Estimate your business value using current EBITDA multiples from real lower middle market transactions. Adjust for your industry, growth profile, and business quality to get a realistic range.
This tool uses current EBITDA multiples from real lower middle market transactions (businesses with $1M–$50M EBITDA) to estimate your business value.
The base multiple is derived from your industry. We then apply adjustments based on growth rate, customer concentration, recurring revenue, and owner dependency — the four factors that most consistently move multiples in the lower middle market.
The result is a range: conservative (what a cautious buyer would pay), expected (what a motivated buyer would pay), and optimistic (what a strategic buyer might pay in a competitive process).
This calculator provides a directional estimate based on market multiples from comparable transactions. It's accurate enough to understand your valuation range and whether it's worth pursuing a sale process. For a precise valuation with a formal opinion of value, you need a qualified M&A advisor or business appraiser.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Start with your net income, then add back interest expense, income tax expense, depreciation, and amortization. For a business sale, you'll also want to calculate 'adjusted EBITDA' by adding back owner compensation above market rate, personal expenses run through the business, and one-time non-recurring costs.
Multiples reflect the risk and growth profile of each industry. SaaS businesses trade at 8-20x EBITDA because they have predictable recurring revenue, high margins, and strong growth potential. Manufacturing businesses trade at 4-7x because they have capital requirements, cyclicality, and lower margins. The multiple is essentially the market's assessment of how predictable and scalable the earnings are.
EBITDA multiples are used for profitable businesses and reflect the earnings power. Revenue multiples are used for high-growth businesses that may not be profitable yet, or as a sanity check on EBITDA multiples. For most lower middle market businesses, EBITDA is the primary valuation metric.
The highest-impact levers are: (1) reduce owner dependency by building a management team, (2) increase recurring revenue as a percentage of total revenue, (3) diversify your customer base so no single customer exceeds 15-20% of revenue, (4) clean up your financials and document your processes, and (5) grow EBITDA — even a 12-18 month preparation period can meaningfully increase your multiple.
Our advisory team provides confidential valuation assessments based on real transaction data — not algorithmic estimates. We'll tell you what qualified buyers would actually pay for your business today.
No broker. No public listing. No obligation.