What Is Your Business Actually Worth to a Buyer?

Enter your normalized EBITDA and select your industry to generate an indicative value range using the EBITDA multiples observed in lower middle market transactions. Then assess the factors that move your business toward the high or low end of that range.

This worksheet produces an indicative range only. It does not constitute a formal valuation or opinion of value. Contact Horizon M&A Advisors for a professional Advisor's Opinion of Most Probable Selling Price.

Enter Your Business Information

Normalized EBITDA (Annual, USD)

Use your normalized EBITDA — owner compensation add-backs included, one-time items removed. If unsure, use your best estimate.

Primary Industry

Select the category that best describes your primary revenue source.

Lower Middle Market EBITDA Multiple Reference

Industry	Typical LMM Range	Drivers of High End
IT Services / Managed Services	5.0x – 9.0x	Recurring MRR, long-term contracts, low churn
Software / SaaS	5.5x – 10.0x	ARR growth, net revenue retention >100%, IP ownership
Healthcare Services / Health Tech	5.5x – 9.5x	Payor diversification, regulatory compliance, census growth
Semiconductor / Electronic Testing	5.0x – 8.5x	Proprietary test IP, long-term OEM relationships
Manufacturing (Specialty / Precision)	4.0x – 7.0x	Sole-source relationships, defensible IP, long customer tenure
Distribution / Logistics	3.5x – 6.0x	Exclusive supplier arrangements, last-mile capability, proprietary tech
Business Services / Professional Services	4.5x – 7.5x	Retainer revenue, low customer concentration, scalable model
Facility Services	4.0x – 6.5x	Multi-year contracts, low churn, geographic density
Specialty / Skilled Trade Contracting	3.5x – 6.5x	Licensed workforce, recurring service agreements, diversified backlog
Solar EPC / Renewable Energy	4.0x – 7.0x	Contracted backlog, C&I focus, self-perform capability

Multiples reflect enterprise value / normalized EBITDA for businesses with $2M–$10M EBITDA transacting in 2023–2025. Ranges are illustrative and vary by deal size, market conditions, and individual business characteristics.

Assess Your Multiple Adjustment Factors

Check each item that applies to your business. Compression factors push your multiple toward the low end of the range. Expansion factors push it toward the high end.

Indicative Enterprise Value Range

Conservative (Low Multiple)

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Enter your EBITDA and select an industry to calculate.

Mid-Point Estimate

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Optimistic (High Multiple)

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Important: These figures represent an indicative enterprise value range only, based on observed LMM transaction multiples. Enterprise value is not the same as proceeds to the seller — adjustments for debt, working capital, transaction costs, taxes, and deal structure will affect net proceeds. A professional Advisor's Opinion of Most Probable Selling Price from Horizon M&A Advisors will provide a more accurate and defensible valuation.

Get a professional valuation for your business. A complimentary 30-minute strategy call with Dave Halvorson will provide a professional assessment of your business's value, the specific factors most likely to affect your multiple, and a realistic view of what you could expect to net after a transaction.

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This worksheet is provided for informational and educational purposes only. It does not constitute a formal business valuation, fairness opinion, or Advisor's Opinion of Most Probable Selling Price, and should not be relied upon for transaction, tax, legal, or financial planning purposes. Multiple ranges are based on generalized lower middle market transaction data and do not account for the specific characteristics of any individual business. Horizon M&A Advisors makes no representation as to the accuracy of these ranges for any particular business or market condition. Consult a qualified M&A advisor, CPA, and legal counsel before making decisions regarding the sale of a business.