Business Valuation
Multi-method valuation with value driver analysis and enhancement roadmap
Estimated Valuation Range
Low
$4.8M
High
$8.1M
Most Likely: $6.2M
$4.2M
Annual Revenue
$1.44M
EBITDA
$785K
Net Income
$1.2M
SDE
$3.4M
Total Assets
78
Value Readiness
Valuation by Method
Value Drivers
Revenue Growth
+18%
Strong YoY growth adds premium
Recurring Revenue
62%
High % of revenue is recurring
Customer Diversification
Good
No customer > 10% of revenue
Owner Dependency
Med
Owner handles 30% of key accounts
Documentation
Gaps
SOPs for 60% of key processes
IP / Proprietary Tech
Weak
No patents, limited trade secrets
Value Enhancement Roadmap
Q1 2026 - Foundation+$200K value
Complete SOP documentation, formalize management team roles, clean up financials
Q2 2026 - Growth+$350K value
Increase recurring revenue to 70%, reduce owner dependency, hire key manager
Q3 2026 - Optimization+$500K value
File provisional patents, implement CRM, build management dashboard
Q4 2026 - Premium+$400K value
Diversify revenue streams, establish advisory board, finalize exit readiness
Industry Multiples Reference
| Industry / Sector | Rev Multiple | EBITDA Multiple | SDE Multiple | Typical Range |
|---|---|---|---|---|
| Your Sector (Tech Services) | 1.2-2.0x | 4.0-6.5x | 3.0-5.0x | $4.8M-$8.1M |
| SaaS / Software | 3.0-8.0x | 8.0-15.0x | 6.0-10.0x | Varies widely |
| Professional Services | 0.8-1.5x | 3.5-6.0x | 2.5-4.5x | $2M-$10M |
| Healthcare Services | 1.0-2.5x | 5.0-8.0x | 3.5-6.0x | $3M-$15M |
| Manufacturing | 0.5-1.2x | 3.0-5.5x | 2.5-4.0x | $2M-$8M |
| E-commerce / Retail | 0.5-2.0x | 3.0-6.0x | 2.0-4.0x | $1M-$10M |
Value Readiness Score
Good - Room for Improvement
Financial Performance88/100
Growth Trajectory82/100
Customer Base80/100
Management Team68/100
Documentation & SOPs62/100
IP & Differentiation45/100
Method Breakdown
Revenue Multiple$6.3M
$4.2M x 1.5x multiple
EBITDA Multiple$7.2M
$1.44M x 5.0x multiple
DCF Analysis$5.8M
10yr projections, 12% discount rate
Asset-Based$4.8M
Net asset value + goodwill
SDE Multiple$4.8M
$1.2M x 4.0x multiple