Entrepreneur · Free Interactive Tool
Business Value (SDE) Estimator
A quick, buyer-style valuation of a small business.
Your Numbers
The Result
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.
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.
| Input | Example 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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