Know what your business is worth.
A few practical tools for owners thinking ahead: a directional valuation range, plain-English notes on taxes and income, and the same information packet a buyer would ask you for. Use what helps—no strings attached.
Things worth thinking through early
Short reads. The earlier you plan, the more options you keep.
Keeping more of the sale
How a deal is structured—asset vs. equity, how the price is allocated, installment timing—can change your after-tax proceeds meaningfully. The goal is simple: plan the structure before you agree to a number, not after.
Turning proceeds into a paycheck
For many owners the business was the retirement plan. Once it sells, the question becomes how to turn a lump sum into durable, predictable income. Mapping that out early often shapes what kind of exit you actually want.
What actually moves the number
Most small businesses trade on a multiple of owner earnings (SDE/EBITDA). Recurring revenue, low customer concentration, and an owner who isn’t the business all push the multiple up. The calculator below shows how.
Estimate a directional range
This uses real-world multiple ranges by industry, then adjusts for the factors buyers actually price on. It is a starting point for a conversation—not a formal appraisal.
This is a directional estimate generated from public small-business multiple ranges and standard buyer adjustments. Real value depends on financial quality, growth, assets, lease/transferability, and deal structure. It is not an appraisal or an offer.
The buyer’s information request
When someone evaluates a business, this is the information they need. Filling it out early—estimates and round numbers are fine—saves weeks of back-and-forth. Preview it below, or open the fillable packet—a clean, branded working document with charts that fill in as you type. Save it as a PDF whenever you’re ready.
Whether you sell on your own or work with a professional, every buyer will want this information eventually. Most owners don’t pull it together until they’re mid-diligence and scrambling. Organizing it up front makes the whole process cleaner, faster, and more transparent.
Preview the template
Confidential Information Memorandum — Information Request. Anything shared is held in strict confidence. Items needing backup (tax returns, statements) can simply be marked “available” and requested after a mutual NDA.
1 — Business snapshot
- Legal business name and owner(s)
- Location and service area covered
- Customer mix (e.g. residential vs. commercial %)
- Employee count (excluding owner)
- Asking price or expectation, if any
- Target close / handoff timing
2 — Business basics
- Year established (and year entity formed, if different)
- Addresses, phone, email, website, online profiles
- Brief history (2–3 sentences: founding and growth)
- Reason for selling and your plans afterward
3 — Services & revenue mix
- Each service line offered
- Approximate % of annual revenue per line
- Which lines are recurring vs. one-time
4 — Customers & contracts
- Total active customers; how many under recurring contracts
- Average ticket size and annual revenue per recurring customer
- Retention rate and average customer lifetime
- Customer concentration (any single customer >10% of revenue?)
- Primary acquisition channels, ranked
- Are contracts transferable to a new owner?
5 — Financial summary (last 3–5 years)
- Revenue, gross profit, and net profit by year
- Owner’s compensation and discretionary perks (add-backs)
- Recurring vs. one-time revenue split
- Outstanding debt or obligations that would transfer
6 — People & operations
- Roles, tenure, and pay of key employees
- Which tasks depend on the owner personally
- Software, systems, and vendors the business runs on
- Licenses, certifications, or bonding held
7 — Assets & transfer
- Vehicles, equipment, and tools included in a sale
- Real estate or lease terms (owned vs. rented)
- Intellectual property, brand, phone number, and domain
- Anything specifically excluded from a sale
Don’t worry about getting it perfect. Do your best, and gaps can be filled as the conversation develops.