Example Company

Sample Preliminary Valuation Estimate

Ironwood Mechanical: fictional commercial HVAC contractor. Owner: Frank Ortega. Same engines as a live estimate.

Fictional company. Nothing on this page is saved.

Sample Estimate · Ironwood Mechanical · Commercial HVAC and mechanical services

Estimated Sale Price

$8.44Mto$10.4M

Based on earnings (EBITDA) of $1.8M. The range applies 4.8x to 5.9x to that figure, which is what companies with earnings of this size sell for.

Basis: 6 answers. Earnings: owner figure. Not reviewed against financial statements.

Top Buyer Concerns

From your six answers, two items would change the price or the terms.

Customer Concentration & Revenue Diversification
Costly
One customer is 32 percent of revenue. A buyer prices this, and it is usually the single largest deduction they make; above 30 percent some acquisition lenders and financial buyers require structure, an earnout or seller note tied to the account, or decline.
Buyer question: Will the revenue stay after the sale?
Owner Dependence
Costly
Decisions wait for you or default to whoever is most senior on site. A buyer reads this as no management layer, and prices the cost of installing one.
Buyer question: Does the business run without you?

Company and Industry: Ironwood Mechanical. Commercial HVAC and mechanical services.
Revenue, Last 12 Months: $18.4M
EBITDA, Last 12 Months: $1.75M
Largest Customer, Annual: $4.6M to $7.4M a year (25% to 40%)
Two Weeks Off, No Phone: Sales and big decisions would stop.
Step-Back Timing and Successor: 3 to 5 years. An outside buyer.

6 questions. Approx. 90 seconds. No account required.