Business Valuator (Advanced)

Estimate a reasonable business value using industry multiples, adjusted earnings (SDE), and balance sheet adjustments. This tool is designed for early-stage planning and negotiation preparation — not a formal appraisal.

What this calculator does

This business valuator estimates two common deal outcomes:

• Asset Sale Value — based on adjusted earnings, asset value step-ups, and selected liabilities assumed in an asset purchase.
• Share Sale Value — based on equity value after liabilities transferred and an optional share-sale discount.

The calculator also shows:

• Adjusted Earnings (Seller’s Discretionary Earnings – SDE)
• Estimated goodwill based on your selected industry multiple
• Asset value adjustment (market value vs net book value)
• Pre-tax profit margin

How to use this calculator

1. Select your primary industry to apply an appropriate earnings multiple.
2. Enter your 3-year average net income before tax.
3. Add common SDE adjustments such as excess owner salary, depreciation, and interest.
4. Enter key balance sheet figures, including retained earnings and asset values.
5. Use the Deal Structure Adjustments section to reflect asset sales vs share sales and negotiation discounts.

Results update automatically as you enter data. You can also click Recalculate at any time.

Tips for accurate inputs

• Net income before tax: use a realistic multi-year average, not a one-time high or low year.
• Excess owner salary or costs: add back amounts above a market wage and any personal expenses run through the business.
• Asset values: appraisals are ideal, but reasonable estimates are acceptable for planning purposes.

How to interpret the results

Use the output as a valuation range and discussion starting point, not a final number.

• Low adjusted earnings may limit goodwill even with strong sales.
• Significant asset step-ups can materially increase value in asset deals.
• Share-sale discounts often reflect risk, financing complexity, and marketability.

Important note

This calculator provides a planning estimate only and does not replace a formal valuation, appraisal, or professional advice. For financing, shareholder transactions, tax planning, or legal matters, consult a qualified professional.