Pricing Your Business for Sale

Setting the right asking price is one of the most important decisions when selling a business.

Get a Free Estimate First

Bizzy offers a free Business Valuation Tool that provides an instant estimate based on your revenue, profit, industry, and years in business. Use it as a starting point — you can even create a listing directly from your valuation results.

Factors That Influence Price

  • Revenue and profit — Consistent financial performance commands higher multiples
  • Industry trends — Growing industries typically sell at premium valuations
  • Location — Prime locations add significant value
  • Customer base — Diversified, recurring revenue is highly valued
  • Growth potential — Scalable businesses attract higher offers
  • Years in business — Established businesses with long track records command higher valuations

Common Valuation Methods

  1. Revenue multiple — Typically 1x–3x annual revenue for small businesses
  2. EBITDA multiple — Usually 2x–5x earnings before interest, taxes, depreciation, and amortization
  3. Asset-based — Value of tangible assets (equipment, inventory, real estate)

Tips for Pricing

  • Price competitively — overpriced listings get fewer inquiries and sit on the market longer
  • Be transparent about financials — buyers will verify your numbers during due diligence
  • Consider consulting a business broker or accountant for a professional valuation
  • Review comparable listings on the marketplace to see how similar businesses are priced