What is the difference between revenue multiple and EBITDA multiple?

Revenue multiple values a business based on top-line revenue - common for high-growth companies that may not yet be profitable. EBITDA multiple values based on earnings power - preferred for profitable, established businesses. Revenue multiples are typically lower (1-10x) than EBITDA multiples (3-15x) because they don't account for profitability. The right approach depends on your industry and business stage.

What multiple should I use for my business?

Research recent transactions of comparable businesses in your industry, size range, and geography. Small businesses (under $5M revenue) trade at 2-4x SDE. Growing tech companies at 4-10x ARR. Profitable service businesses at 4-8x EBITDA. If you don't have comparables, start conservative and adjust. A business broker or M&A advisor can provide specific guidance.

How does growth rate affect valuation?

Higher growth rates command higher multiples. A business growing 20%+ annually might trade at 1.5-2x the multiple of a flat-growth business. This calculator applies a growth premium factor (1.0x, 1.1x, or 1.2x) to the blended valuation based on growth rate thresholds. Investors pay more for growth because it signals future earning potential.

What is EBITDA and why does it matter for valuation?

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures operational profitability by excluding non-operating expenses and non-cash charges. Buyers care about EBITDA because it represents the true cash earnings available to a new owner - unaffected by capital structure, tax strategy, or accounting decisions.

How do I increase my business valuation?

Increase revenue and profitability (the two direct inputs), improve growth rate (by expanding market, launching products, or acquiring customers), reduce customer concentration risk, strengthen recurring revenue, build a management team that doesn't depend on you, clean up financial reporting, and establish documented processes and systems. Every point of EBITDA margin improvement directly increases value.

Should I sell my business based on revenue or EBITDA multiple?

Generally, sell on the metric that makes your business look best. High-growth but low-profit companies sell on revenue multiples. Highly profitable, steady companies sell on EBITDA multiples. Most buyers will want to use both and negotiate. This calculator's blended approach reflects typical deal negotiation - averaging both methods and adding a growth premium.

How do I find comparable business sale data?

BizBuySell (small businesses), PitchBook (private equity and VC deals), GF Data (mid-market M&A), and industry-specific M&A reports from investment banks. Trade associations often publish valuation surveys. For a quick estimate, search for 'valuation multiples [your industry] 2025' to find recent transaction data and published reports.

Does business valuation differ for an acquisition vs raising investment?

Yes. For acquisitions, buyers discount for risk and apply control premiums - they value what they can make from the business. For investment (minority stake), valuations are often higher because investors pay for growth potential and take less control. Strategic buyers (competitors) often pay 20-50% more than financial buyers (private equity) due to synergies.

企業価値評価計算機

収益倍率とEBITDA倍率を使用して企業価値を評価します。