Free Tool

Free Business Value Estimator

Thinking of selling or just curious? Get a rough estimate of what your business might be worth in minutes.

Stop Guessing Your Value

I've been in the accounting industry since 2008, and I’ve noticed a dangerous trend. Business owners often have no idea what their company is actually worth.

I see people selling their life's work for peanuts because they undervalue it. On the flip side, I see owners disappointed when they can't get the millions they "thought out around a braai fire on a Saturday night."

Don't rely on braai-side guesses. Use the tool on the right to get a realistic baseline.

How to Increase Your Value

Valuation isn't fixed. You can "engineer" a higher price before you sell by focusing on these key drivers:

  • Reduce Owner Reliance: If the business stops when you go on holiday, it's worth less. Build systems so it runs without you.
  • Recurring Revenue: Contracts and subscriptions (annuity income) are worth 2x-3x more than "one-off" project sales.
  • Clean Financials: Audited or independently reviewed financial statements create trust. "Shoebox receipts" destroy value.
  • Customer Spread: Don't rely on one big client for 50% of your income. That is a massive risk to a buyer.

Don't like your current number?

Get a baseline valuation today, then engage with us for Business Coaching. We will help you improve these key areas over 12 months to drastically increase your selling price.

Book a Value-Growth Strategy Session

The Science of Valuation

In the professional world, there are 5 recognized methods to value a company. Which one you use depends on the size and type of your business:

The "Big 5" Valuation Methods:
  1. Discounted Cash Flow (DCF): Projecting future cash flows 5 years out and discounting them to today's value. (Best for complex/stable firms).
  2. Capitalization of Earnings: Using a single year's earnings divided by a capitalization rate.
  3. Market Multiples: Comparing your business to similar ones sold recently (e.g., "Sold for 3x Profit").
  4. Net Asset Value (NAV): The raw value of your tangible assets minus liabilities.
  5. Liquidation Value: The "Fire Sale" price if you had to close doors and sell assets tomorrow.

How This Calculator Works

To keep this online tool fast and free, we focus on the three methods most relevant to small South African businesses (SMEs):

We use Seller's Discretionary Earnings (SDE). This adds back the owner's salary and personal expenses to the profit, then multiplies it by an industry factor (e.g., 2.5x - 4x). This is the standard for most owner-managed businesses.

We apply common industry benchmarks. For example, accounting firms might sell for 0.8x - 1.2x of their annual turnover. This gives a good "reality check" against the profit-based number.

We calculate Assets minus Liabilities. This is usually the "floor" price—a healthy business should never sell for less than its net asset value.

Important Disclaimer

This calculator is for educational purposes only. It provides a rough estimate based on limited inputs. It is NOT a substitute for a professional valuation performed by a qualified expert.

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