Sell your service business for what it’s worth
Most owners find out what the business is worth from a broker, after they have decided to sell, when it is too late to change the number. Do it the other way. An owner-dependent business trades near 1.65x SDE and an owner-light one near 3.5x, a $555,000 gap on a $300,000-SDE business. Know the number first, then close the gap on purpose.
86% of owners have no professional valuation or only a rough estimate.
The order that raises the number before you list
Six steps, in sequence. Each one lifts the multiple, and each is easier to prove in the books than to explain in the deal room.
Selling by trade
Nine trades, each selling on a different lever. Start with what yours is worth, then the steps to sell it.
Selling a service business: common questions
- How do I sell my service business?
- Start by knowing the number and what discounts it, then fix the discount before you list. The largest discount is owner-dependence: an owner-dependent business trades near 1.65x SDE and an owner-light one near 3.5x. Selling into that gap leaves the biggest money on the table, so close it first, then take the business to market.
- How do I get the most money when I sell my business?
- Get the business off yourself before you list. Documented operations, decisions that route to a manager, and relationships owned by the business are what move the multiple, and they are the same work that buys back your week now. The free diagnostic ranks which lever raises your number most.
- When should I start preparing to sell?
- Two to three years before you want out is the honest answer, because the value work takes time to show up in the books a buyer reads. The sooner you know the number and the discount, the more of the gap you can close. If you are closer than that, the diagnostic still tells you where you stand today.
Free in four minutes
Know your number before you list
Three scores, an estimated sale price, and the ranked list of what is discounting your value, so you fix it before a buyer finds it.
Get my scores freeFree in 4 minutes, no credit card. Add your email to see your scores and estimated sale price.