How EBB Determines a Business' Worth

Valuing a business is not an exact science. There is no right way to determine price, as there are many methods of doing so. Many factors play into value – the economy, management, location, cash flow, lease, etc.

EBB uses a multiple of the seller’s discretionary cash (SDC) to determine a business’ worth in the marketplace. Because each business has a different model and set of circumstances, we believe the SDC model rewards business with higher profits.

While multiples vary from industry to industry, they generally fall into the 1X – 4X the Sellers Discretionary Cash (SDC) plus the depreciated value of the fixtures and equipment and the wholesale value of the saleable inventory.

Ask EBB to help you determine the value of your business.