A starting point for a better conversation.
The calculator does not verify financial statements, add-backs, contracts, customer retention, owner duties, licenses, equipment condition, working capital, debt, or real estate. It shows how a transparent earnings method works and where public market context exists.
Use the result to identify questions, not to set a final asking price, file a tax return, resolve a dispute, support litigation, or satisfy a lender.
Why some industries do not receive a numeric range
A range is shown only when the project’s transparent data file contains a public lower and upper quartile based on reported sold businesses. When reliable public evidence is unavailable—or when the company appears larger than the Main Street sample—the calculator stops at SDE and adjusted EBITDA.
That restraint matters. A plausible-looking multiple without a traceable population, period, and earnings definition can create false precision.
What the range does not include
- Debt, cash, and debt-like obligations
- Ordinary or excess working capital
- Owned real estate or non-operating assets
- Deferred capital expenditures and equipment condition
- Buyer-specific synergies, financing, earnouts, or seller notes
- Taxes, transaction expenses, escrow, and net proceeds
Sources and review date
Last reviewed: July 26, 2026. Sources are linked for context; a national benchmark is not a substitute for local comparable sales or a purpose-specific appraisal.
- IRS Revenue Ruling 59-60 — Foundational factors for valuing closely held interests; no single formula fits every case.
- U.S. Small Business Administration — Business valuation guidance for owners considering a sale or acquisition.
- IBBA glossary and SDE guidance — Definitions used by business brokers and advisers.
- BizBuySell valuation benchmarks — Reported sold-business data and industry context for Main Street transactions.