Acquisitions
Business Acquisition Valuation Calculator
A defensible price range for a small business, built from what it actually earns its owner.
Inputs
- Seller discretionary earnings
- Verified add-backs
- Industry multiple
- Inventory at cost
How to use this calculator
- Enter seller discretionary earnings (SDE) and the industry multiple range.
- Add legitimate add-backs and any inventory included in the sale.
- The valuation range is a starting point. Verify the earnings and the comps before making an offer.
What each term means
- SDE (seller discretionary earnings)
- Profit plus the owner's salary and perks: a small business's real earning power.
- Multiple
- The number you pay per $1 of earnings (e.g. 3× SDE).
- Add-backs
- One-time or owner-specific expenses added back to show true earnings.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.