You know your business inside-out. But when someone asks “what’s it worth?”, most owners struggle to give a confident answer. Here are four ways to find out, from quick estimates to formal valuations.
Option 1: Online Valuation Calculator (5 Minutes)
The fastest way to get a ballpark figure. Enter your revenue, EBITDA, and industry, and get an indicative range based on standard multiples.
When to use: Initial curiosity, rough planning, sanity-checking an offer.
Limitations: Doesn’t account for growth rate, customer concentration, lease quality, owner dependency, or other factors that can move the value 50%+ in either direction.
Option 2: Industry Rules of Thumb (30 Minutes)
Research what businesses like yours typically sell for. Industry associations, business broker databases, and trade publications often publish benchmark transaction data.
When to use: Comparing your business to recent sales in your industry.
Limitations: Rules of thumb are averages — your business may be significantly above or below average.
Option 3: DIY Financial Analysis (Half Day)
If you’re comfortable with financial analysis:
- Calculate your normalised EBITDA (adjust your net profit for owner salary, personal expenses, one-off items, depreciation, and interest)
- Research EBITDA multiples for your industry and size bracket
- Apply the range to get a low-mid-high estimate
- Add net assets (surplus cash, inventory at cost, equipment)
- Subtract debt
This gives you a credible estimate that most advisors would roughly agree with.
When to use: Serious planning, evaluating an unsolicited offer, discussing with your accountant.
Limitations: You may miss normalisation items or apply the wrong multiple. Emotional attachment can bias the result upward.
Option 4: Professional Valuation (1-2 Weeks)
Engage a corporate advisor or business valuer to conduct a formal, independent valuation. This typically involves:
- Detailed review of 3 years of financial statements
- Normalisation analysis
- Industry and comparable transaction research
- Multiple valuation methodologies (EBITDA multiple, DCF, asset-based)
- Assessment of qualitative value drivers and risks
- A written valuation report
When to use: Preparing to sell, partnership disputes, estate planning, shareholder buyouts, or any situation where an independent, defensible valuation is needed.
Cost: $3,000-$20,000+ depending on business complexity.
Which Option Is Right for You?
| Situation | Best Option |
|---|---|
| ”Just curious” | Online calculator |
| Evaluating an unsolicited approach | DIY + consult your accountant |
| Planning to sell in 1-2 years | Professional valuation |
| Partnership dispute or estate planning | Formal independent valuation |
| Someone’s made an offer | Engage a corporate advisor immediately |
The Most Important Thing
Whatever method you use, remember that a valuation is an estimate, not a price. The actual sale price depends on market conditions, buyer competition, negotiation, and deal structure.
The best way to maximise value is to prepare well, create competitive tension, and engage professional representation.
Start with our calculator, or contact us when you’re ready for a professional assessment.