One of the first questions business owners ask is: “What is my business actually worth?”
The answer is more nuanced than most expect—and it’s not just based on revenue.
Common Business Valuation Methods
Income-Based (Most Common)
Typically based on Seller’s Discretionary Earnings (SDE) or EBITDA multiplied by an industry multiple.
Market-Based
Compares your business to recent sales of similar businesses in Indiana or the Midwest.
Asset-Based
Focuses on the value of underlying assets—more common for asset-heavy businesses.
What Actually Drives Value
Buyers aren’t just buying numbers—they’re buying predictability and scalability.
Key drivers include: - Consistent, growing profitability - Clean, accrual-based financials - Low owner dependence - Recurring or contracted revenue - Strong margins
How to Increase Value Before Selling
If you’re 1–3 years out, you have time to improve value:
- Clean up and normalize financial statements
- Remove personal expenses from books
- Document systems and processes
- Build a management layer
- Improve customer diversification
Why Clean Financials Matter More Than You Think
Messy books don’t just slow deals—they reduce trust.
Buyers will either: - Lower their offer, or - Walk away entirely
Local Market Insights (Fort Wayne & Huntington)
We’re seeing strong demand for profitable small businesses in Northeast Indiana—but buyers are selective.
Well-prepared businesses command premium multiples.
Don’t Guess Your Value
Understanding your value is the first step—but improving it is where real opportunity lies.
Schedule a valuation and exit readiness consultation.
