Sell-Side · Step 2

Strategic Valuation Analysis

Pricing decides whether a business sells. LegacyOne values your business the way buyers and lenders will, and we do it at no charge.

← Back to Sell Your Business: the full six-step process

How we value your business

Normalize earnings. We rebuild earnings from your tax returns and statements, adding back owner salary, personal benefits, interest, depreciation and one-time costs.
Choose the right measure. SDE for most owner-operated businesses under roughly $2–5 million; EBITDA for larger companies with management in place.
Apply market multiples for your industry and size, adjusted for growth trend, customer concentration, management depth and years in business.
Value real estate and equipment separately when they are part of the sale.

What you get

A clear value range, the earnings figure it rests on, and the specific factors that would raise or lower it. You can test numbers yourself with our SDE and EBITDA calculator.

Frequently asked questions

How much does a business valuation cost?

Nothing. LegacyOne provides business valuations at no charge to owners considering a sale.

What documents do you need for a valuation?

Three years of tax returns and profit and loss statements, a current balance sheet, and a list of owner benefits and one-time expenses run through the business.

What is SDE?

Seller’s Discretionary Earnings: pre-tax profit plus one owner’s salary and benefits, interest, depreciation and amortization, and one-time expenses. It shows the total cash benefit to a single owner-operator.

Next step

Talk with LegacyOne Business Brokers

2323 Grand Avenue #148, Des Moines, IA 50312 · 515-505-5269 · info@legacyonebb.com