Pricing Your Business for Sale

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

Build Your Pricing Approach

Start with current financial records, realistic market context, and the business's operating strengths and risks. Bizzy does not provide an active valuation tool, so consider using qualified professional advice when you need a formal valuation.

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