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What is my business worth?

Most small businesses sell for about 2 to 3 times their seller's discretionary earnings (SDE), the profit one owner takes out of the business. Among service businesses sold from 2021 to 2025, the middle half went for 1.75x to 3.13x SDE. ^[1] Your industry, your size and how much the business depends on you decide where you land.

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How does the calculator work?

The short answer: earnings times a multiple from your industry, then a few adjustments.

1. Work out SDE. Pre-tax profit, plus one owner's pay and perks, interest, depreciation and amortization, and documented one-time or personal costs. ^{[2, 3, 4, 5]} The test for every add-back: would a new owner have this cost? Only one owner's pay goes back in; a second working owner is counted at a market wage.
2. Pick the industry's range. We use BizBuySell's sales from 2021 to 2025: the lower quartile, median and upper quartile price-to-SDE for your industry. The middle half of sales fall between the two quartiles. If your type of business has no published figures, we use the broader category and say so.
3. Place you in the range. Your answers give a score from 0 to 100. 0 is the lower quartile, 50 the median, 100 the upper quartile. The estimate never goes outside that range, so every number traces back to published sales.
4. Show how sure it is. The quick estimate asks 6 questions. Every question not asked, or answered "Not sure", counts as typical in your estimate, and your range runs from all of them going against you to all of them going your way. Each answer in the advanced questions narrows it.
5. Add and subtract what sits outside the multiple. Sellable inventory at cost is added as its own line. Overdue repairs are subtracted. Real estate is left out; value the building separately.
6. Check the floor. A business is worth at least what its assets would sell for: equipment at what it would fetch, sellable inventory at about 60% of cost (Moon Set's assumption), old stock at your own estimate, minus debts the buyer takes on. If that is higher, the floor is the value.

What changes for bigger businesses?

Under about $2 million of price, buyers are usually owner-operators and price on SDE. Above that, they hire a manager and price on EBITDA: SDE minus a market salary for the person who replaces you. The IBBA Market Pulse survey uses the same split. ^{[6, 7]} Between $2 million and $5 million the calculator shows both; above $5 million it uses EBITDA.

IBBA and M&A Source Market Pulse, Q2 2026 (survey July 1–15, 2026; released Aug 25, 2026). ^{[7, 6, 8]} On the EBITDA path your answers show as a stronger, typical or weaker flag, not a change to the number, because no quartiles are published to move within. Advisor ranges for larger firms in your industry are listed with the result, labeled as estimates.

Which businesses are valued on revenue?

Three: SaaS (on annual recurring revenue), accounting and CPA practices, and insurance agencies (on commissions). Their client or subscriber base renews on its own, so buyers price the revenue. For every other business, revenue multiples are only a cross-check.

How much in add-backs is too much?

Lenders start asking questions when "other" add-backs pass about 20% of SDE. That is a lender rule of thumb, not a limit. ^[5] Keep receipts for every one.

What moves the number up or down?

Few studies measure how much each factor moves a small business's price. Size is well measured; the rest are judgment calls that professional appraisers also make case by case. So the weights below are Moon Set's editorial weights, based on research, not measured effects. We'll revisit them as real data comes in.

What is customer concentration, and why do buyers pay less for it?

Customer concentration means one customer brings in a large share of your sales. If that customer leaves after the sale, the new owner loses that income overnight, and a bank may not lend against it. So buyers pay less, ask the seller to carry part of the price, or walk away.

In the calculator, a largest customer at 30% of sales or less is scored like the other factors. Above 30% we take 20% off the value, and above 40% we take 35% off. One M&A advisor puts the discount at roughly 20–35% and says buyers look harder above 20% from one customer and more of them walk away above 30%; ^[9] SBA lenders start asking questions at about 25%. ^[10] The exact steps are Moon Set's.

Could a buyer get an SBA loan at this price?

Most small businesses are bought with an SBA 7(a) loan, and the loan caps what a buyer can pay. The optional check uses the rules in effect from Oct 1, 2026: cash flow after the buyer's own salary must cover the loan payments at least 1.25 times, the buyer puts in at least 10%, and the loan is paid over 10 years. ^{[11, 12, 13]} The rate is the SBA's maximum for the loan size over the prime rate of 7.00% (as of Oct 20, 2026, checked Oct 24, 2026). ^{[14, 15]} These rule details come from lender summaries, not the SBA's own text .

When do you need a certified appraiser?

Whenever money changes hands or a court, a bank or the IRS will look at the number. That includes selling the business, an SBA or bank loan, buying out a partner, a divorce, an estate or gift, and an ESOP. Lenders, courts and the IRS expect a written appraisal from a credentialed professional.

• CVA, Certified Valuation Analyst: National Association of Certified Valuators and Analysts (NACVA), member directory
• ABV, Accredited in Business Valuation (a CPA credential): AICPA & CIMA, find a credential holder (choose ABV)
• ASA, Accredited Senior Appraiser in business valuation: American Society of Appraisers, find an appraiser

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How do I find an active investment partner?

Tell us about your business and what you need, and we'll introduce you to outside investors who want an active role. Introductions are free. Moon Set takes no fee and no percentage from any deal that comes of them.

An active partner puts in money and also works on the business: sales, operations, a board seat or hands-on help. In return they take ownership, so expect them to ask for your numbers, a plan and a say in decisions. The calculator above is a good place to start that conversation.

We can't promise funding. Investors decide for themselves whether to invest, and most businesses we introduce won't get an offer. Read every term sheet with a business attorney before you sign.

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What if I need a loan, not a partner?

Most owners grow on savings, sales and bank or SBA loans before they bring in investors, and a loan lets you keep all of your ownership. Getting funded compares the options from cheapest to most expensive.

What do businesses in my industry sell for?

See the median multiple and range for 160 types of business, what raises and lowers value in each, and the sources: business value by industry.

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Where do these numbers come from?