Mentorship
How do I value my small business accurately?
Sarah M.2w ago2 replies112 views
I'm planning to sell my small retail business next year and want to understand the main methods used to value it — earnings multiples, asset value, or something else? What should I be preparing now?
Top answers
Priya AnandVerified Expert
For most owner-operated SMEs, buyers anchor on a multiple of seller's discretionary earnings (SDE). Start by normalising your financials — add back owner salary, one-off costs and non-essential perks — then benchmark against recent comparable sales in your sector.
41 found this helpful
Craig O.
Get at least two independent valuations before you go to market — buyers will push back on a single seller-commissioned number.
18 found this helpful
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