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What is my business worth?
Five quick numbers and you'll see what a buyer might pay for your South African business — worked out the way buyers actually do it.
- 1Your numbers
- 2
- 3
Start with the basics.
Rough numbers are fine. Nothing to upload.
Your turnover, before any costs
Before tax and interest
Put a minus in front if sales went down
Private. Never shown to buyers.
How the calculator thinks
Years of profit, adjusted for risk.
Buyers ask one question: how many years of today's profit am I willing to pay up front? The answer starts with your industry and moves with how safe and how fast-growing your profit looks.
Where buyers start, by industry
Years of yearly profit, before adjustments.
| Industry | Starting point |
|---|---|
| Software & tech | 6.5× |
| Healthcare | 5.5× |
| Financial services | 5.0× |
| Manufacturing | 4.5× |
| Professional services | 4.5× |
| Logistics & transport | 4.0× |
| Wholesale & distribution | 4.0× |
| Farming & food processing | 4.0× |
| Construction & trades | 3.5× |
| Hospitality & tourism | 3.5× |
| Retail shops | 3.0× |
What moves the number
Typical effect on the years of profit a buyer pays.
- Most income comes back every month+25%
- Sales growing 20%+ a year+25%
- Customers on two-year-plus contracts+15%
- Runs a month without you+10%
- Sales shrinking−20%
- Needs you every single day−20%
- One customer is more than half of sales−30%
Questions
About your valuation.
How is a small business valued in South Africa?
Most owner-run businesses are priced as a number of years of profit. A buyer starts with what's normal for your industry, then pays more for growth, repeat income and a team that runs without you — and less if one customer or the owner holds everything together.
What profit number should I type in?
Last year's profit before tax and interest. If your own salary or personal costs run through the business, the calculator lets you say so in the optional questions — a buyer won't carry those costs, so they get added back.
Does the result include my building, cash or loans?
No. It values the trading business itself. Property you own, spare cash in the bank and any loans are added or deducted separately to work out what you walk away with.
How accurate is the calculator?
It gives you an honest starting range, worked out the way a buyer would start. Answer the seven optional questions and the range narrows. A full valuation uses your actual financial statements.
What if my business made a loss last year?
Then the calculator values it on sales instead of profit, which is how buyers look at businesses that are growing fast or recovering. Expect a wider range.
Got your number? See how sellable you are.
The Sale-Ready Score shows how a buyer will judge your business, in about five minutes.