The value depends on a lot of variables, the most important being Seller’s Discretionary Earnings, or SDE, in an owner-operated business and EBITDA (Earnings before interest, taxes, depreciation and amortization) in larger business where the shareholders may be investors rather than owner-operators and have an executive officer running the business.
SDE and EBITDA involve recasting your Profit & Loss Statement to reflect the owner benefit the shareholders, owners or members receive from the business. We provide services to help determine the potential sales price of your business.
This article may helpful in determining the value of your business: Determine The Value Of Your Business