THE VALUE WORKSPACE / Value scenarios
Explore value.
See the assumptions.
See how earnings and a selected multiple range change an illustrative business value. Every assumption is visible and editable.
Set your scenario
The default 2.5×–3.5× range is an example, not a sourced industry benchmark. Change it to a supported range appropriate to your business and earnings basis.
Your inputs stay in this browser tab. We do not send calculator figures to analytics or save them to a server.
UNDERSTAND THE METHODOLOGY
Simple arithmetic. Explicit boundaries.
Midpoint = annual earnings × average of the low and high multiple assumptions.
Choose comparable evidence that matches the industry, business size, earnings metric, geography, and assets included. A multiple of SDE is not interchangeable with a multiple of EBITDA.
Clarify what is included
This tool models the operating business only. It does not automatically add equipment, inventory, real estate, excess cash, or working capital. Operating equipment may already be included in comparable business-sale prices. Adding it again can double count value. Agree on the basis before comparing figures.
Debt, transaction costs, working-capital adjustments, and deferred consideration affect proceeds. Use the seller proceeds planner to explore those separately. A loss-making, asset-heavy, or early-stage business may require another valuation method.
Continue your research
Sources & scope
- BDC: valuing a business acquisition ↗ — General valuation methods and the role of adjusted earnings; not U.S. industry multiple benchmarks.
Sources explain concepts, not the example inputs. Default multiples, fees, rates, and reserves are illustrative assumptions, not market quotes. Read our methodology policy.