How much is my business worth?

The short answer: profit times a multiple

Buyers of established private companies usually start with EBITDA - earnings before interest, tax, depreciation and amortization - and multiply it by a figure that reflects how attractive and how risky the business is. The result is the enterprise value: the price for the business as a whole, before debt and cash are accounted for.

So the two questions are: what is your EBITDA, and what multiple would a buyer pay for it?

What buyers have actually paid

GF Data tracks completed private-equity-backed transactions in the middle market. Its figures show a clear pattern: larger companies sell for higher multiples.

Average of GF Data’s annual figures for 2021 to 2025 year to date. For smaller deals, GF Data reports that transactions valued at $10M to $25M averaged 6.2x to 6.7x EBITDA in the first half of 2025.

Averages hide a wide spread. Two companies of the same size can sell a full turn of EBITDA apart, or more, depending on the factors below.

Is “a $10 million business” revenue or profit?

Owners often describe their company by revenue, but buyers price profit. A business with $10 million of revenue and a 10% margin has $1 million of EBITDA; one with a 30% margin has $3 million. At similar multiples, the second could be worth three times as much.

That is why “how much can I get for my $10 million, $20 million or $30 million business?” has no single answer. Revenue tells a buyer about scale; EBITDA, and how reliable it is, drives the price.

What a business with $2M to $10M of profit might sell for

The table below simply applies the average multiple for each size band. It is an illustration of where the market has been, not a valuation of any particular company.

A company with strong growth, recurring revenue and a capable team can sell well above these figures. One that depends on its owner or a single customer can sell well below them.

What moves your multiple

Sector. Some industries consistently attract higher multiples. Over 2021 to 2025, GF Data’s averages for $10M to $250M deals were about 8.6x for technology, 8.4x for healthcare services, 7.3x for business services, 7.1x for distribution and 7.0x for manufacturing.

Growth. Buyers pay for the future. Steady or fast growth over the last three years supports a higher multiple; flat or declining revenue lowers it.

Recurring revenue. Contracts, subscriptions and repeat customers make future profit more predictable, and predictability is worth paying for.

Customer concentration. If one customer accounts for a large share of sales, losing them would hurt badly. Buyers price that risk in.

Dependence on the owner. If the business would struggle without you for three months, a buyer is really buying you, and you are leaving. A strong second tier of management raises value.

Quality of earnings. Clean, well-documented financials that hold up in due diligence protect the multiple you agreed at the letter of intent stage.

Enterprise value is not what you take home

The headline price is for the business free of debt and with a normal level of working capital. What reaches your bank account also depends on:

• Debt repaid at closing, and any surplus cash you keep.
• Working capital adjustments if the business is handed over with more or less than normal.
• Deal structure - cash at closing versus earn-outs, deferred payments or equity you roll into the new ownership.
• Fees and taxes on the sale. Our guide to the cost of selling a business covers advisory fees; take tax advice early.

Getting a real number

An estimate is a starting point. The price a buyer will actually pay depends on your full financials, the deal terms and which buyers are interested. Casspium’s clients are private equity firms and corporate buyers actively looking for companies like yours, and because they pay our fee, a confidential conversation costs you nothing. See how we work with owners.