Exit Multiple Calculator

Exit multiple drives owner net proceeds — strategic vs financial buyer matters.

EBITDA

Current expected multiple

Strategic buyer premium %

Auction lift %

Exit value (with strategic + auction)

$10,875,000

Base value

$7,500,000

Premium value

$3,375,000

How the math works

Base = EBITDA × multiple. Exit = base × (1 + strategic premium + auction lift).

$1.5M × 5 = $7.5M base + $2.25M strategic + $1.125M auction = $10.875M exit.

How to Use

Enter ebitda.
Enter current expected multiple.
Enter strategic buyer premium %.
Enter auction lift %.
Read exit value (with strategic + auction).

Frequently Asked Questions

Exit multiple drivers?

Recurring revenue: 1–3x multiple lift over transactional. Customer concentration <10% top customer: 0.5–1x lift. Growing 15%+: 1–2x lift over flat. Defensible moat: 0.5–2x lift. Strategic buyer (synergy): 20–50% premium over financial. Industry: SaaS 5–10x ARR (premium), service 3–6x EBITDA, retail 4–7x, manufacturing 5–8x, healthcare 6–10x, distribution 4–7x. Larger size = higher multiple due to deeper buyer pool. Auction process: 10–25% multiple uplift over bilateral negotiation. Engage M&A advisor at $5M+ EBITDA.

How does this fit small business finance?

Small business owners use this calculator alongside cash flow forecast, P&L, balance sheet, and tax projection. Pair with industry benchmark data (RMA, BizMiner, IBISWorld). Decision framework: ROI > capital cost + risk premium > minimum threshold for owner time. Single calculator output is one input — owner intuition + market knowledge + financial discipline complete the picture.

SBA financing fit?

SBA 7(a): up to $5M, working capital, equipment, real estate, business acquisition, longer terms. SBA 504: real estate + equipment, fixed rate, 10–25 years. SBA Express: up to $500k, faster. SBA Microloan: up to $50k. Owner-occupied real estate (51%+ owner use) qualifies. Personal guarantee required. SBA fees: 2–3.75% of guaranteed portion.

When is this worth pursuing?

Small business decisions weighing capex, hiring, expansion, financing should consider: ROI threshold (typically 20%+ for owner risk), payback period (under 3 years preferred), cash flow coverage, opportunity cost vs alternatives. Calculator outputs inform but don't decide — owner judgment about market, competition, and execution capacity is what makes the call.