Free Small Business Valuation Calculator. A Quick and Simple way to Value your Business online. – BizEx
Ever wonder what your business is worth? How much to sell your business for?
No need to spend time or money on a business valuation firm. Just enter in the information on our valuation spreadsheet and our software will calculate the value of your small business.
The formula we use is based on the Multiple of Earnings method which is most commonly used in valuing small businesses. The multiple is similar to using a discounted cash flow or capitalization rate used by top business valuation appraisers and top analysts. We’ve just simplified it for small business owners.
For a more personalized and in depth business valuation, we provide a free business evaluation and consultation for local business owners who are thinking about selling their business.
See business valuation tool instructions for an explanation of the factors involved in the calculation.
Learn How to Sell your Business,
How to Buy a Business,
How to Value a Business,
How to Choose a Business Broker,
Exit Strategy,
The Business Seller’s Guide.
Step 1: Determine the Cash Flow of the business
Discretionary Earnings are the Net Earnings of the business, before Interest, Taxes, Depreciation and Amortization, plus Manager’s Salary and other non-recurring expenses. Only adjust for expenses listed on financial statements used for your valuation. For the current year, please estimate earnings for the full twelve months to ensure a proper valuation.
Year
2023
2022
2021
Sales
$
$
$
Costs of Goods Sold
$
$
$
Operating Expenses
$
$
$
ADD BACKS
Officer Salaries
$
$
$
Depreciation
$
$
$
Interest
$
$
$
Other Expenses
$
$
$
Step 2: Determine the Multiple of Earnings to Use
Industry:
Manager Salary:
Earnings Trend:
Declining Revenues – 20% year over year, no turnaround yet
Declining Revenues -20% year over year, turnaround started
Steady Revenue, sustainable
Increasing Revenues +20%year over year, sustainable
Increasing Revenues +20%year over year, non-sustainable
Risk Factors:
No employees, non internet
Industry in Decline
Poor books and records
<3 years in business
<1 year in business
Upside/Low Risk Factors:
SBA Financable (TRs show profit)
Established Franchise
High Growth Industry
10+ Years in Business
Sustainable Competitive Advantage
Purpose Of Valuation (Informational only)
Purpose:
Business Purchase
Business Sale
Exit Planning
Insurance
Buy-Sell Agreements
Divorce
Shareholder Disputes
Litigation
Employee Stock Ownership Plans (ESOPs)
Charitable Contributions
Patent Infringement
Capital Infusion
Eminent Domain Proceedings
Gift Tax
Estate Planning & Estate Tax
Other (Please state)