Business Valuation Self-Assessment Worksheet

What’s Your Business Really Worth?

A practical tool to help business owners understand how professional buyers evaluate company value and identify areas that drive premium valuations.

Before You Begin

This worksheet helps you think like a buyer about your business value. The goal isn’t to provide a precise valuation (that requires professional analysis), but to help you understand:

• • How buyers actually evaluate businesses

• • Where your company stands today

• • What improvements could drive higher valuations

• • When professional valuation makes sense

Remember: Professional buyers evaluate risk as much as opportunity. Be honest in your assessment.

Part 1: Basic Business Information

Annual Revenue (most recent 12 months): $_____________

Annual EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization): $_____________

Industry: ________________________________

Years in business: _________ Years under current ownership: _________

Primary business model: ☐ Product sales ☐ Service delivery ☐ Subscription/recurring ☐ Manufacturing ☐ Distribution ☐ Other: _________

Part 2: Initial Valuation Expectations

What do you think your business is worth today? $_____________

What multiple of revenue does this represent? _______ x (Divide your estimated value by annual revenue)

What multiple of EBITDA does this represent? _______ x (Divide your estimated value by annual EBITDA)

What’s this estimate based on? ☐ Comparable sales you’ve heard about ☐ Industry rules of thumb ☐ Asset value ☐ Revenue multiples ☐ Professional valuation ☐ Gut feeling ☐ Other: _________________

Part 3: Core Valuation Assessment (100 points total)

Financial Performance (25 points)

Revenue Growth Trend

• • Declining or flat: 1 point

• • Modest growth (5-15% annually): 3 points

• • Strong growth (15%+ annually): 5 points

Revenue Predictability

• • Project-based or seasonal: 1 point

• • Repeat customers but irregular timing: 3 points

• • Recurring/contractual revenue: 5 points

Customer Concentration

• • Largest customer >25% of revenue: 1 point

• • Largest customer 15-25% of revenue: 3 points

• • No customer >15% of revenue: 5 points

Profitability & Margins

• • Declining margins: 1 point

• • Stable margins: 3 points

• • Improving margins: 5 points

Financial Documentation

• • Basic bookkeeping only: 1 point

• • Regular financial statements: 3 points

• • Audited or reviewed statements: 5 points

Financial Performance Score: ___/25

Operational Independence (25 points)

Owner Dependency in Operations

• • Business stops without owner daily involvement: 1 point

• • Significant disruption without owner: 3 points

• • Operates smoothly without owner for weeks: 5 points

Management Team Depth

• • No clear second-in-command: 1 point

• • One potential successor identified: 3 points

• • Multiple capable leaders ready: 5 points

Customer Relationship Management

• • Most customers know only owner: 1 point

• • Mixed owner/employee relationships: 3 points

• • Employees manage key relationships: 5 points

Process Documentation & Systems

• • Critical knowledge only with owner: 1 point

• • Some processes documented: 3 points

• • Comprehensive systems and procedures: 5 points

Employee Retention & Stability

• • High turnover, retention issues: 1 point

• • Average retention: 3 points

• • Low turnover, engaged workforce: 5 points

Operational Independence Score: ___/25

Market Position & Competitive Advantage (25 points)

Competitive Differentiation

• • Commoditized service/product: 1 point

• • Some differentiation: 3 points

• • Clear competitive moats: 5 points

Market Position & Industry Outlook

• • Follower in declining market: 1 point

• • Participant in stable market: 3 points

• • Leader in growing market: 5 points

Scalability & Growth Potential

• • Owner-dependent, hard to scale: 1 point

• • Some systems, moderate scalability: 3 points

• • Systematic, highly scalable: 5 points

Technology & Innovation Position

• • Technology threatens business model: 1 point

• • Technology neutral: 3 points

• • Technology enhances/enables business: 5 points

Geographic & Market Reach

• • Limited local market: 1 point

• • Regional presence: 3 points

• • National/multi-market presence: 5 points

Market Position Score: ___/25

Business Size & Strategic Value (25 points)

Business Size (Annual Revenue)

• • Under $1M: 1 point

• • $1M-$5M: 2 points

• • $5M-$10M: 3 points

• • $10M-$25M: 4 points

• • Over $25M: 5 points

Strategic Buyer Appeal

• • Limited strategic value to others: 1 point

• • Some synergy potential: 3 points

• • High strategic value (market access, capabilities, scale): 5 points

Acquisition Platform Potential

• • Standalone business only: 1 point

• • Some add-on potential: 3 points

• • Strong platform for additional acquisitions: 5 points

Regulatory & Compliance Position

• • Complex regulatory challenges: 1 point

• • Standard industry compliance: 3 points

• • Favorable regulatory position: 5 points

Asset Base & Infrastructure

• • Minimal tangible assets: 1 point

• • Adequate facilities/equipment: 3 points

• • Significant strategic assets (real estate, equipment, IP): 5 points

Size & Strategic Value Score: ___/25

Part 4: Valuation Reality Check

Total Assessment Score

Financial Performance Score: ___/25
Operational Independence Score: ___/25
Market Position Score: ___/25
Size & Strategic Value Score: ___/25

Total Score: ___/100

Score Interpretation

80-100 points: Premium Valuation Potential Your business demonstrates characteristics that drive premium valuations. Professional buyers will likely offer multiples at the high end of industry ranges.

60-79 points: Market Valuation Range Your business should receive market-rate valuations. Focus on addressing lower-scoring areas to move toward premium range.

40-59 points: Below-Market Valuation Significant improvements needed before pursuing sale or seeking investment. Consider 12-24 months of focused development.

Below 40 points: Substantial Work Required Your business needs fundamental improvements in operations, management, or market position before considering external transactions.

