THE SHORT ANSWER
Reconcile repairs, support work and refurbished sales separately, then evaluate full-business earnings and the owner role. A refurbishment margin is not annual cash flow, and a support contract is not automatically more valuable than a walk-in customer. Define which stock and equipment a proposed value includes. No standard sector multiple or certified appraisal follows from this guide or its calculator.
Trace the service mix into earnings
Reconcile earned sales, direct parts and labor, rework, refunds, supplier credits and overhead for consistent periods. Distinguish unpaid bills, deposits, open jobs and earned collections. Review how recovery projects, outsourced specialist work and refurbished units affect costs and timing.
Use the earnings basis guide before presenting SDE or adjusted EBITDA. Determine owner production, account management and administration, including supported replacement costs under a buyer’s operating model. Owner withdrawals are not automatically deducted wages; personal loan principal and capital renovations are not blanket expense add-backs.
SEC guidance addresses adjusted measures in issuer reporting.
(SEC: non-GAAP financial measure interpretations)Use it as a presentation reference with accountant review, rather than a private-company valuation rule or approval of every adjustment.
Test refurbished sales without annualizing a selected unit
| Invented refurbished-unit bridge | Amount |
|---|---|
| Specified earned sale price | $400 |
| Owned unit acquisition cost | −$150 |
| Specified parts cost | −$80 |
| Specified repair labor | −$60 |
| Contribution after only these costs | $110 |
Test actual return rates, time on the shelf, rework and cost allocation across the full sold population. An unsold refurbished device has not produced this margin. Do not turn one selected success into the next year’s earnings forecast.
Define owned stock and included assets
Reconcile units, spare parts, customer property and consignment by title, condition and recorded value. Review obsolete parts and resale restrictions rather than valuing every item at retail price. Separately identify leased equipment and personal technician tools.
SBA sale guidance addresses assets, liabilities and the agreement.
(SBA: closing or selling a business)Specify normal operating inventory, receivables, deposits and equipment in the proposed price scope. Use the working-capital worksheet to avoid adding stock twice when already included in the valuation or delivery requirement.
Connect data practices to the proposed operation
Review actual custody, security issues, software rights and refurbishment controls. NIST’s Revision 2 abstract places sanitization within a program using applicable controls and information sensitivity.
(NIST: media sanitization guidance, Revision 2)Qualified review of actual records is required; a sanitization assertion does not establish a dollar premium or erase liabilities. Review authorization and ownership before processing media.
Use the service-contract guide to examine the real economics of commercial support. Select comparison evidence with consistent earnings measures, period and asset scope. Do not assign a 2.0–3.5x range, ±15% adjustment or higher multiple solely for ten years of operation.
Owner questions
Is refurbished-unit contribution the same as SDE?
No. Reconcile the whole business, costs, owner role and supported adjustments.
Should equipment be added to an earnings value automatically?
Define what that value already includes before proposing any separate asset addition.
Does the free calculator provide a certified appraisal?
No. It models disclosed assumptions; a formal valuation requires its own qualified engagement.
Sources and review scope
Source review completed . The sources below support the identified concepts or rules; they do not validate hypothetical amounts or a valuation of your business.
- SEC: non-GAAP financial measure interpretations
Staff interpretations last updated December 2022: recurring operating costs and distinguishing EBITDA from adjusted measures. SEC reporting context, not a universal private-sale rule or automatic acceptance of add-backs.
- SBA: closing or selling a business
Valuation approaches, sale agreements, assets and ownership transfer.
- NIST: media sanitization guidance, Revision 2
September 2025 Revision 2 publication landing-page abstract: program, sensitivity and applicable controls for sanitization and disposal. Publication replaces Revision 1. No full PDF, algorithm verification, device certification or universal legal mandate claimed.
Confirm tax, legal, accounting and lending applications with the relevant professionals. Historical market observations describe the stated period and reported sample.
This is educational material. Industry figures and program rules can change; check the original sources and your advisors before applying them to a transaction. Calculator scenarios are not appraisals, lending decisions, or offers.
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