Every Tech, Internet, Website and Digital business is different. Each business has hundreds of variables that differentiate it from others, and those variables can have wide varieties of impact on the potential selling price of that business. Because of this, no online valuation calculator could ever give an accurate depiction of what a company is worth. However, what this can do is give business owners a basic understanding of what to expect when they begin their conversations with our M&A firm. Our skilled brokers will dive deep into the company’s financials, find all relevant KPIs and Value Propositions, and ultimately find ways to maximize the sale of the business by making it the most attractive possible while at market.
The formula we use in this calculation is based on a Multiple of Earnings that is commonly used in valuing many tech companies. Our proprietary algorithm built into this calculator takes into account the world’s largest database of SMB, Lower Middle Market and Middle Market Deal Flow, and includes a blend of valuation methods, including Discounted Cash Flow, Future Maintainable Earnings, Relative, Historical Earnings, Asset Valuation, Comparable Company Analysis, Precedent Transaction Analysis and Straightline TTM Analysis. Our goal in creating this calculator was to provide business owners with a simple tool to help peg a value range for their business.
For a more personalized and in depth business valuation, which almost always results in higher value ranges than provided by this valuation tool (due to the fact that each business is unique and usually has its own value drivers), we provide a Free Business Valuation and Consultation with a Business Broker that is an expert in your particular business model.
See our Business Valuation Definitions for an explanation of the factors involved in this calculation.