Business valuation

What is your business worth?

A real answer starts with your numbers, not a calculator. We normalize your earnings, weigh the levers buyers actually pay for, and build a defensible valuation range grounded in comparable sales. It stays confidential, and there is no number before we see the financials.

01 · Normalize

Clean up the earnings

We recast your profit into SDE or EBITDA, adding back owner and one-time items so the number reflects what a buyer really earns.

02 · Right basis

SDE or EBITDA

Owner-operated businesses value on SDE; larger, manager-run companies value on EBITDA. We use the one a buyer of your business would use.

03 · Real comparables

What buyers actually paid

We anchor the multiple to comparable businesses that sold, not to asking prices or wishful rules of thumb.

04 · Value drivers

What moves your number

Growth, recurring revenue, margins, concentration, and transferability each push the multiple up or down. We show you which matter most for you.

05 · A defensible range

Not a single guess

You get a range you can defend in front of a buyer, the assumptions behind it, and a view on what it would take to reach the top end.

06 · Go to market

Turn the range into a price

When you are ready, we package the business, price it, and take it to qualified buyers discreetly. See how we sell a business.

What drives the multiple

The same revenue can be worth very different numbers.

Two businesses with identical sales rarely sell for the same price. These are the levers a buyer pays for, and the ones we help you improve before going to market.

Recurring revenue

Predictable beats lumpy

Contracts, subscriptions, and repeat customers earn a higher multiple than one-time project revenue.

Growth

Direction of travel

A business growing at double digits is worth more than a flat one at the same earnings.

Margins

Quality of earnings

Healthy, stable gross and cash-flow margins signal a durable business and support the top of the range.

Concentration

Who carries the revenue

If one customer, one supplier, or the owner carries too much, buyers discount for the risk.

Clean books

Diligence-ready numbers

Consistent, well-documented financials survive diligence and protect the price you agreed.

Transferability

Runs without you

Trained staff, documented systems, and transferable contracts let a buyer step in, which raises value.

✛ Confidential valuation

Find out what your business is worth.

Send a few details and we will reply personally to start a confidential valuation. Everything you share stays with us, there is no obligation, and we do not put a number on it before we see the financials. Our fees are transparent and success-based.

Confidential. Or email inquiries@greenridgegroup.org directly.

Answers

Business valuation: common questions

How much is my business worth?
Most small and lower-middle-market businesses sell for a multiple of normalized cash flow: seller's discretionary earnings (SDE) for owner-operated companies, or EBITDA for larger ones. The multiple moves with growth, margins, recurring revenue, customer concentration, and whether real estate is included. We build a defensible range from real comparable sales before you go to market. Figures you share are confidential and unaudited.
What multiple will my business sell for?
It depends on size and quality. Smaller owner-operated businesses commonly trade around 2 to 4 times SDE; larger, cleaner, faster-growing companies command higher EBITDA multiples. We anchor to what comparable businesses actually sold for, not to asking prices, and show you the levers that move your number up.
What is SDE, and how is it different from EBITDA?
SDE, seller's discretionary earnings, adds one owner's salary and discretionary costs back to profit and is used for owner-operated businesses. EBITDA removes financing and accounting effects and is used for larger companies run by a management team. We use whichever basis a buyer of your business would use, and state our add-backs clearly.
Do I need audited financials to get a valuation?
No. We start from the financials you already have, usually two to three years plus the current year to date, and normalize them. Clean, consistent books raise both the valuation and buyer confidence, so part of our work is getting the numbers ready to withstand diligence.
Is the valuation confidential, and is there any obligation?
Yes, and none. We work on a no-names basis and nothing you share leaves us. A valuation conversation does not commit you to selling or to engaging us.
How is a broker valuation different from a formal appraisal?
A certified appraisal is a formal opinion of value for a specific purpose such as a dispute, an estate, or an SBA loan. A broker valuation is a market view of what a real buyer would pay today. If you need a certified appraisal, we will say so and point you to the right professional.