How Much Is My Business Worth?
Get an indicative estimate of your business’s potential market value and learn what may be increasing or reducing its value.
Understanding What Your Business Is Worth
For many owners, their business is their largest financial asset. However, understanding its value is not always straightforward.
A buyer will consider more than revenue and profit. They will also assess the sustainability of earnings, reliance on the owner, customer concentration, management capability, systems, growth prospects and the overall level of risk.
The calculator below provides an initial indicative value range based on your earnings and an estimated market multiple. It is intended as a starting point, rather than a formal business valuation.
How Is a Business Typically Valued?
1. Normalised Earnings
The starting point is generally the sustainable profit or EBITDA the business can generate after adjusting for owner-related, unusual and non-recurring items.
2. Valuation Multiple
A market multiple is applied to the normalised earnings. The appropriate multiple depends on the size, industry, risk profile, growth potential and transferability of the business.
3. Other Adjustments
Surplus cash, debt, working capital, property and other non-operating assets may need to be considered separately when determining the final equity value.
Estimate Your Business Value
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Business Value Calculator
Enter your business details below to receive an indicative valuation range.
Indicative business value
What does this estimate mean?
This range is based on your stated earnings and a broad indicative market multiple for the selected industry. The appropriate multiple for an individual business may be higher or lower depending on its size, growth, customer concentration, management capability, owner dependence and overall risk profile.
This calculator provides a general indicative estimate only. It is not a formal valuation, appraisal or offer to purchase a business. A professional assessment should consider the business’s financial performance, assets, liabilities, working capital requirements, industry conditions and specific risk factors.
When it helps to talk to a registered advisor
Most business owners do not wake up one morning with a firm decision to sell. The question usually builds over time.
It may be worth having a confidential conversation if:
A potential buyer has approached you and you are unsure whether the offer is reasonable
You are thinking about selling or stepping back within the next few years
You are considering bringing in a partner or passing the business to the next generation
You want to know what may be holding back the value of the business
You would like time to improve the business before eventually taking it to market
You are facing a major change involving shareholders, family members or business partners
A calculator can provide a useful indication, but it cannot see the full picture. It does not know how dependent the business is on you, how secure your customers are, whether earnings are sustainable or what a genuine buyer may value most.
Even if you are not ready to sell, getting an informed perspective now can give you greater clarity, more time and more options for the future.