
Earnings basis
SDE is typical under ~$1M of earnings; EBITDA is used as deals get larger and add a management layer.
Earnings
Annual SDE
$
Industry
HVAC / Plumbing multiples
Low (3.00x)
owner-dependent, concentration risk
Mid (4.00x)
clean deal, no major red flags
High (5.50x)
recurring revenue, real management
Likely value (mid)
$2,000,000
at 4.00x SDE
Low valuation (3.00x)
$1,500,000
Mid estimate (4.00x)
$2,000,000
High valuation (5.50x)
$2,750,000
Range spread
The gap is the prize for de-risking the business.
$1,250,000
$1,500,000
$2,750,000
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These calculators are directional estimates for planning, not financial, legal, or tax advice. A real valuation or financing decision depends on your specific books, deal structure, and a lender or advisor's review.
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