Valuation Tool

SME business valuation calculator

Estimate what a business is worth from its Seller's Discretionary Earnings (SDE), the sector multiple, and the quality factors that position it inside the range — then see your likely broker commission. A comp-style estimate, not a formal opinion of value.

SDE add-back worksheet — recast the P&L first

Reported net profit + Owner salary / draw & payroll taxes + Discretionary (personal, vehicle, travel) + Family on payroll (non-working) + One-time / non-recurring + Non-cash (depreciation, amortization) + Interest expense ± Rent normalization (to market — can be negative)

Normalized SDE$0

SDE = one working owner's total benefit — the number buyers and SBA lenders underwrite. Every add-back must be provable from the ledger: download the full worksheet (.docx) · detail in the protocol (Days 8 & 11).

Annual revenue (USD) SDE / owner earnings (USD) Net profit + owner salary + add-backs Industry benchmark ranges

Quality factors — position in the range +Recurring / contracted revenue ≥ 40%+Owner < 20 hrs/week or manager in place+Clean books — verifiable against tax returns–Top customer > 20% of revenue–Lease < 3 years left, no option

Inventory at cost (optional — added on top, Main Street convention) Broker commission rate

10%

Estimated business value derived — formula shown

$0 – $0

Positioned value $0 (mid-range)

Multiple used

2.5×

SDE margin

25%

Revenue multiple

0.0×

Your commission

Formula: SDE × positioned multiple (+ inventory). Commission = rate × total. Multiples are industry conventions — confirm with real comps (DealStats / BizComps / sold listings) before quoting. Turn this into the deliverable: Opinion of Value (.docx) · fee models: Fee Schedule (.docx) · method in the protocol (Days 7–11).