Yes, this is a free business valuation calculator. It offers a free valuation report based on the information provided and high-level industry data. You also have the option to upgrade to a Premium or Pro Valuation.
Yes, the calculator uses revenue as one of the main inputs for valuation, asking for actuals and projections over several years. It also factors in industry M&A metrics and the key value drivers of your business.
The calculator lets you select between 13 different industries, with multiple sectors and sub-industries under each industry. You also have technology and software among these categories, making it a great SaaS valuation calculator.
The financials needed include revenue (actuals for the past three years and projected for the next year), EBITDA (actuals for the past three years and projected for the next year). Optionally, you can provide one-time expenses, such as CEO/Owner's salary, legal or tax expenses, and personal/family expenses for a more precise valuation ballpark.
You can modify 12 internal and 12 external factors using this exit calculator.
Internal factors include management team quality, reliance on the business owner, urgency for exit, and several others related to financial records, software sophistication, competitive advantage, etc.
External factors include growth opportunities, reliance on key suppliers, customer concentration, and more.
Many things can change a business's value, from its current state to the actual market mood and what’s happening in the industry.
When entering this process, look out for earnings and debt, as in how smoothly it has been running.
How about its assets? Is it well-equipped and reliable?
Does it have a stable cash flow to keep running smoothly?
Are similar businesses in high demand right now?
How likely is it to be worth more in the future?
Determining the right selling price for your business involves understanding its market value and considering the interest of potential buyers. Our ExitWise business valuation calculator can provide you with a valuation range based on thousands of private sales and deep industry insights, helping to give you a clear picture of what businesses like yours might be worth. However, it's important to remember that the final price of your business will ultimately depend on what a buyer is willing to offer.
Different types of buyers might value your business differently. Strategic buyers, for instance, often value businesses higher than institutional buyers because they are looking for synergies or assets that align with their existing operations, which could potentially yield greater returns for them. Therefore, they may be willing to pay a premium to acquire your company. Understanding these dynamics can help you set realistic expectations and strategize effectively when entering negotiations.
Valuing a business is a complex process that takes into account a variety of factors to determine its worth. At ExitWise, we utilize a sophisticated approach that considers financial performance, market conditions, industry trends, and comparable business sales. Our valuation tool leverages data from thousands of private sales and applies industry insights to provide a comprehensive valuation range.
To accurately assess the value of your business, we look at key financial metrics such as revenue, profit margins, and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). We also consider intangible assets like brand value, customer relationships, and market position. Our goal is to provide a detailed understanding of what your business could potentially be worth in the current market, helping you make informed decisions about selling or growing your business.