How to Value a Small Business
Valuation is more than a multiple. Use cash-flow discipline plus location and competitive context — the same diligence framing Bizgora brings to every listing.
Step-by-step
Start with normalized cash flow
Most Main Street deals are priced off seller’s discretionary earnings (SDE) or EBITDA after owner adjustments — not raw top-line revenue.
Apply an industry-aware multiple
Multiples vary by industry risk, growth, and transferability. Use industry context, not a generic rule of thumb.
Adjust for lease and location
Remaining lease term, rent escalations, and whether the trade area matches the customer base can move value as much as the P&L.
Factor traffic and competition
Foot and vehicle traffic, nearby substitutes, and market share tell you whether cash flow is durable.
Stress-test concentration risk
Customer concentration, key-person dependency, and deferred maintenance are common value killers in diligence.
Inside Bizgora
This page gives you the basics. Create a free account to unlock the full diligence toolkit buyers use every day.
- Interactive map with thousands of businesses for sale nationwide
- Bizgora DNA business strength score and model context
- Local demographics, vehicle and foot traffic, and nearby competitors
- Message the broker or seller directly
- Saved searches, favorites, and buyer profile matching