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Discover the real market value of your business using EBITDA; the valuation method buyers, investors, and acquisition firms trust most.

If your business has a management layer or can run without you, EBITDA is the most accurate way to value it. Why? Because EBITDA strips out interest, tax, depreciation and amortisation, giving a clear view of your operating performance and the sustainable earnings a buyer is actually purchasing.

Our EBITDA Valuation Tool applies industry-standard multiples and adjusts for owner-dependency risk, giving you a realistic estimate of what your business could be worth today.

Get instant results, plus a detailed breakdown delivered straight to your inbox.

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EBITDA Business Valuation — (with Adjusted EBITDA) | Rule 29
Manager-led / systemised businesses

EBITDA Valuation (with Adjusted EBITDA)

Estimate what your business could be worth today using EBITDA. Optionally include Adjusted EBITDA to strip out one-offs and non-operating items for a cleaner picture.

Built by Rule 29 — Business Accountants & Advisors.

What is EBITDA?

Earnings Before Interest, Tax, Depreciation and Amortisation — a standard measure investors use to compare operating performance across businesses.

Adjusted EBITDA removes one-off, non-operating, or unusual items to show sustainable, repeatable earnings.

  • Useful where the business can run without the owner
  • Typical market multiples: ~3×–6× EBITDA (sector dependent)
  • Clear, buyer-aligned methodology

Start Your EBITDA Valuation

Enter your figures below, click Calculate to preview results, then press Send My Report to receive a polished email summary.

  • EBITDA adds back interest, tax, depreciation and amortisation to reveal operating performance.
  • Adjusted EBITDA (optional) removes one-offs/non-operating items to show sustainable earnings.
  • Valuation = (EBITDA or Adjusted) × Industry Multiple (adjusted for management/owner-dependency risk)

We’ll only use your details to send your results and helpful follow-ups. Unsubscribe anytime.

What Moves Your EBITDA Multiple

Management Depth

A capable leadership team and documented processes reduce key-person risk.

Revenue Quality

Recurring or contract-based income improves predictability and increases what buyers will pay.

Financial Hygiene

Clean MI, accurate add-backs, and well-documented adjustments build trust.

Sector Dynamics

We apply an industry base multiple and adjust to reflect your risk profile.

NOTE

Is this a formal valuation?
No, it’s a planning estimate. A formal valuation requires deeper analysis and due diligence.

What if Adjusted EBITDA isn’t relevant?
Leave it off, the tool will use standard EBITDA for your valuation.

Important

Disclaimer: This estimate is generated solely from the information you enter. We do not verify your figures. It is for guidance only and is not financial, legal, or valuation advice.

Frequently Asked Questions.

1. What exactly is EBITDA?

EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortisation.
It strips out finance decisions, tax structures, and non-cash expenses to reveal the underlying operating performance of your business, the part a buyer is actually paying for.

2. When should I use EBITDA instead of SDE?

Use EBITDA if:

  • Your business can run without you

  • You have a management team

  • Your salary (or the owner’s salary) is already normalised

  • You want to value the business as a transferable asset, not a job

EBITDA is the preferred method for larger, systemised, or more mature businesses.

3. What is Adjusted EBITDA, and do I need it?

Adjusted EBITDA removes unusual, one-off, or non-operating expenses such as:

  • Legal fees from a one-time dispute

  • Exceptional repair costs

  • Redundant staff payouts

  • COVID or disaster-related adjustments

  • Personal discretionary spending

Use it if your latest year includes irregular expenses that don’t reflect normal trading.

4. Is this a formal valuation?

No.
This tool provides an informed estimate, similar to what a buyer might use as an initial screening figure.
A formal valuation requires deeper financial analysis, normalisation of accounts, and due diligence.

5. How accurate is the valuation?

It depends on two things:

  1. How accurate your financial inputs are, and

  2. Whether your business fits the EBITDA model (manager-led, transferable).

The valuation is a reliable starting point, not a guaranteed selling price.

6. What multiples do you use?

We use industry-standard EBITDA multiples, adjusted for:

  • Sector growth

  • Recurring revenue

  • Asset-light vs asset-heavy models

  • Owner or key-person dependency

  • Financial cleanliness

  • Buyer risk tolerance

Your Final Multiple is tailored to your business, not just a generic industry number.

7. What about my assets, buildings, equipment, vehicles?

EBITDA valuations primarily focus on operating earnings, not physical assets.
If your business includes assets being sold separately or held personally (e.g., you own the trading property), those values will not be reflected in the EBITDA multiple.

You can add them back later if they are included in the sale.

8. Do you verify the information I enter?

No.
Your valuation is entirely based on the inputs you provide.
We do not audit or review your accounts. The tool generates an estimate for planning purposes only.

9. Will my valuation be emailed to me?

Yes.
After previewing your results, you can click Send My Report, and you’ll receive:

  • Your EBITDA

  • Optional Adjusted EBITDA

  • Final multiple

  • Estimated valuation range

  • Next steps to improve your multiple

Straight to your inbox.

10. Can I improve my valuation?

Absolutely.
Common improvement areas include:

  • Reducing owner dependency

  • Increasing recurring/predictable revenue

  • Cleaning up financials and MI

  • Removing personal or discretionary spending

  • Fixing inconsistent margins

  • Strengthening your management structure

We also offer a free 30-minute Valuation Review Session to help you identify the quickest wins.

11. Will my details be shared?

No — never.
Your data is stored securely and used only to send your valuation and relevant follow-up insights.
You can unsubscribe anytime.

12. What if I want to try the SDE method instead?

No problem, SDE might be more suitable if:

  • You are heavily involved in the day-to-day

  • You take non-standard salary/drawings

  • You run a small, owner-centered business

  • You have discretionary personal expenses running through the business

You can use our SDE Valuation Tool instead (Hit the link)

13. Can I run the EBITDA valuation multiple times?

Yes, take as many attempts as you want.
Many users run:

Last year’s numbers
This year-to-date
Forecast scenarios
To see how improvements affect valuation.

14. Do buyers actually use EBITDA?

Yes, it is the most widely used valuation method for businesses that are:

  • Systemised

  • Manager-led

  • £1m+ turnover

  • Scalable or investor-friendly

  • Suitable for PE/strategic buyers

Buyers trust EBITDA because it removes noise and focuses on operational performance.

How to complete the form.

Simply complete each field as honestly as you can. You will get an instant valuation in the “Results field” once you press the calculate button hit the submit button to receive a valuation report.

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