Business Valuation Resources
Whether you’re buying a business, planning to sell your business, or looking to raise capital, understanding the business value is essential.
BizBuySell has the resources you need:
- Learn how businesses are valued by reading our free eBook.
- Understand the market with BizBuySell's Insight Report and Multiples Charts.
- Get help with BizBuySell's Business Valuation Products.
Industry Valuation Benchmarks
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Industry Valuation Benchmarks
Learn how to value different types of businesses with detailed multiple data, transaction trends, and financial benchmarks tailored to specific industries.
Business Valuation Methods and Concepts
- Reference charts
Valuation Multiples by Industry
These reference tables will provide you with average revenue and earnings multiples for over 100 types of businesses.
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How to Benchmark Your Small Business
Benchmark your business against industry standards. Discover key performance metrics, data sources, and analysis methods to evaluate your business performance.
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Valuing a Business Based on Revenue
You can value a business based on revenue, but keep in mind without considering profit, you're not getting the whole picture.
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How Multiples Are Used
Most buyers and sellers will rely on market valuation to gauge a business. Multiples are the tool they use.
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Using "Comparable" Sales in a Business Valuation
There are several methods for valuing a business for sale, using comps—or comparables—compares financial metrics in similar industries, locations, size, and other factors to determine valuation.
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Why Business Valuations Vary
When it comes to buying or selling a business, business valuations often vary. Discover the key factors that cause valuations to vary and how to navigate these differences effectively.
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How Business Size Drives Up Valuation Multiples
The bigger the business, the bigger the valuation multiples. Find out why this is almost always the case.
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Appraised Value vs. Market Value: Distinctions in Business Valuation
Appraised value and market value are essential in business valuations. Appraised value provides a structured, objective assessment while market value aligns with real-world market dynamics.
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What is Enterprise Value? Understanding Total Business Worth Beyond Purchase Price
Learn what enterprise value is and why it matters in small business valuation and sales. Understand how debt, cash, and financial arrangements affect business valuation.
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Understanding Going Concern Value
Learn how going concern value impacts your business's worth, how it differs from liquidation value, and strategies to maximize your business's value when preparing to sell.
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Not Just for Selling: How Business Owners Leverage Valuations
Discover how business valuations serve as strategic tools beyond determining sale price. Learn how current valuations support financial planning, estate planning, and secure your company's long-term stability.
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How Often Should You Value Your Business?
Explore the key factors influencing the frequency of business valuations, such as industry dynamics, growth stage, economic conditions, and specific circumstances, to help determine an optimal valuation schedule that maximizes value and mitigates risks.
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Pre-Revenue Valuation Methods for Small and Growing Businesses
Pre-revenue valuation methods to help small business owners, buyers, and sellers determine business worth. Learn practical approaches and avoid common mistakes.
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Avoiding Common Pitfalls in a Business Valuation
Discover the importance of relying on professionals when valuing your business for sale to avoid common valuation mistakes business owners make.
Financial Metrics & Analysis
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Seller's Discretionary Earnings (SDE): An Overview
SDE is the favored cash flow metric of small business buyers and sellers. Learn what it is, and how it's calculated.
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Add-Backs for Seller’s Discretionary Earnings
Calculating SDE involves 'adding back' several expenses. Find out which add-backs are acceptable - and which may cause trouble.
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What Is EBITDA and Why It Matters in Business Sales
A key financial metric for valuing growing small businesses. Discover its meaning, importance in acquisitions, and how to calculate it.
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Cash Flow vs. EBITDA: Which Valuation Metric Should You Use When Buying or Selling a Business?
Learn when to use cash flow vs. EBITDA in small business valuation, which metric is right for owner-operated businesses vs those with management teams.
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Cash Flow—What Is It and Why Is It Important When Valuing a Business for Sale?
Cash flow, the movement of money into and out of a business, is an important financial metric that illustrates the overall health of a business.
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What Is Discounted Cash Flow?
Learn about discounted cash flow analysis for business acquisitions and sales. Get step-by-step formulas to calculate and methods for accurate valuations.
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COGS: Understanding Cost of Goods Sold and Its Role in Business Valuation
Understand the meaning of COGS (Cost of Goods Sold) and its impact on business valuation. Learn how to calculate COGS to make informed decisions when buying or selling a business.
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Income Statement: Understanding Profitability Before You Buy or Sell
An income statement shows a business's revenue, expenses, and net income over time. Learn how sellers prepare and buyers evaluate income statements during business sales.
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Quality of Earnings Report: Determining a Business’s Value
A quality of earnings report is performed during the due diligence process of a business transaction to better understand a businesses historic earnings and the potential for future performance.
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Separating Personal and Business Financials for Small Business Owners: A Key to Successful Valuation and Sale
Discover why separating personal and business finances is important for effective financial management and accurately valuing a business for sale. Learn how this practice streamlines the process of selling your business.
