The value of a business is typically expressed as a multiple of its profits, commonly using EBITDA (earnings before interest, taxes, depreciation, and amortization). Most small businesses sell for 2 to 4 times annual profit, while mid-sized companies often fetch 5 to 8 times.
Larger, high-growth businesses can command 10 times or more. The exact multiple depends on industry, growth rate, customer concentration, recurring revenue, and overall market conditions. A stable, scalable business with strong cash flow will always attract a higher multiple than one with inconsistent earnings.