
Small Business Valuation: How It Actually Works in 2026
Most small businesses sell for 2.2x to 3.3x their Seller's Discretionary Earnings. Understand the three valuation methods, SDE vs EBITDA, and what actually drives your number.
Expert insights on M&A, valuations, and exit strategies for small business owners.

Most small businesses sell for 2.2x to 3.3x their Seller's Discretionary Earnings. Understand the three valuation methods, SDE vs EBITDA, and what actually drives your number.

Six million U.S. small businesses will face ownership transitions by 2035 representing $5 trillion in enterprise value. 92% will close without a sale. Here is why — and what the 8% who exit successfully do differently.

EBITDA multiples by industry range from 3.0x to 12.0x for SMB service businesses. Complete data table with ranges, medians, and the factors that push businesses to the high or low end.

A single customer that represents more than 20% of revenue typically cuts a business valuation by 10-25% in diligence. The owner usually finds out at the LOI stage, not before.

The single biggest tax-related decision in a business sale is almost never made during the sale. It is made years before, when the founder structures the entity and addresses estate planning while the company value is still relatively low.

AI-driven M&A advisors source 5-20x more buyers, generate first offers 60-70% faster, and typically charge no upfront retainer. Here's how the two models compare on fees, timelines, and outcomes.

HVAC business valuation multiples in 2026 range from 3x to 10x EBITDA, depending on revenue size, recurring maintenance contract revenue, owner dependency, and geographic density.

A practical guide for business owners with $2M to $50M in revenue who want to maximize their exit value.

Not all buyers value your business the same way. Understanding the difference is one of the most important factors in determining price, terms, and speed.

Earn-outs are one of the most common — and most misunderstood — deal structures in business sales. This guide answers the 12 questions every seller asks, backed by real transaction data.

Most business sales take 6 to 10 months from preparation to closing. See real timelines for each phase and what causes the biggest delays.

A letter of intent sets the framework for your entire deal. Learn which terms are binding, what to negotiate, and the most common mistakes sellers make.

10 steps to complete before taking your company to market. Covers financials, QoE reports, SOPs, valuation, and deal team assembly.

Most owners think preparation starts when they decide to sell. In reality, the outcome is largely determined months or years before that moment.

Lowball offers frustrate business owners. But here's the uncomfortable truth: Lowballing is not bad behavior. It's rational behavior.

Most business owners believe price is negotiated. In reality, price is discovered. Nothing changes outcomes more reliably than a properly run competitive auction.

Business valuation is not a single number. It is a range, shaped by earnings quality, risk, buyer type, deal structure, and the process used to sell the business.

AI is not making advisors faster at the same work. It's changing how sell-side M&A is executed at a fundamental level — especially for owner-led businesses.
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