Adjusted EBITDA calculator
Earnings restated at market terms, as a buyer’s review of earnings would.
REPORTED RESULTS
$
$
$
$
$
OWNER COMPENSATION
$
$
RELATED-PARTY RENT
$
$
OTHER NORMALIZATIONS
$
$
Adjusted EBITDA
$1,051,000
12.4% margin on revenue
- Reported EBITDA
- Normalizations added
Net income$610,000
Income tax, interest, depreciation and amortization$334,000
Reported EBITDA$944,000
Owner compensation above market$110,000
Related-party rent above market−$36,000
One-time and non-recurring expenses$45,000
Non-operating income−$12,000
Adjusted EBITDA$1,051,000
Pay or rent below market reduces adjusted EBITDA, because a buyer will pay the market rate after closing.
A buyer prices adjusted EBITDA against comparable transactions.Get your free valuation
Method and assumptions
An estimate for planning. A sale is priced and taxed on its own facts, confirmed by the seller’s advisors.
- 01EBITDA equals net income plus income tax expense, interest expense, and depreciation and amortization.
- 02Owner compensation is restated to the market cost of the roles the owners perform. Pay above market is added back and pay below market is deducted.
- 03Rent paid to a related party is restated to market rent on the same basis.
- 04One-time and non-recurring expenses are added back, and non-operating income is removed.
Free valuations from InvestDeal AI models trained for each industry
Get your free valuationYour financials
IndustryPrecision manufacturing
Revenue$7.2M
Adjusted earnings$1.45M
How buyers price it (three ways)
Revenue multiple0.6 – 0.9×
EBITDA multiple4.5 – 6.0×
Adjusted earnings multiple3.8 – 5.1×
$0.0M – $0.0M
$1.45M adjusted earnings at 3.8 – 5.1×, the multiple this profile earns
Two things would move it before you sell: your largest customer is 38% of revenue, and most of the business still runs through you
What comparable sales cleared at (28 in your sector and size)
Median 4.2×
You, 4.6×
Get an instant valuation based on your financials and comparable sales with our model
How InvestDeal compares with a traditional sale
TRADITIONAL PROCESS
InvestDeal
- Buyer matchesTRADITIONAL80% of businesses listed never sell50+Qualified buyer matches per business, on average
- Time to interestTRADITIONAL9 to 12 months from listing to close30 daysTo initial buyer interest
- FeesTRADITIONAL6%+ success fee, plus upfront fees or a retainerSuccess fee only$0 upfront, no retainer
- Buyer reachTRADITIONALLimited to one broker’s personal networkPlatform-wide matchingAcross active buyer demand
- ValuationTRADITIONALAsking price set by rule of thumbAI valuation modelsTrained for each industry, free for every owner
Speak with an advisor
Book a free call to discuss your company, likely buyers and how a sale would work.
Your advisor
WHAT YOU’LL GET
01. An initial value range
An estimate of what your business could sell for
02. Likely buyers
Which strategic and financial buyers may be interested
03. The sale process
Timing, next steps and what a sale involves
No upfront fees or retainer. Success fee only.
Frequently asked questions
Start preparing your sale
