The Crimson Bench

Entrepreneur · Free Interactive Tool

Business Value (SDE) Estimator

A quick, buyer-style valuation of a small business.

Your Numbers

The Result

SDE$260,000
Estimated value$780,000

The Operator's Read

Buyers value small businesses on SDE, not net profit. At this multiple, roughly $780,000. Growing SDE or the multiple (recurring revenue, clean books) both raise the price.

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Built by The Crimson Bench · Educational tool, not financial advice

About the Business Value (SDE) Estimator

Add back owner salary and one-time expenses to net profit for Seller’s Discretionary Earnings, then apply a typical multiple.

How the Business Value (SDE) Estimator Works

4 inputs in, 2 results out — computed live on your device. Here's exactly what it uses.

InputExample value
Net profit$150,000
Owner salary add-back$90,000
Other add-backs$20,000
Multiple (SDE)3

Worked Example

Using the example inputs above, the tool returns:

SDE

$260,000

Estimated value

$780,000

The Operator's Read

Buyers value small businesses on SDE, not net profit. At this multiple, roughly $780,000. Growing SDE or the multiple (recurring revenue, clean books) both raise the price.

Assumptions & Limitations

  • This is a single-point calculator — it answers one question at a time. For a full time-based projection, use the matching Toolkit Pro simulator.
  • Defaults are illustrative. Replace them with your real numbers before relying on the result.
  • Educational tool only — not financial, investment, tax, or legal advice.

Frequently Asked Questions

What does the Business Value (SDE) Estimator calculate?

Add back owner salary and one-time expenses to net profit for Seller’s Discretionary Earnings, then apply a typical multiple. It takes 4 inputs — Net profit, Owner salary add-back, Other add-backs, Multiple (SDE) — and returns SDE, Estimated value.

How do I use the Business Value (SDE) Estimator?

Enter your figures in the fields above and the result updates instantly. No signup, no limits, and nothing leaves your browser — the math runs on your device.

Is the Business Value (SDE) Estimator free?

Yes, completely free. For the full time-based simulation — projection tables, scenarios, Excel/PDF export, and AI analysis — see the matching Toolkit Pro simulator.

Who built this tool?

The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. It uses the exact method they'd apply in an engagement.

Is this financial advice?

No. The Business Value (SDE) Estimator is an educational tool for directional planning — not financial, investment, tax, or legal advice.

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The Crimson Bench · Est. 2002 · Founded in New York City

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