A quick, honest explanation of how we approach pricing a business — not a substitute for an actual valuation, just the thinking behind one.

The starting point: a multiple of earnings

Most small businesses are priced as a multiple of what the owner actually takes home each year — profit plus any owner’s salary and personal expenses run through the business, sometimes called seller’s discretionary earnings. A stable, well-run business typically sells for somewhere in the range of 2-4x that figure, though the right multiple depends heavily on the type of business, how long it’s been running, and how much of its success depends on the current owner personally.

What moves the number

• Lease stability. A long, transferable lease on reasonable terms is worth real money; a lease that’s about to expire is a real risk, and priced as one.
• Trend. A business that’s growing, flat, or seasonal gets valued differently, even at the same current profit.
• Owner dependency. A business that runs fine without the owner behind the counter every day is worth more than one that doesn’t.
• Assets included. Equipment, fit-out, stock, and any goodwill built into the brand or location all factor in separately from the earnings multiple.

Why we don’t quote a fixed multiple

Every business is different enough that a single rule of thumb would be more misleading than useful. This page is general information, not a formal appraisal or financial advice — the real answer starts with an actual conversation about your specific business.