Free, Confidential Business Valuation for Owners

What you get with your free valuation

• A realistic value range for your business, based on its earnings and what buyers are paying for similar businesses, in a short written summary about a week after we receive your financials.
• What’s driving your number, good and bad, in plain English.
• What could raise it, with the changes that matter most to buyers if you have time before selling.
• Who would likely buy your business, whether that’s owner-operators, private equity groups or strategic buyers in your industry.
• Straight answers to your questions about timing, taxes to plan for (we’ll point you to your CPA for specifics), and how a sale would work.

What happens after you submit

1. We call you. A broker calls within a few hours to learn about your business and your goals.
2. We review your numbers. We’ll ask for your last 3 years of profit-and-loss statements and balance sheets, and keep them confidential.
3. You get your valuation. About a week after we receive your financials, you get a short written summary. We walk you through the range and what drives it. Then you decide what, if anything, comes next. There’s no obligation.

How is a small business valued?

Most small businesses are priced as a multiple of their yearly earnings. Two things decide your number: how much the business earns for an owner, and how many years of those earnings a buyer is willing to pay for.

What is SDE?

SDE (seller’s discretionary earnings) is the total financial benefit the business gives one owner-operator in a year. It starts with pre-tax profit, then adds back the owner’s salary and personal perks run through the business, interest, depreciation and one-time expenses. Buyers of most Main Street businesses use SDE.

What is EBITDA?

EBITDA (earnings before interest, taxes, depreciation and amortization) is the measure larger buyers use, usually for businesses with a management team in place, where the owner’s salary is treated as a normal cost. Private equity groups and strategic buyers mostly value businesses on EBITDA.

What multiple will a buyer pay?

The multiple depends on your industry, size, growth and risk. A business that runs without the owner, with steady, repeat customers and clean books, earns a higher multiple than one that depends on the owner for everything. We base your range on what buyers are actually paying for businesses like yours.

What makes a business worth more

Not selling soon? Exit planning helps you fix these before you go to market. Exit planning →

Owners who started with a valuation

TrueWave was patient and understanding while I prepared my cleaning business for sale. They guided me every step of the way and made the process seamless when the time was right.

Chris S., Commercial Cleaning Company

When I decided to retire, I wanted a buyer who would care for my employees and clients like I did. TrueWave understood that right away and found the perfect fit for my business.

Teri A., Leadership & Development Training

Business valuation questions

Is the business valuation really free?

Yes. It’s free, and there’s no obligation to sell or to list with TrueWave.

Is my information kept confidential?

Yes. We don’t share your details with anyone, and we never contact your employees, customers or anyone else about your business without your permission.

How long does a valuation take?

About a week after we receive your financials. A broker calls you within a few hours of your request to get started.

What information do you need?

To start, just the five fields on the form. To complete the valuation, we ask for your last 3 years of profit-and-loss statements and balance sheets.

How is a small business valued?

Most small businesses are valued as a multiple of their earnings: SDE for owner-operated businesses, EBITDA for larger ones. The multiple depends on industry, size, growth and risk, compared against what buyers are paying for similar businesses.

Is a broker’s valuation the same as a certified appraisal?

No. Our valuation estimates what buyers are likely to pay in today’s market, which is what you need to decide whether and when to sell. A certified appraisal is a formal report used for things like estate planning, divorce or some bank loans.

Do I have to sell after getting a valuation?

No. Many owners get a valuation to plan ahead. If you’re one to five years from selling, we can show you what would raise the value in the meantime.