Valuation & Multiples Archives - CT Acquisitions

Understand the Ideal ARR to Valuation Ratio for Your Business

what is a good arr to valuation ratio

The revenue to valuation ratio is what a buyer pays for each dollar of your annual revenue, and for subscription businesses it is measured as an ARR multiple. This short primer explains how an ARR multiple frames the value investors place on recurring revenue. We focus on practical signals: growth, retention, and unit economics. Predictability […]

Small Business Valuation Multiples by Sector in 2026: Real Ranges Across 25+ Industries

small business valuation multiples by industry

Small Business Valuation Multiples by Industry in 2026: Real Ranges Across 25+ Industries Small business valuation multiples by industry in 2026 vary widely, and the report below cuts through consultant noise to give founder-led owners and buyers a clear view of current price trends across 25+ industries. Working ranges, per the table below: HVAC and […]

Unlock the SDE vs EBITDA Business Valuation Formula

sde vs ebitda business valuation formula

We cut through the noise so founders can pick the metric that fits their exit path. This short guide clarifies what each measure captures and when each one matters. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It gives a clean view of operating cash flow for financial buyers. SDE reflects the total […]

Optimize SDE vs EBITDA in Your Business Valuation Excel

sde vs ebitda business valuation excel

We help founders and owners prepare clear financial narratives for a successful exit. Our focus is practical. We show whether seller-adjusted earnings or a standardized earnings metric better reflects value for a given company. Start with the facts. ABC Manufacturing serves the automotive industry and reports $700,000 in net income. The market multiple for private […]

SDE vs EBITDA: A Business Valuation Example

sde vs ebitda business valuation example

We cut through the noise. Selling a founder-led company starts with clarity on two core metrics. EBITDA is earnings before interest, taxes, depreciation, and amortization. It shows adjusted operating profit for larger companies and institutional buyers. SDE captures the full financial benefit a single owner-operator receives. It adds back owner salary, discretionary expenses, and other […]

Navigating SDE vs EBITDA: Optimize Your Business Valuation

sde vs ebitda business valuation

We help you cut through the noise. Choosing between sde and ebitda is not academic. It shapes how buyers and sellers see cash flow and multiples. Our guide explains how net income, interest, taxes, depreciation, and amortization reveal true performance. We show which metric fits founder-led companies and which suits investor-led firms. Whether you are […]

SDE vs EBITDA: Unlock Business Valuation Insights

sde vs ebitda business valuation calculator

We cut through the jargon to show which earnings metric fits your sale strategy. Owners and founders must know how to present earnings clearly. That starts with understanding how SDE and EBITDA differ in treatment of owner pay and adjustments. The IBBA defines SDE as net income plus interest, taxes, depreciation, amortization, and owner compensation. […]