How Much Is Your Business Worth?

SDE (Seller's Discretionary Earnings) starts with net profit and adds back owner compensation, non-cash expenses like depreciation, interest, and income taxes — plus any personal expenses run through the business. It represents the total cash benefit a single working owner receives from the business. Net profit, by contrast, reflects accounting profit after all recorded expenses. For small businesses, SDE is almost always higher than net profit, which is why valuations look larger than profit-based multiples would suggest.

This calculator uses the same fundamental method — SDE × industry multiple — that brokers use for initial estimates. However, a professional valuation accounts for dozens of additional factors: customer concentration, growth trajectory, lease terms, key-person risk, competitive positioning, and comparable sales in your specific market. This tool is a starting point for your thinking, not a replacement for a formal broker opinion of value or certified appraisal.

A business with negative or minimal SDE is typically valued on an asset basis — the value of equipment, inventory, lease value, and other tangible assets, minus liabilities. The SDE multiple method assumes the buyer is acquiring a cash-flowing business. If you're not generating positive owner earnings, buyers will price based on what the assets are worth, not the business as a going concern. This calculator focuses on the SDE method and is most accurate for profitable businesses.

Business age is a proxy for risk. Buyers and lenders (especially SBA lenders) view operating history as evidence that the business model works, that the customer base is stable, and that the business can survive ownership transitions. A 2-year-old business with strong financials is valued more conservatively than an identical 10-year-old business because the historical track record is shorter. This calculator uses age to position your estimate within the industry's multiple range: younger businesses receive lower-end multiples, established businesses receive higher-end multiples.

Listing on Venture Atlas puts your opportunity in front of pre-qualified buyers who have submitted their budget range, desired categories, geographic preferences, and acquisition timeline. Every buyer lead you receive includes these structured data points — so you know immediately whether a buyer's budget matches your asking price before engaging. There's no commission. Listing is straightforward and you control what information is shown publicly versus gated behind an inquiry.