Business
How to Price a Business for Sale in 7 Steps (2026 Guide)
Quick Answer: To price a business for sale, start by normalizing three years of financials to show true owner earnings, then calculate your Seller's Discretionary Earnings (SDE) for a small business or EBITDA for a larger one. Apply a market multiple from recent comparable sales, typically 2 to 3.5 times SDE for most small businesses or 4 to 6 times EBITDA for companies earning over $1 million, then adjust up or down for risk factors such as owner dependence and customer concentration. Set an asking price about 10 to 15 percent above your target, decide which assets and working capital are included, and plan the deal structure before you list.