnings and EBITDA, when each one applies, and how to work out yours from your accounts.
• Business valuation multiples by industryAverage earnings and revenue multiples for small business sales by sector and industry, what they mean, and how to use them without fooling yourself.
• What lowers the value of a business?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.
• How to increase the value of your businessSix practical ways to raise what your business is worth, in the order that usually pays off fastest, with a realistic timeline for each.
• Indicative estimate vs formal valuation: which do you need?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.

Looking for a definition? See the glossary.