NORMALIZE EARNINGS
| Net income (3-yr average) | $ ______________ |
| + Owner salary above market | $ ______________ |
| + One-time / personal expenses | $ ______________ |
| + Interest, depreciation, amortization | $ ______________ |
| = ADJUSTED EBITDA / SDE | $ ______________ |
PICK THE MULTIPLE (2–4× typical main street)
| Recurring revenue % ______ (higher = +) | $ ______________ |
| Owner-dependence (runs without you? + / −) | $ ______________ |
| Customer concentration (top client % = −) | $ ______________ |
| Growth trend 3 yrs (+ / −) | $ ______________ |
| CHOSEN MULTIPLE: ______× | $ ______________ |
VALUE
| EBITDA × multiple = Enterprise value | $ ______________ |
| + Cash retained | $ ______________ |
| − Debt assumed | $ ______________ |
| − Deferred capex needed | $ ______________ |
| = EQUITY VALUE ESTIMATE | $ ______________ |
SANITY CHECKS
| Value ÷ revenue = ______ (typical 0.3–1×) | $ ______________ |
| Could a buyer finance it at 1.25× DSCR? | $ ______________ |
| What did comparable businesses sell for? | $ ______________ |
Buyers pay for transferable profit. Every dollar of earnings that depends on you personally is discounted — often to zero.