Valuation And Preparation
Sub-topic
Business valuation & exit preparation
Valuation methods for SMEs, what moves the multiple, and the operational work that lifts a business out of owner-dependence.
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Articles in Valuation & Preparation
How to value a UK small business
UK small businesses are typically valued at a multiple of EBITDA or seller's discretionary earnings (SDE), with multiples ranging from 1-3x for very small or owner-dependent businesses up to 6-10x for high-quality scaled SaaS or specialist firms. The right multiple depends on the business model, growth, customer concentration, and the buyer type.
Owner dependency: what it is and how to fix it
Owner dependency is the degree to which a UK business stops functioning when the owner takes time off. It's the single largest valuation discount factor in most SME sales — a fully owner-dependent business may sell at 1-2× SDE, while an owner-independent one in the same sector may sell at 4-6×. The fix takes 12-24 months: delegate decisions, document processes, build a management team, remove yourself from operations.
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