Question 1

How much is my business worth?

Accepted Answer

It depends on your earnings, your industry, and how a buyer sees the risk. Most small businesses sell for a multiple of EBITDA or seller's discretionary earnings, and that multiple moves with growth, margins, recurring revenue, customer concentration, and how dependent the business is on you. A DealCoach Estimate of Value gives you a real number for your specific business, prepared by an M&A analyst using current transaction data, instead of a generic rule of thumb.

Question 2

How is a business valued?

Accepted Answer

DealCoach values your business the way buyers actually price it. We normalize your financials to show true earnings, apply earnings multiples (EBITDA and seller's discretionary earnings) drawn from real M&A transactions in your industry, and adjust for growth, margins, recurring revenue, customer concentration, and owner dependence. The result is what your company would realistically sell for today, not a textbook formula or an online calculator.

Question 3

What is the difference between a business valuation and a business appraisal?

Accepted Answer

People use the terms interchangeably, but they serve different purposes. A formal business appraisal, or certified valuation, follows strict accreditation standards and is built for IRS filings, divorce, estate disputes, and other legal needs, which makes it slower and more expensive. A DealCoach business valuation is a market valuation: what your company would actually sell for to a real buyer today. It is the right tool for planning a sale, weighing an offer, or tracking value over time. If you need a number for a court or the IRS, you need a certified appraisal.

Question 4

What multiple will my business sell for?

Accepted Answer

There is no single multiple. Small businesses commonly sell for a multiple of EBITDA or seller's discretionary earnings, but the exact figure depends on your size, industry, growth, margins, recurring revenue, and risk. A larger, faster-growing business that does not depend on the owner earns a higher multiple than a small one that cannot run without you. An Estimate of Value pins down the multiple a buyer would actually apply to your business, instead of an industry average that may not fit.

Question 5

Is a business valued on revenue or profit?

Accepted Answer

Profit, not revenue. Buyers price most small businesses on earnings, usually a multiple of EBITDA or seller's discretionary earnings (SDE), not on top-line sales. Two companies with the same revenue can be worth very different amounts depending on how much they keep as profit and how dependable that profit is. Revenue sets the ceiling and signals scale, but buyers pay for sustainable earnings.

Question 6

How accurate are online business valuation calculators?

Accepted Answer

A free calculator gives a rough range from industry averages. It cannot see your real earnings after owner add-backs, your customer concentration, your margins versus peers, or how dependent the business is on you, which are exactly the factors that move the number for a real buyer. Use a calculator for a ballpark. Use a DealCoach Estimate of Value, prepared by an M&A analyst from your actual financials, when you need a number that holds up to buyer scrutiny.

Question 7

How can I increase the value of my business before I sell?

Accepted Answer

The biggest levers are reducing owner dependence, diversifying customer concentration, growing recurring or repeat revenue, improving margins, building a management team that can run without you, and keeping clean, defensible books. These can raise your multiple, not just your earnings. A Business and Market Analysis pinpoints the two or three levers that will move your number the most. The earlier you start, the more you can change before going to market.

Question 8

Is an EOV a real business valuation?

Accepted Answer

Yes. An EOV is a business valuation. The difference is purpose and format: an EOV answers what your company would likely sell for if you put it on the market right now, built around how buyers actually price companies. Certified valuations are formal products required for legal, tax, or compliance use, with stricter protocols that make them slower and more expensive.

Question 9

What is an Estimate of Value (EOV)?

Accepted Answer

An Estimate of Value is DealCoach's professional opinion of what your business would likely sell for in today's M&A market. It's built around how qualified buyers actually price companies right now, prepared by a real M&A analyst, grounded in current transaction data and buyer behavior.

Question 10

What is a Business and Market Analysis (BAMA)?

Accepted Answer

A BAMA includes everything in the EOV plus a salability assessment and industry benchmarking. You get eight value indicators, a comparison against privately held businesses that have sold in your industry, and a review of current M&A trends in your market. Most BAMA reports also include the top two or three action steps you can take to make your business more valuable and more sellable.

Question 11

What's the difference between an EOV and a BAMA?

