re: Anyone Have Experience With Business Valuation?

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EBITDA x multiple

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Agree with both of the responses so far.

To expand on this, the difficult part is going to be finding a "true" EBITDA. That is going to take determining a "market" salary for yourself at the very least but probably need to adjust for some other things as well (reasonable office expense, tech expenses) that you don't account for because they are hidden costs (work from home, probably use a computer you already had, etc.) Then you apply the multiple to that number. The big one is going to be adjusting for a reasonable salary for yourself.

Ex: You bring in $350,000 in profit but don't pay yourself a salary (or don't pay yourself a fair salary). So you think 4X values the business at $1,400,000. In reality, the market pay for people to run the business may be $150,000. So you actually apply the 4X to $200,000 (300k-150k) and the business is worth $800,000.