Start with earnings, not revenue
Revenue matters, but buyers care about the cash flow they can reasonably expect after they own the business.
Use SDE or EBITDA carefully
Small owner-run businesses are often discussed using seller's discretionary earnings. Larger or more professionally managed companies are often discussed using EBITDA.
Risk changes the multiple
Two businesses with the same earnings can be worth very different amounts if one has clean books, recurring demand, management depth, and low owner dependence.
Field note
The rough number is only useful if it changes behavior
Owners often want a value number first. The better sequence is to find the earnings base, identify the discounts a buyer would apply, and decide which discounts can be reduced before a sale or succession.
A business worth more on paper but still dependent on the owner is not ready.
What to do next
If this sounds familiar, the useful next step is not another generic tip. It is a clear look at the numbers, the work, the people, the owner role, and the cash cycle.