Owner earnings
Buyers start with the earnings the business can support. Depending on its size and how it operates, that may be framed as SDE or EBITDA. See how private equity values a business.
A practical starting range
What shapes the range
Buyers start with the earnings the business can support. Depending on its size and how it operates, that may be framed as SDE or EBITDA. See how private equity values a business.
A multiple turns adjusted earnings into an indicated value. The relevant range depends on the business, the market, and how a buyer defines the earnings base. Review our valuation multiples research.
A buyer also looks at whether the company can keep performing without depending on the owner for every relationship and decision. Our methodology explains how the full Exit Score evaluates those value drivers.