Ben, what is my business worth? I get this question 5 times a day. Here are some guidelines.
SDE=Sellers Discretionary Earnings. How much do you make, plus addbacks like milage, meals, entertainment, etc. Don't addback expenses like rent or utilities, as new owner would have to pay that as well.
Salons- 1.7 times SDE plus equipment and inventory.
Service Business- 1.5 times cash flow.
Liquor stores- 33% of Annual sales plus inventory. Another methed is 2 times SDE plus inventory.
Publishing Company- 70% of Annual sales. Another method is 4-6 times EBTID.
Do you have a question about the value of your business? Call me for a free business valuation. All conversations are completely confidential.
CASH FLOW IS KING!
(720) 384-5029 Cell
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