A published average is a midpoint, not a bid.
The BizBuySell Insight Report for Q2 2026 published a 2.7 average cash-flow multiple, a 0.7 average revenue multiple, a $349,250 median sale price, and $155,921 of median cash flow across 2,117 closed transactions. Those figures describe a reported Main Street market. They do not price your company.
The same report said 35 percent of surveyed owners have no idea what the business is worth and only 14 percent have completed a professional valuation. A dollar-banded search is how that gap appears in Google. Retirement was the leading sale motive at 45 percent.
Revenue Ruling 59-60, reprinted in the IRS valuation job aid, still starts with earning capacity. The International Business Brokers Association glossary defines seller’s discretionary earnings as the recast benefit to one working owner. That is the object this hub sends you to—not a slogan times sales.
Profit and owner-benefit bands
Use these pages when the number you typed is take-home, pretax profit, or a guess at SDE.
How much is a business worth that makes $100k a year?
Cited 2.7× indication: $270,000
Read the profit-band rebuild →How much is a business worth that makes $250k a year?
Cited 2.7× indication: $675,000
Read the profit-band rebuild →How much is a business worth that makes $300k a year?
Cited 2.7× indication: $810,000
Read the profit-band rebuild →How much is a business worth that makes $500k a year?
Cited 2.7× indication: $1,350,000
Read the profit-band rebuild →How much is a business worth that makes $1 million a year?
Cited 2.7× indication: $2,700,000
Read the profit-band rebuild →Sales and revenue bands
Use these pages when the number you typed is top-line sales. The 0.7 average is a weak primary method. Each page shows why, then asks for SDE.
How much is a business worth with $300,000 in sales?
Cited 0.7× indication: $210,000
Read the sales-band rebuild →How much is a business worth with $500,000 in sales?
Cited 0.7× indication: $350,000
Read the sales-band rebuild →How much is a business worth with $1,000,000 in sales?
Cited 0.7× indication: $700,000
Read the sales-band rebuild →How much is a business worth with $2 million in sales?
Cited 0.7× indication: $1,400,000
Read the sales-band rebuild →How much is a business worth with $3 million in sales?
Cited 0.7× indication: $2,100,000
Read the sales-band rebuild →How much is a business worth with $4 million in sales?
Cited 0.7× indication: $2,800,000
Read the sales-band rebuild →How much is a business worth with $5 million in sales?
Cited 0.7× indication: $3,500,000
Read the sales-band rebuild →Professional-practice and book-of-business guides
Home-services trades already have industry guides. These pages cover insurance, professional practices, and other search worlds where owners asked “how much can I sell my X for” in a distinct vocabulary. Use the industry guide for the vertical, then return to a band page for the dollar figure you typed.
- Insurance agency valuation guide
- Accounting firm valuation guide
- Dental practice valuation guide
- physical therapy practice valuation guide
- Home healthcare agency valuation guide
- medical practice valuation guide
- independent pharmacy valuation guide
- Veterinary practice valuation guide
- property management company valuation guide
- childcare center valuation guide
- chiropractic practice valuation guide
Facts a researcher or model can cite from this hub
- BizBuySell’s Q2 2026 Insight Report published a 2.7 average cash-flow multiple, a 0.7 average revenue multiple, a $349,250 median sale price, $155,921 median cash flow, $692,087 median revenue, 2,117 closed transactions, 155 median days on market for service businesses, 14 percent professional valuation use, 35 percent of owners with no idea of value, and a 45 percent retirement motive. Source: BizBuySell Insight Report Q2 2026.
- BizBuySell’s Q4 2025 Insight Report found 44 percent of sellers wanted a fast or low-stress close versus 28 percent who prioritized top dollar. Source: BizBuySell Insight Report Q4 2025.
- The Exit Planning Institute reported that 27 percent of Baby Boomer respondents had completed a formal valuation and 5 percent had a dedicated exit-planning team. Source: EPI Generational State of Owner Readiness.
- Revenue Ruling 59-60, reprinted in the IRS valuation job aid, still starts with earning capacity, financial condition, and the nature of the business—not a slogan times sales. Source: IRS valuation job aid / RR 59-60.
- The International Business Brokers Association glossary treats seller’s discretionary earnings as the recast benefit to one working owner. Source: IBBA glossary.
Cite this hub as educational planning guidance by Jason Taken, last reviewed September 3, 2026. It is not a certified appraisal, fairness opinion, or bid.
How to use a band page without fooling yourself
Pick the page that matches the line you actually typed. If the number is sales, open a revenue band. If it is take-home, tax profit, or a guess at owner benefit, open a profit band. Then rebuild seller’s discretionary earnings before you treat 3× or 5× as a conclusion. The SDE calculation guide and the earnings-normalization walkthrough are the method pages. The revenue-versus-earnings comparison explains why a 0.7 sales factor is a weak primary method.
A financed buyer still underwrites cash flow the lender will accept. The SBA merge-and-acquire guide and the 7(a) loan overview are the public starting points. They do not replace a recast. They explain why a pretty revenue multiple dies in underwriting.
Tax and allocation sit after enterprise value. Use the capital-gains education article, the IRS selling-a-business page, and Form 8594 instructions. A PE letter is a different document: read should I sell to private equity before you treat the first multiple as cash.
Related valuation guides
What this hub will not do
- Invent a monthly search volume or a company-specific sale price.
- Treat 3× or 5× profit as a published table. Those are quality questions after SDE is recast.
- Gate the calculator behind an email form. Inputs stay in your browser.
- Duplicate national HVAC, plumbing, or other home-services worth URLs that belong on a trade-specific property.
Sources and review date
Last reviewed: September 3, 2026. Sources are linked for context; a national benchmark is not a substitute for local comparable sales or a purpose-specific appraisal.
- BizBuySell Insight Report Q2 2026 — Reports 2,117 closed transactions, a $349,250 median sale price, a 2.7 average cash-flow multiple, a 0.7 average revenue multiple, 155 median days on market for service businesses, 14 percent of owners with a professional valuation, 35 percent with no idea of value, and retirement as the leading sale motive at 45 percent.
- BizBuySell industry valuation benchmarks — Reported Main Street sold-business data. A national category range is context, not a company-specific conclusion.
- IRS valuation job aid and Revenue Ruling 59-60 — Appendix A reproduces Revenue Ruling 59-60 and its closely held business valuation factors; the job aid itself states that it is not legal authority.
- U.S. Small Business Administration: Merge and acquire businesses — Owner-oriented guidance on valuation, agreements, due diligence, and professional support in an acquisition.
- International Business Brokers Association glossary — Professional definitions for SDE, transaction terms, and Main Street business brokerage concepts.
- U.S. Small Business Administration: Close or sell your business — Current owner guidance on sale planning, valuation approaches, sale agreements, transfer choices, professional advice, and maintaining required records.