Weld Valuations

Introduction

Business Value Assessment

This assessment helps you estimate the market value of your business using your own financial inputs. It follows the typical framework buyers use for owner-operated businesses under $5 million in revenue, focusing on owner cash flow and the risk and transferability of that cash flow.

‍In simple terms:

Owner Cash Flow x Confidence Score = Estimated Business Value
This tool will help you understand and develop estimates for owner cash flow and the confidence score. It provides a practical estimate of business value based on your inputs and observed private-market transaction ranges.

Get Started

Business Owner Contact Information

Tell Us About Yourself

Business Owner First Name*

Business Owner Last Name*

Business Owner Email*

Business Name*

Business Website

Year Established*

Annual Revenue*

Industry*

By clicking Next, you acknowledge that this tool is not financial, legal, investment, tax, or regulatory advice. You understands that results are not a guarantee of the value of the business or what it would be sold for in an actual transaction. This output is not a 409A valuation. Weld disclaims all representations and warranties in connection with this tool's output.

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Understanding Seller's Discretionary Earnings (SDE) ?

Let's calculate your SDE using your most recent full-year tax return or P&L statement.

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CALCULATE YOUR SDE ?

Owner cash flow is calculated on an annual basis. Please ensure all values entered reflect the same 12-month period.
‍
If you’re using your tax return, the full - calendar year will typically be the most accurate reference. If you update financials monthly, you can instead use a trailing twelve months (TTM) ? profit and loss (P&L) statement from your most recent financials.

1

Start with Net Profit

Net profit is the money remaining after all business expenses are paid. On tax returns, it is typically reported as net income ?.

Net Profit*

2

Add Back Owner Benefits

These line items are what are commonly referred to as "add backs". Add backs are owner-specific expenses that a new buyer would not incur. They're added back to net profit to reflect the full economic benefit of owning the business.

In some cases, an adjustment may need to be subtracted instead. For example, if the owner currently owns the real estate and does not charge the business market rent, a reasonable rent expense may need to be deducted to reflect the true operating cost a new owner would likely incur.

Owner salary or draws

Owner payroll taxes

Owner health insurance

Owner retirement contributions

Personal or discretionary expenses run through business

One-time or unusual expenses

Other Adjustment

3

Add Back Non-Operating Expenses

If deducted from your earnings, add back interest expense, company income taxes, and depreciation & amortization (D&A).

Interest expense

Income tax expense

Depreciation & amortization

Estimated SDE

$0

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How the Multiple Is Determined

The multiple ? (2×, 3×, 4×, etc.) that SDE is multiplied by is mainly driven by business risk ? and transferability ?. Risk and transferability depend on things like:
‍
• Customer concentration
• How dependent the business is on the owner
• Growth history
• Industry demand
But at its core, valuation for small businesses is usually:

Cash to owner × Confidence Score = Estimated Business Value

Commonly referred to by buyers and valuators as

SDE x Multiple = Estimated Business Value

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Estimated Multiple

Based on the most recent transaction data for profitable, privately held U.S. businesses with under $5M in revenue, valuation multiples for Landscape & Lawn Care businesses are distributed as follows:

Sale Price / SDE

Upper Quartile

-×

Median

-×

Lower Quartile

-×

Based on your scorecard selections, your business likely fits:

Lower end of range (higher transition risk)

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-

Based on the inputs you provided, your business generates about $XX in annual owner cash flow (SDE). Similar businesses have sold for around -x this cash flow, based on recent private-market transactions. Using that benchmark, your estimated business value is approximately -.

Your SDE

Not entered

Owner Cash Flow

× Median Multiple for -

-×

Confidence Score

ESTIMATED BUSINESS VALUE

-

Think of this as a starting point for planning.

Quick check

How does the estimated value of your business feel?

There's no wrong answer — this helps your advisor know where to focus.

↑ Higher than I expected= Feels in range↓ Lower than I expected

Disclaimer: This assessment provides a practical estimate based on owner-provided inputs and observed private-market transaction ranges. It is intended for planning and perspective only — not as a formal appraisal or guarantee of price. Actual outcomes depend on buyer demand, deal structure, business performance, and economic conditions. This is not a 409A valuation.

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Steps to Increase Business Value

Based on the information provided, your business appears to be above average in reducing risk and improving transferability. Notable strengths include:

✓

Consistent and stable profitability

✓

Meaningful recurring revenue

✓

A diversified customer base

✓

Reduced dependence on the owner’s day-to-day involvement

✓

Clean, well-organized financial reporting

These characteristics are often associated with stronger buyer confidence and more favorable valuation outcomes.

Note: This assessment looks only at 12 months of business performance. Buyers and lenders typically expect to see at least three years of operating and financial history when evaluating a business, as consistency over time materially impacts both valuation and financing options.

Strategic Considerations

Steps to Increase Business Value

Owners who are years away from a potential exit can take deliberate steps to increase business value before going to market. Improvements in the areas below often lead to stronger buyer interest and, in many cases, higher potential offer prices.

↑

Improving profit consistency and margin stability

↑

Increasing recurring or contracted revenue

↑

Further diversifying the customer base

↑

Reducing day-to-day owner dependence and strengthening second-layer management

↑

Maintaining clean, accurate, and well-organized financial records

In comparable transactions, businesses with lower transition risk have been observed to trade at SDE valuation multiples approximately 0.5×–1.0× higher, depending on industry and overall stability. Actual outcomes vary based on market conditions, deal structure, and buyer demand at the time of sale.

Note: This assessment looks only at 12 months of business performance. Buyers and lenders typically expect to see at least three years of operating and financial history when evaluating a business, as consistency over time materially impacts both valuation and financing options.

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Business Value by Multiple
(assuming SDE = -)

A business with the same SDE can sell for over $1M more, depending on how buyers perceive its risk, consistency, and transferability.

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Next steps

Your Path Forward

This estimate is a helpful starting point, but it's based on limited information. Financial adjustments, risk, and market comparables deserve a closer look.

Weld has an analyst prepared report for wherever you are — from early planning to a live transaction.

Horizon

Planning Ahead

For owners exploring growth, succession, or long-term exit planning. Educational valuation overview with key value drivers and improvement opportunities.

$800 Flat rate

Book a Call

Benchmark

Preparing for Sale

Market-based valuation designed to support sale preparation and advisor conversations.

$1,200 Flat rate

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Extended

Ready for Transaction

For acquisitions, partner buyouts, equity discussions, and strategic decisions. Comprehensive valuation with income modeling and deeper financial analysis.

From $1,600

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