Choosing an advisor
How much could I realistically sell my company for today?
A step-by-step way to estimate what your company would realistically sell for now, and how much of it you would take home.
By Michael D. Rubin, CEO & Founder · September 2026 · 797 words
For a profitable company with $3 million to $100 million in revenue, a realistic price today is most often three to seven times adjusted EBITDA, and where you land in that range depends on risk: how predictable your earnings are, how much the business depends on you, and how concentrated your customers are. What you take home will be lower than the headline price once debt, fees, taxes and deal terms are accounted for.
Here is how to work out a realistic range yourself, and where a do-it-yourself estimate tends to go wrong.
Step 1: Find your adjusted EBITDA
EBITDA is earnings before interest, taxes, depreciation and amortization. Buyers adjust it to show what the company would earn under a new owner. Start with net profit and add back interest, taxes, depreciation and amortization. Then add back personal expenses run through the company, one-time costs such as a lawsuit or a move, and the difference between what you pay yourself and what a hired manager would cost.
Be conservative. Every add-back will be questioned, and if you cannot document it, a buyer will not count it. Use the last full year and the most recent twelve months, and notice whether the trend is up or down, because buyers will. A realistic figure is one a buyer's accountant would reach too.
Step 2: Apply a realistic multiple
The table shows the arithmetic at three points in the range. These figures are illustrations, not a promise. A company moves toward the top with steady growth, recurring or repeat revenue, a management team that runs the business, a broad customer base and clean records. It moves toward the bottom with declining sales, heavy owner dependence, one dominant customer or messy books. Some companies fall outside the range altogether.
Two companies with the same EBITDA can sell at very different multiples. A buyer paying five times is betting that your earnings will hold and grow; a buyer paying three times is pricing in doubts. The work before a sale is removing as many of those doubts as you can.
| Adjusted EBITDA | At 3x | At 5x | At 7x |
|---|---|---|---|
| $1,000,000 | $3,000,000 | $5,000,000 | $7,000,000 |
| $2,000,000 | $6,000,000 | $10,000,000 | $14,000,000 |
| $5,000,000 | $15,000,000 | $25,000,000 | $35,000,000 |
Step 3: Adjust for what comes with the company
Many transactions at this size are priced cash-free and debt-free: you keep the company's cash and pay off its debt at closing. You are also expected to leave a normal level of working capital (receivables and inventory, minus payables) in the business. That level, called the working capital peg, is negotiated, and any shortfall at closing comes out of your price.
Real estate is usually handled separately. If you own the building, it can be sold with the company or leased to the buyer, and each route changes the numbers.
Watch for debt-like items as well. Customer deposits, unpaid taxes, accrued bonuses or deferred equipment repairs can be treated as debt and deducted from the price, so ask your advisor to flag them before a buyer does.
Step 4: Look at what you would actually keep
The headline price and the money in your account are different figures. The gap comes from four places:
- Structure. Part of the price may be paid later through an earnout (payments tied to future results) or a seller note (a loan you make to the buyer). Cash at closing is worth more than a promise.
- Escrow. Part of the price may be held back for a period to cover claims under the purchase agreement.
- Fees. Advisor, attorney and accounting fees.
- Taxes. Whether the deal is an asset sale or a stock sale, and how the price is allocated, change your tax bill. Your CPA should model this before you accept an offer.
Why online calculators and rules of thumb miss
A calculator cannot see your customer contracts, your team or the two or three buyers who might want your company for strategic reasons. Rules of thumb lump very different businesses together. And the market decides the final number: the same company can sell for different prices depending on how many qualified buyers compete at the same time.
Our long read on what your business is worth covers the value drivers in more depth. If the real question is whether now is the moment, see when is the right time to sell your business.
How we give you a realistic number
MDR & Associates offers a free, confidential discovery meeting that ends with an opinion of value, a low-to-high range based on three years of your financials rather than a formula. If you need a formal third-party valuation for a partner, lender or estate matter, that is a separate business valuation service with its own price. For a first range in a few minutes, try the valuation snapshot.
Where this fitsTexas M&A advisors and business brokers →