Valuation is part math, part judgment about risk. These answers cover the basics. If you’re a South Carolina owner and want a buyer’s honest perspective, start a confidential conversation.
Straight answers
How is a small business valued?
Mostly on reliable earnings adjusted for risk and transferability, checked against comparable sales and asset values. See how to value a small business.
What is SDE?
Seller’s discretionary earnings — the total benefit to one owner-operator. See seller’s discretionary earnings.
SDE or EBITDA — which applies to me?
SDE for smaller owner-operated businesses; adjusted EBITDA when management runs the business. See EBITDA for small business.
What multiple will my business sell for?
It depends on size, industry, risk, growth and market conditions; an advisor with current data can give a range. This site doesn’t publish multiples.
Can I count cash income that isn't on my books?
No. Buyers and lenders can’t rely on unreported income, and claiming it creates legal problems.
How do I increase my business's value?
Owner independence, recurring revenue, clean books, a strong team and systems. See what increases business value.
Do I need a formal appraisal?
Sometimes — for SBA loans, partner buyouts, estates or disputes. For planning, a working range from an experienced advisor may be enough.
Does Ben Lovro value businesses?
He doesn’t do valuations for a fee; as a buyer he can share how he’d look at a business.