It is the question every owner asks first, and the one that quietly shapes every decision that follows. While only the market can give a final answer, a professional valuation gives you a reliable range to plan around and to take to buyers with confidence. This guide explains, in plain English, what your business is likely worth, what moves that figure, and how to find out accurately rather than guessing.
Start with your profit
For most trading businesses, value starts with adjusted annual profit, usually EBITDA, after adding back one off and owner specific costs. Those adjustments matter, because they reveal the genuine earnings a new owner would inherit once your personal salary, expenses and any unusual costs are stripped out.
That adjusted profit is the figure buyers actually pay a multiple of, so getting it right and being able to evidence it is the foundation of a credible valuation.
Apply a sensible multiple
The profit figure is then multiplied by a number that reflects your sector, size, growth and risk. A small business that leans heavily on its owner sits at the lower end of the range, while a larger, growing business with recurring revenue and a capable team sits considerably higher.
The multiple is really the market's verdict on how safe your profits look. Anything that makes future earnings feel more certain tends to lift it.
Add assets and adjust for debt
Surplus assets such as property, equipment or stock can add to the headline figure, while any debt is deducted. The result is either an enterprise value or an equity value depending on how the eventual deal is structured.
This is one reason two businesses with the same profit can be worth quite different amounts: what sits on the balance sheet, and how the deal is framed, both feed into the final number.
Why an online calculator is not enough
Online calculators give a rough idea, but they cannot weigh the things that genuinely move your number. They do not know the quality of your earnings, the strength of your team, the appetite in your sector, or what similar businesses have actually sold for recently. They average everyone, and your business is not average.
Getting your real number from agentlocal
agentlocal offers a free, confidential valuation carried out by a dedicated agent who knows your market and benchmarks against real, recent sales. There is no obligation and no cost, just an honest figure you can actually rely on.
If you then choose to sell, that same realistic number becomes the basis of a fully managed sale to funded buyers, so you go to market with a price that holds up under scrutiny.
Key takeaways
- Value usually starts with adjusted profit (EBITDA).
- The multiple reflects sector, size, growth and risk.
- Assets add to and debt subtracts from the headline figure.
- Online calculators cannot weigh what really moves your value.
- agentlocal gives you a free, confidential valuation you can trust.
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