Accepted Answer

An EOV tells you what your business is worth. A BAMA tells you what your business is worth and what to do about it. The EOV is the right starting point for most owners. The BAMA is the right choice if you're 12 to 36 months from selling, planning a transition, or want a clear action list for closing the gap.

Question 12

How is an EOV different from a certified valuation?

Accepted Answer

Certified valuations are designed for IRS filings, divorce proceedings, estate planning disputes, and other formal requirements. They follow strict accreditation standards, which makes them slower and more expensive. An EOV is built for real-world decision-making, grounded in current buyer behavior, recent transaction data, and what your company would actually command in today's market.

Question 13

Can my CPA give me a valuation?

Accepted Answer

Your CPA is essential, but most CPAs aren't trained in how buyers value companies in real M&A transactions. They know your books. They don't necessarily know market multiples, deal structures, buyer expectations, or customer concentration risk. An EOV is built around what buyers will actually pay.

Question 14

What information do you need to start an EOV?

Accepted Answer

At a minimum, we need four years of financial statements: P&L statements and balance sheets for the last four fiscal years, plus trailing twelve-month P&L and balance sheet in monthly columns. We may also ask for owner compensation details, customer concentration, management structure, and tax returns.

Question 15

How long does an EOV take?

Accepted Answer

Most EOVs are delivered within two to four weeks of receiving your financials. BAMA reports take longer because they include industry benchmarking and a salability assessment.

Question 16

Who prepares the valuation?

Accepted Answer

A real M&A analyst from the DealCoach team. Every EOV and BAMA gets human review. Nothing is auto-generated.

Question 17

Is the process confidential?

Accepted Answer

Yes. Your information is handled under strict confidentiality. No buyers are contacted as part of an EOV or BAMA. No data is shared. No competitors, employees, or customers will know you've done one.

Question 18

When should I get an EOV?

Accepted Answer

The best time is before you have to make a decision. Common situations include considering a sale in the next 12 to 36 months, evaluating an unsolicited offer, planning retirement or succession, benchmarking against industry peers, updating a buy-sell agreement, or tracking value over time.

Question 19

What's the next step after my EOV?

Accepted Answer

Once you understand your value, we align it with your goals and timeline. Some owners prepare for a sale, others enhance value first or explore a recapitalization. If you are over $5M in revenue and ready to take your business to market, our parent company Cornerstone Business Services runs the full M&A advisory process: multiple qualified buyers, controlled timeline, and protected leverage from start to close.

Question 20

How much does an EOV cost?

Accepted Answer

DealCoach EOVs start at $500. Pricing scales with the size and complexity of your business. Under $1M revenue: $500. $1M to $2.5M: $850. $2.5M to $5M: $2,000. Over $5M: $4,000.

Question 21

How much does a BAMA cost?

Accepted Answer

DealCoach BAMAs start at $950. Pricing scales with the size and complexity of your business. Under $1M revenue: $950. $1M to $2.5M: $1,250. $2.5M to $5M: $3,000. Over $5M: $5,000.

Question 22

Why does pricing scale with company size?

Accepted Answer

Larger businesses take more analyst hours. More years of historicals to normalize, more customer and vendor data to evaluate, multiple entities or business lines to consolidate, deeper working capital and inventory questions, and more sophisticated capital structures to model. We charge more for engagements that require more time to do correctly.

Question 23

Can I use an EOV for tax, legal, or IRS purposes?

Accepted Answer

No. EOVs and BAMAs are not certified appraisals and are not intended for IRS filings, divorce, estate disputes, or other legal use. If you need a valuation for one of those reasons, you need a certified valuation product.

Question 24

What revenue size do you work with?

Accepted Answer

DealCoach valuations are available for businesses of any size. Pricing scales with revenue. Whether your business does $300K or $30M, we can prepare a valuation that holds up to buyer scrutiny. Every valuation gets human analyst review.

Question 25

How do I get started?

Accepted Answer

Sign up at dealcoach.com/signup. You'll fill out a short questionnaire about your business, upload your financials, and a DealCoach analyst will reach out to confirm scope, pricing, and next steps. Or call (888) 326-2241 to talk to someone first.

Frequently Asked Questions

Business valuation basics

Process and Timing

When and Why

Pricing

Use Cases and Fit

Talk to a DealCoach analyst.