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Business Valuation & SDE Multiple Calculator

Calculate business market valuation, SDE and EBITDA multiples, revenue multiples, and SBA 7(a) loan acquisition financing across industry sectors.

Calculated Results

Estimated Business Fair Market Value
$504,000
Valued at 2.80× SDE (24.0% cash flow margin)
Valuation Range (Low - High)
$450,000 - $576,000
2.5× to 3.2× industry spread
Revenue Multiple
0.67× Revenue
Price to sales ratio
Buyer Payback Period
2.8 Years
ROI at current net earnings
Estimated SBA 7(a) Loan
$453,600
90% financing (10% buyer down)
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Frequently Asked Questions

What is Seller's Discretionary Earnings (SDE)?

SDE is the standardized cash-flow metric used to value small businesses under $5 million in revenue. It equals Net Profit plus Owner's W-2 Salary, discretionary personal perks (vehicle, travel), depreciation, amortization, and one-time non-recurring expenses.

What is the difference between SDE and EBITDA?

SDE includes the salary of a single full-time owner-operator and is used for Main Street businesses. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) assumes professional management is already paid as an operating expense and is used for mid-market companies ($2M+ EBITDA).

What typical multiples do small businesses sell for?

Most small businesses sell for 2.0× to 3.5× SDE. Highly scalable B2B SaaS companies sell for 4× to 8× ARR revenue, while asset-heavy or key-person-dependent businesses (e.g. solo medical practices or restaurants) sell for 1.5× to 2.5× SDE.

How does an SBA 7(a) loan impact business acquisition?

SBA 7(a) loans allow qualified buyers to acquire a business with as little as 10% cash down payment, with the federal government guaranteeing up to 75-85% of the 10-year loan balance for the lending bank.