Part 5: Industry Multiple Reality Check

Typical Industry Valuation Ranges (EBITDA multiples)

Select your industry:

Professional Services (2-5x EBITDA)

• • Law firms, accounting, consulting, marketing agencies

• • Higher multiples for recurring clients and scalable models

Technology/Software (4-12x EBITDA)

• • Wide range based on growth, recurring revenue, and scalability

• • SaaS models typically command highest multiples

Manufacturing (3-6x EBITDA)

• • Depends on margins, customer relationships, and market position

• • Specialized manufacturing can achieve higher multiples

Distribution/Wholesale (2-4x EBITDA)

• • Margins and supplier relationships drive value

• • Geographic coverage and customer loyalty matter

Healthcare Services (4-8x EBITDA)

• • Regulatory compliance and payor relationships critical

• • Recurring revenue models valued highly

Retail/Consumer (1-4x EBITDA)

• • Location, brand strength, and same-store sales growth

• • E-commerce capabilities increasingly important

Construction/Trades (2-4x EBITDA)

• • Recurring customers and geographic market share

• • Licensing and reputation in local markets

Food & Beverage (3-6x EBITDA)

• • Brand strength, distribution, and growth potential

• • Regulatory compliance and supply chain stability

Your Industry Multiple Range: _____ to _____ x EBITDA

Part 6: Valuation Calculation

Conservative Valuation Estimate

Your Annual EBITDA: $_____________

Low End Industry Multiple: _____ x

Conservative Estimate: $_____________ (EBITDA x Low Multiple)

Optimistic Valuation Estimate

High End Industry Multiple: _____ x

Optimistic Estimate: $_____________ (EBITDA x High Multiple)

Assessment-Adjusted Estimate

Based on your total assessment score, adjust your industry multiple:

Score 80-100: Use high end of industry range or above
Score 60-79: Use middle of industry range
Score 40-59: Use low end of industry range
Score below 40: Use below industry range

Assessment-Adjusted Valuation: $_____________

Part 7: Reality Check Questions

Compare your assessment-adjusted valuation to your initial estimate:

Initial Estimate: $_____________
Assessment-Adjusted Estimate: $_____________
Difference: $_____________ (Higher/Lower)

Reflection Questions:

If your assessment is significantly lower than your initial estimate:

• • What specific factors are reducing your business value?

• • Which areas could you improve over the next 12-24 months?

• • What would it cost to address these issues vs. the potential value increase?

If your assessment is higher than expected:

• • Are you being realistic about your business challenges?

• • Have you considered how a buyer would view operational risks?

• • What could threaten this value over the next 2-3 years?

Part 8: Value Enhancement Priorities

Based on your assessment, rank these priorities (1-5, with 1 being most important):

Financial Improvements:

• • Improve profit margins and cash flow consistency ___

• • Diversify customer base to reduce concentration ___

• • Implement better financial reporting and controls ___

• • Document and improve key business metrics ___

Operational Improvements:

• • Reduce owner dependency in daily operations ___

• • Develop management team depth and capabilities ___

• • Document processes and standard procedures ___

• • Improve employee retention and engagement ___

Strategic Improvements:

• • Strengthen competitive position and differentiation ___

• • Develop recurring revenue or predictable income streams ___

• • Invest in technology and scalable systems ___

• • Build strategic partnerships or market relationships ___

Growth & Scale:

• • Expand geographic reach or market presence ___

• • Develop acquisition platform capabilities ___

• • Build strategic assets (IP, real estate, equipment) ___

• • Enhance strategic buyer appeal and synergy potential ___

Part 9: Professional Guidance Recommendations

When to Seek Professional Valuation:

Immediate Professional Valuation Recommended If:

• • Considering sale or major transaction within 24 months

• • Significant shareholders or family succession planning

• • Estate planning or tax strategy development

• • Divorce, partnership disputes, or legal requirements

• • Major strategic decisions requiring valuation input

Annual Valuation Monitoring Recommended If:

• • Business value >$5M and growth planning active

• • Management buyout or succession planning underway

• • Private equity or outside investment being considered

• • Board governance or outside advisory input needed

Types of Professional Support Needed:

Based on your assessment score:

Score 80-100: Ready for transaction-level valuation and advisory support
Score 60-79: Prioritize business assessment and value enhancement planning
Score 40-59: Focus on operational improvement and management development

Score below 40: Implement business fundamentals and strategic planning

Next Steps Recommendations:

Immediate (Next 30 days):

• • Share results with key advisors (accountant, lawyer, consultant)

• • Prioritize top 3 value enhancement opportunities

• • Research professional service providers if needed

• • Set 90-day goals for highest-impact improvements

Short-term (3-6 months):

• • Implement priority improvements identified

• • Reassess using this worksheet to measure progress

• • Engage professional advisors for major gaps

• • Begin planning for next phase of value enhancement

Long-term (6-24 months):

• • Complete systematic value enhancement program

• • Prepare for professional valuation if considering transaction

• • Develop comprehensive exit or growth strategy

• • Build advisory relationships for ongoing guidance

Important Disclaimers

This worksheet provides educational guidance only and does not constitute a professional business valuation. Actual business value depends on numerous factors including:

• • Market conditions and timing

• • Specific buyer motivations and synergies

• • Transaction structure and terms

• • Due diligence findings

• • Negotiation dynamics

Professional valuations require: Detailed financial analysis, market research, comparable transaction analysis, and industry expertise that this worksheet cannot provide.

Use this assessment to: Understand valuation drivers, identify improvement opportunities, and determine when professional guidance makes sense.

Ready to Talk About Your Business and Options?