You can ask any number you want — but the business sells for what a buyer will pay, and on a Main Street deal that’s capped by what the buyer’s lender will finance. Three things, all from your own numbers, decide it.
What it really earns — the recast
Buyers pay a multiple of earnings, and your tax return understates earnings on purpose. A recast (normalization) adds back owner pay, perks, retirement, non-working family on payroll, and one-time costs to show the true owner benefit — documented so it survives the buyer’s quality-of-earnings review. A defensible recast is the single biggest lever on your price.
What that’s worth — the multiple
Small businesses trade on a multiple of earnings: roughly 2–3.5× SDE for owner-operated Main Street businesses, and 4–6× EBITDA — sometimes much more — as you move up in size and quality. Multiples also vary widely by industry. Where you land within a range is set by your value-drivers, so two similar businesses can sell a full turn apart.
Price is not net
The number that matters isn’t the headline price — it’s what you net after debt, broker fees (often 8–10%), advisory fees, and tax. A $1.2M price can leave wildly different amounts in your pocket depending on debt and how the deal is structured and taxed. Know the rough net, not the rough price.
Start free: the Seller’s Readiness toolkit
The “Are You Ready to Sell?” guide and the one-page Readiness Checklist — the worksheets that tell you whether you, and the business, are ready to sell well. Free, no signup.