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Cleaning Up Financial Statements for Accurate Business Valuation
Learn how small business owners can clean up financial statements to reveal true earnings and prepare for valuation and sale.
Asset Valuation & Components
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What is FF&E (Furniture, Fixtures & Equipment)?
When it comes to buying or selling a business, furniture, fixtures, and equipment are tangible assets that are important to consider during valuation.
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What Is Purchase Price Allocation?
This guide explains the importance and impact of purchase price allocation on financial reporting and its tax implications when selling or buying a business.
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How Intangible Assets Impact Valuation
Discover how to value intangible assets effectively. Learn what intangible assets are and the key methods used for their valuation to ensure accurate business transactions.
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How to Value Goodwill in Business
This guide covers how to value goodwill, breaking down how to calculate it—subtract the fair value of net assets from the purchase price—and providing examples.
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How to Value Inventory When Selling a Business
When preparing to sell your business, valuing inventory is important to ensure you get the most accurate and profitable valuation for your assets.
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How to Value Equipment When Selling a Business
Explore the importance of equipment valuations, the most commonly used valuation methods, and how to choose the right approach when selling a business.
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How Digital Assets and IP Impact Your Business Value
Learn how digital assets and intellectual property, including websites, social media, and digital platforms, impact your business value.
Real Estate & Location Considerations
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Do Business Valuations Include Real Estate? How To Value Real Estate When Selling a Business
Discover how real estate can enhance and impact the value of a business. Considerations for real estate holdings when valuing a business for sale.
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Leasehold Improvements in Business Valuation: A Guide for Buyers and Sellers
Understand how leasehold improvements impact business value when buying or selling a company. Learn about ownership rights, valuation methods, and negotiation strategies.
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Understanding Rent to Revenue Ratio in Business Valuation
Discover how the rent to revenue ratio impacts business valuation and the buying or selling process. Learn what percentage of rent your business should be paying.
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Financial Considerations of Owning Business Property: Should The Business Pay Rent When Its Owner Owns the Property?
Our guide to the financial considerations for business owners who own the property for their business and the pros and cons when their business pays rent when it's owner also owns the property.
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Normalizing Adjustment in Rent for Business Appraisal
One of the most important normalization adjustments business appraisers consider is that of the rent adjustment.
Special Circumstances and Value Drivers
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How to Increase Business Value to Build a Company Buyers Want to Buy
Discover strategies to increase business value and build a company buyers want at premium prices. Learn actionable methods to enhance company valuation, create scalable operations, and maximize business attractiveness.
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How to Value a Business in a Divorce
Learn how to value your business during a divorce. BizBuySell reviews the unique considerations to be aware of when pursuing a business valuation.
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How To Value a Small Business That’s Losing Money
Valuing a small business that’s losing money can be challenging, but it’s essential for making informed decisions. This article explains how to value a small business that’s losing money.
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How to Value Seasonal Businesses
Learn how to value your seasonal business with insights on valuation methods, revenue normalization, and key factors that impact the worth of the business.
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Family Business Valuation: Guide to Valuing Family-Owned Companies
Guide to valuing family-owned businesses. Learn how to account for unique family business factors, normalize earnings, and assess intangible assets for accurate valuation.
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How to Value a Subscription-Based Business
Learn how to value a business with subscription-based revenue models, including common valuation methods, metrics, and industry standards.
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How To Run a Business as an Absentee Owner to Boost Value
When selling a business, running it as an absentee owner increases value. Business owners should shift from hands-on to hands-off to boost value.
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How Online Reputation Management Can Affect Your Business’s Value
Discover how a business’s online reputation can affect its value and learn strategies to manage and enhance your business’s reputation to boost value when selling.
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How Does the Economy Impact the Value of a Business?
Discover how the economy impacts the value of your business. This guide explores how valuation methods and considerations change depending on the strength of the economy.
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How Recurring Revenue Boosts Business Valuation
Explore the importance of recurring revenue in business valuation and learn how recurring revenue impacts the buying and selling process.
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Understanding Customer Value: A Key Driver Business Valuation
Customer value directly impacts business valuation. Learn how metrics like lifetime value and satisfaction scores drive your company's worth to buyers.
Franchise Valuation
Professional Services & Methodology
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Why Experienced Business Brokers & Owners They Represent Utilize Third Party Business Appraisals
Improperly valued small businesses generally benefit no one, often putting both the owner who wants to sell and their broker at a disadvantage. Increasingly, successful brokers and their respective sellers can set the price and defend it with objective credentials third party appraisals.
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Mixing Apples and Pineapples: The Build-Up Method in Business Valuation
There are many methods available for determining the risk rate for various income streams, but one of the more commonly used methods is called the Build-up method.
