What Is My Business Worth? Free Confidential Market Assessment
Before you decide whether to sell this year or in three years, find out what qualified buyers and commercial lenders will actually pay for your company in today’s Northeast Ohio and Erie, PA market.
- True Recasted Cash Flow: We calculate your real Seller’s Discretionary Earnings (SDE) or Adjusted EBITDA with every defensible owner add-back.
- Regional Comps & Multiples: Benchmarked against actual manufacturing, distribution, service, and construction deals in NEO & Erie, PA.
- Zero Cost, Zero Obligation & 100% Confidential: Reviewed personally by managing brokers Ben Sutterlin & Mike Benson.
Prefer to talk by phone first? Call (440) 461-2202.
Request Your Confidential Assessment
Tell us a little about your business. Everything you share is strictly confidential.
Why Your Tax Return Bottom Line Is Almost Never Your True Business Value
Every good CPA works to legally minimize your taxable income. When it comes time to value and sell your business, however, showing a low taxable net profit without proper financial recasting can cost you significant proceeds at the negotiating table.
At Empire Business Advisors, our business evaluation methodology looks beneath the surface of your federal tax returns and P&L statements to reconstruct your company’s true economic earning power. Across Greater Cleveland, Akron, Canton, Sandusky, and Erie, PA, buyers and commercial bank underwriters rely on two primary cash-flow metrics:
1. Seller’s Discretionary Earnings (SDE)
Used primarily for owner-operated businesses with up to $1 million in annual cash flow, SDE measures the total pre-tax cash flow available to a single full-time working owner. To calculate SDE, we start with net income before taxes and add back:
- Interest, Depreciation & Amortization: Non-cash accounting charges and debt service that will not carry over to the new buyer.
- Full Owner Compensation & Payroll Taxes: Your W-2 salary, bonuses, profit-sharing, health insurance, retirement match, and employer payroll taxes.
- Legitimate Discretionary & Non-Recurring Add-Backs: Personal vehicles, cell phones, travel, non-working family members on payroll, one-time legal or consulting fees, and capital equipment expensed directly on the P&L.
- Normalized Rent Adjustment: If you own your facility in a separate real estate entity and pay yourself above-market or below-market rent, we normalize rent to fair market value.
2. Adjusted EBITDA
For larger lower-middle-market companies—typically generating $750,000 to $3 million+ in earnings and sought by private equity groups, family offices, or corporate strategic buyers—valuation is anchored on Adjusted EBITDA. The calculation includes all legitimate owner add-backs, but deducts the realistic market salary required to hire a professional General Manager or President to run the business post-closing.
Real Northeast Ohio Valuation Examples (Blind)
Here is how recasted cash flow, hard assets, and strategic positioning translate into real asking prices across our regional pipeline:
- Precision CNC & Hydraulic Shop: $897K revenue / $315K recasted SDE → $795K asking (~2.52x SDE including specialized machinery & inventory).
- 25-Year Tree & Land Clearing Service: $851K revenue / $373K recasted SDE → $1.058M asking (~2.84x SDE backed by heavy crane/truck fleet and 1,000+ repeat clients).
- Commercial Masonry & Concrete Contractor: $9.91M revenue / $880K recasted SDE → $2.06M asking (supported by multi-million-dollar commercial WIP backlog and seasoned field superintendents).
- Established Industrial Distributor (Under LOI): Multi-million revenue → $4.15M asking (generated multiple competing strategic and PE offers).
Valuation Drivers by Industry
Multiples vary significantly by sector. Explore what drives buyer premiums in your specific industry:
Six Factors That Increase Business Value in Cleveland & Northeast Ohio
Two companies with the exact same $500,000 in annual cash flow can sell for vastly different prices. Read our guide on strong selling points or review the six value drivers our brokers evaluate during your free assessment:
1. Low Customer Concentration
When no single customer accounts for more than 10% to 15% of annual revenue, SBA 7(a) underwriters and private equity committees view your cash flow as far more durable—directly expanding the multiple they will approve.
2. Management & Bench Depth
If shop foremen, estimators, project managers, or inside sales reps handle day-to-day quoting and fulfillment without every call routing through the owner’s cell phone, your company attracts both financial and strategic buyers.
3. Clean, Verifiable Books
Three years of consistent tax returns, accrual or clean cash-basis P&Ls, and documented add-backs eliminate buyer skepticism and prevent retrades during formal quality-of-earnings due diligence.
4. Recurring or Repeat B2B Revenue
Preventative maintenance contracts, blanket purchase orders, OEM supply agreements, and multi-decade repeat commercial accounts command higher multiples than one-off competitive bid work.
5. Well-Maintained Equipment & CapEx
A buyer who does not have to spend $400,000 replacing aging CNC spindles or worn service trucks in Year 1 can dedicate more debt capacity directly to your purchase price at closing.
6. Facility & Lease Stability
Whether you own your industrial building in Cuyahoga, Summit, Stark, or Erie County and want to sell or lease it alongside the business, clear environmental history and long-term lease options protect deal value.
Frequently Asked Questions About Business Valuations in Northeast Ohio
What is the difference between a Free Confidential Market Assessment and a certified CPA appraisal?
A certified business appraisal prepared for estate tax, divorce, or litigation purposes often costs $8,000 to $25,000 and relies on theoretical accounting formulas rather than real-world buyer behavior. Our Free Confidential Market Assessment is built specifically for business owners considering a sale: we recast your actual cash flow (SDE or Adjusted EBITDA) and benchmark it against real closed transactions, SBA 7(a) debt-service coverage ratios, and active buyer appetite in Cleveland, Northeast Ohio, and Erie, PA.
What is the difference between SDE (Seller's Discretionary Earnings) and EBITDA?
Seller’s Discretionary Earnings (SDE) is the total pre-tax financial benefit a single full-time owner-operator derives from the business—including net profit, interest, taxes, depreciation, amortization, one owner’s full salary and payroll taxes, health insurance, auto/travel perks, and one-time expenses. SDE is used to value most businesses generating under $1 million in annual cash flow. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) leaves a market-rate General Manager salary in as an operating expense and is the standard metric used by private equity groups and strategic buyers for larger lower-middle-market companies.
What multiple of earnings do businesses sell for in Northeast Ohio and Erie, PA?
While every business is unique, established main-street and lower-middle-market companies in Northeast Ohio typically sell for 2.2x to 4.0x Seller’s Discretionary Earnings (SDE), while larger manufacturing, distribution, industrial service, and specialty trade businesses generating $750,000 to $2.5M+ in Adjusted EBITDA often command 4.0x to 6.0x+ EBITDA depending on customer diversification, proprietary capabilities, equipment condition, and management depth.
How are machinery, equipment, inventory, and real estate handled in a business valuation?
In a cash-flow valuation, the normal working equipment and furniture required to generate your annual cash flow are included in the cash-flow multiple, along with a normal level of salable working inventory. However, when a business holds heavy CNC machinery, large commercial vehicle fleets, or excess inventory, or when you own the facility in a separate LLC, we evaluate both cash-flow multiples and hard-asset values—and can structure the real estate as either a simultaneous purchase or a long-term triple-net (NNN) lease.
What documents do I need to get an accurate market assessment?
You do not need any documents to start our initial conversation. When you are ready for a detailed valuation range, we typically review your last three years of federal business tax returns, year-to-date profit and loss (P&L) statement and balance sheet, an approximate list of owner perks/add-backs, and a high-level summary of your equipment and real estate.
Ready to Find Out What Your Business Is Worth?
Scroll up to complete the confidential assessment form or call our North Royalton office directly at (440) 461-2202.