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Free instant estimate for Canadian small businesses. We use real BizListings.ca marketplace data plus standard SDE-multiple benchmarks — no email required to see your range.

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How business valuation works in Canada

Most small and mid-market Canadian businesses are valued as a multiple of SDE (Seller's Discretionary Earnings) or EBITDA. SDE is roughly net profit plus the owner's salary, interest, depreciation, amortization, and one-time or personal expenses that a new owner wouldn't inherit. It answers the question: "How much money does this business actually put in an owner-operator's pocket each year?"

What SDE multiples mean

An SDE multiple is a shorthand for how the market prices a business. A restaurant might sell at 1.5–2.5× SDE, a plumbing company at 2.2–3.2×, and a stable SaaS business at 3–6× SDE (or higher when priced on recurring revenue). The multiple reflects perceived risk and growth — the safer and more transferable the business, the higher the multiple.

What raises or lowers value

Buyers pay more for clean financials, recurring or contracted revenue, a diverse customer base, a business that isn't dependent on the owner, a trained team, transferable leases, and a track record of growth. Buyers pay less when books are cash-based or messy, one customer dominates revenue, the owner is the business, or the lease is short with no options.

When to get a formal valuation

An online estimate is a great starting point for planning. For a real sale, financing application, tax or estate work, or a legal proceeding, hire a Chartered Business Valuator (CBV) or an experienced M&A advisor. Find a Canadian business advisor →

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Frequently asked questions

Most owner-operated Canadian businesses are valued as a multiple of Seller's Discretionary Earnings (SDE) — typically 2× to 4× — or, for larger companies, a multiple of EBITDA. The multiple moves with industry, size, growth, customer concentration, how dependent the business is on the owner, and whether the sale includes real estate or hard assets.

As a rule of thumb: 2×–2.5× SDE for very small, owner-dependent businesses; 2.5×–3.5× for stable businesses with staff and repeat customers; 4×+ for businesses with recurring revenue, a management team in place, and documented growth. Service businesses with no assets sit at the low end; manufacturing and businesses with equipment or contracts sit higher.

It gives you a defensible starting range, not a formal valuation. Use it to sanity-check expectations before you list or make an offer. For financing, tax planning, a shareholder dispute, or an actual transaction, engage a Chartered Business Valuator (CBV) or an M&A advisor.

Usually yes, in part. An SDE multiple typically includes the equipment needed to run the business. Saleable inventory and owned real estate are commonly valued separately and added on top. Confirm exactly what's in and out before you compare two asking prices.

No. The valuation calculator is free, works instantly in your browser, and requires no account. You can download your results as a PDF and optionally email them to yourself.