MultiplesBook answers

Every answer below is aimed at a question people measurably search for, is written from named sources, and links to the page that handles the job itself. None of them is a landing page in disguise.

The answers here are the questions an owner, a buyer or a founder asks while doing their own valuation arithmetic: how a dental, medical, veterinary, advisory, HVAC, plumbing, construction, restaurant, retail, service, healthcare, SaaS or software business is valued from its own earnings at the multiple they enter; how a startup's round becomes a pre-money and a post-money; how seller's discretionary earnings and EBITDA are calculated and which one the multiple is applied to; what fair market value asks of the inputs; what a valuation report and a checklist have to hold. Each one hands off to the free tool that does its arithmetic, with no account, and none of them publishes a multiple.

• Dental practice valuation calculator, from your own earnings

  A dental practice valuation from your own books: the practice's discretionary earnings times the multiple you enter.

• Medical practice valuation from the practice's own books, at the multiple you enter

  A medical practice valuation from your own books: discretionary earnings times the multiple you enter.

• Vet practice valuation, and the same sum for the allied practices

  A vet practice valuation from the practice's own books: discretionary earnings times the multiple you enter, plus drugs.

• RIA valuations from recurring revenue and earnings, at the multiple you enter

  RIA valuations from the practice's own books: recurring revenue and discretionary earnings times the multiple you enter.

• HVAC business valuation, and the same sum for the other home-service trades

  An HVAC business valuation from the company's own books: discretionary earnings times the multiple you enter.

• Construction company valuation: backlog, equipment and earnings at your multiple

  A construction company valuation from the company's own books: discretionary earnings times the multiple you enter.

• Restaurant valuation from the books: two methods, and the gap between them

  A restaurant valuation from the books: discretionary earnings times the multiple you enter.

• Retail business valuation: earnings at your multiple, with the stock on its own line

  A retail business valuation from the books: discretionary earnings times the multiple you enter, with inventory at cost on its own line. $180.

• Service business valuation from the owner's books, at the multiple you enter

  A service business valuation from the owner's books: discretionary earnings times the multiple you enter, little inventory.

• Healthcare valuation for an owner-run business, with the payer contracts as the question

  A healthcare valuation for an owner-run company: discretionary earnings times the multiple you enter, with payer contracts.

• SaaS valuation from recurring revenue, or from the round for a startup

  A SaaS valuation from the company's own figures: annual recurring revenue times the multiple you enter for a trading company.

• Software company valuation: what the company sells decides the method

  A software company valuation from the company's own figures: recurring revenue or discretionary earnings times the multiple you enter, with the code.

• Startup valuations from the round: the amount raised and the equity given, in dollars

  Startup valuations from the round: post-money is the amount raised divided by the equity given, pre-money is post-money less the raise. $500.

• Pre money valuation and post money, worked from a round of $500,000 for 20%

  Pre money valuation vs post money: post-money is the raise divided by the equity given, pre-money is post-money less the raise. $500,000 for 20% is $2,500.

• Value my business: the sum an owner can do before the broker's meeting

  Value my business from the last 12 months of books: discretionary earnings times the multiple you enter, inventory at cost on its own line.

• How to determine fair market value for a business, and where a signed opinion begins

  How to determine fair market value for a small business: what a willing buyer would pay a willing seller, worked as earnings times a multiple, $180.

• EBITDA calculator for a small business: from net income to adjusted EBITDA

  An EBITDA calculator: net income plus interest, taxes, depreciation and amortization. On $1,000,000 of revenue, $120,000 of net income with $60.

• EBITDA valuation for a small business: adjusted earnings times the multiple you enter

  An EBITDA valuation: adjusted EBITDA times the multiple you enter, plus inventory and equipment. $230,000 of adjusted EBITDA at 2.5 is $575,000; at 3.0.

• Seller's discretionary earnings: the figure an owner-run business is valued on

  Seller's discretionary earnings: net income plus the owner's whole salary and benefits, interest, depreciation, amortization and one-off costs. $120.

• Revenue multiple: three ways of writing the same earnings formula

  A revenue multiple valuation: revenue times the multiple you enter; a profit multiple: earnings times the multiple.

• Valuation report as a working document an owner or buyer writes

  A valuation report an owner or buyer writes: the earnings and add-backs, the multiple entered, the inventory and equipment.

• Business valuation checklist for the owner doing their own sum

  A business valuation checklist: the 12-month statements, the add-backs with their evidence, the multiple and where it came from, inventory counted at cost.