This image breaks down simple “rules of thumb” for valuing small to mid-sized businesses by industry. It’s a cheat sheet for quick calculations when you’re eyeing a potential buy or want to see what your business might fetch. These rough multiples aren’t perfect, but they give a ballpark number fast.
How to Use This
These rules of thumb are a starting point, not gospel. Use them to sanity-check a seller’s asking price or to benchmark your own business performance. Then back it up with a full financial analysis and professional valuation.
Key Insights from These Valuations
- Service-heavy businesses like pest control, funeral homes, and manufacturing often value at 3-5 times EBITDA or net — dependably profitable, low glamour, steady returns.
- Retail-based models like card stores and dry cleaners lean on revenue percentages since profits are unpredictable.
- Convenience and liquor stores get unique treatment — driven by daily or weekly cash flow and inventory levels.
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