Key Performance Indicators
Please add your basic business information. We will use this data to calculate the business value and probability of selling.
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Enter your gross receipts from your business activities last year rounded to the nearest dollar.
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Enter amount for one working owner that was expensed.
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Enter total interest expense (exclude interest from floor plans).
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Enter the depreciation expense from last year.
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Enter the Amortization expense from last year, if any.
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Enter any other Income or Expense from last year that are non-recurring. Examples include moving expense, unusual legal or accounting fees. You may also enter negative numbers if you need to adjust for rent or other expense that a buyer will have that you didn't.
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Enter perks such as auto, travel, retirement benefits, etc., that are soley for the owner's benefit.
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The bottom line, what was the profit last year. Ok to enter negative amounts.
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This is the financial benefit of ownership!
"(Seller’s Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full time owner-operator would derive from a business on an annual basis. It is also referred to as Adjusted Cash Flow, Total Owner’s Benefit, Seller’s Discretionary Cash Flow, or Recast Earnings.)"
Choose the range from 2 - 3.5. For example Middle Value = 2.5. Use a Lower Value multiple for businesses with low SDE (thus high risk) and a higher multiple for those with higher SDE (has lower risks). Said another way; if SDE is below $100,000, use a Lower Value multiple or if above $300,000, use a Higher Value multiple.
Note, this tool is not recommended for real estate intensive businesses such as hotels, car washes, gas stations, RV parks, etc.
Would you like us to perform a more detailed analysis and receive a detailed Opinion of Value Report?
We offer it as a free service for businesses over $1MM in Revenue!
Please Schedule a Call with us to discuss.
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Sellers Discretionary Earnings
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This is the financial benefit of ownership!
Annual Remaining Profit
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On average, what does the business spend annually on new equipment? By way of example, a professional firm could have lower capital expenditures for desks and computers vs an Excavation Company that buys expensive tractors. If you're unsure, a good rule of thumb is the current value of your equipment divided by 10.
Prime + 2.5
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Your Estimated Business Value
Are your Numbers Realistic?
Let's Run a Sanity Check...
Would you like to recieve a detailed breakdown of your business value estimate?
Add your email and we will send you a pdf with a detailed breakdown of your results.
Would you like to recieve a detailed breakdown of your business value estimate?
Add your email and we will send you a pdf with a detailed breakdown of your results.
Summary
| Description | Information | Quantity | Price |
|---|---|---|---|
| Discount : | |||
| Total : | |||