Value score.

A defensible pricing range for a seller meeting. Recast the earnings, score what actually drives the multiple, then check the number against what a bank will lend.

01 What it earns

Industry

Annual revenue

Net profit as reportedPre-tax$

Owner pay & payroll tax$

Owner perksHealth, auto, phone, travel$

Interest expense$

Depreciation & amortization$

One-time & non-recurringDocumented only$

Replace unpaid family laborOr a manager the buyer must hire$

Equipment & FF&E valueWhat it would actually sell for$

Inventory at costUsually added on top of the price$

SDE margin—

Tangible asset floorEquipment plus inventory—

SDE—

02 What moves the multiple

03 The range

Recommended asking price

—

Low —High —

Industry starting point—

Adjusted for size and quality—

Most likely sale priceWhat you'd expect it to actually close at—

Driver score—

04 Will a bank lend on it

Market salary for the buyerWhat it costs to replace the owner$

Working capital the buyer needs$

Closing costs and fees$

SBA rate%

TermYears

Coverage the lender wants1.25x is standard

Coverage at your asking price—

Buyer's cushion after debt and salary—

Highest financeable price—

05 What's costing them money

06 Saved valuations

What this is. A broker's opinion of value for pricing and listing conversations — not a certified appraisal, and not something to hand a court, the IRS, or a divorce attorney. The industry starting multiples are rules of thumb; if you subscribe to DealStats, BIZCOMPS, or the IBBA market pulse, override the starting point with real comps for the seller's SIC and revenue band. Every multiple here applies to SDE with inventory added on top, which is the main street convention. Above roughly $1M of SDE, buyers shift to EBITDA multiples and this framework starts to understate value.