Free tool · Step 3 of your deal thread
What Drives Your Business's Sellability?
Sellability is what a buyer actually prices. Set the six value drivers behind it, from owner dependence and recurring revenue to customer concentration, and see how far each one moves your valuation multiple.
With these drivers, your business is worth about
$510K – $1.2M
Your drivers vs. neutral
0.00× on your multiple
All six drivers are at neutral.
Typical market adjustments, not a promise: buyers price these case by case.
What each driver is doing
- Owner dependence neutral
- Revenue trend neutral
- Customer concentration neutral
- Recurring revenue neutral
- Documentation neutral
- Management depth neutral
The six drivers below are what buyers adjust a multiple for. Set each one honestly; the result panel shows how each answer typically moves it.
Score your owner dependence
Not sure how dependent the business is on you? Answer these four and we'll score it. The score sets the owner-dependence driver above, so the two always agree.
How this business sellability tool works
Two businesses with the same earnings rarely sell for the same price; the difference is sellability, the value drivers behind the number. This tool makes them concrete: it starts from your industry's multiple range, adjusts it for each driver the way buyers typically do, and shows you which lever moves your number most, so you know where a year of preparation pays best.
Start from your range
The tool applies your industry multiple range to your earnings, the same math as our valuation calculator, and shares one session thread with it, so both tools always agree.
Pull the six levers
Set each driver to where your business honestly is today. The result panel breaks down the typical adjustment buyers make for each answer, and how far your settings move the multiple versus neutral.
Read it as a map, not a promise
The deltas are typical market tendencies, not commitments. Use them to see which improvement is likely worth the most, then pressure-test the plan with an advisor.
Common questions about business value drivers
What are the value drivers of a business?
Value drivers are the qualities buyers adjust a multiple for: how dependent the business is on its owner, whether revenue is growing, how concentrated the customer base is, how much revenue repeats or recurs, how well processes and books are documented, and whether a management team runs the day to day. Two businesses with identical earnings can sell for very different prices because of them.
How do I increase the value of my business before selling?
Work the drivers, not the asking price. Make the business run without you, build a second layer of management, document your processes and clean up your books, spread revenue across more customers, and grow the share of revenue that repeats. Most of these take a year or more to move, which is why advisors suggest starting well before you plan to sell.
Which value driver matters most?
For most owner-run businesses, owner dependence: a business that runs without its owner is safer to buy and simpler to transfer, and buyers pay for that. The tool above shows a typical adjustment beside each driver so you can see which lever moves your own estimate most, but every sale weighs them differently.
Does improving a driver guarantee a higher sale price?
No. The adjustments in this tool are typical market tendencies, not promises. A specific buyer may care more about one factor than another, and diligence, deal structure, and timing all move the final number. Treat the tool as a map of what usually matters, then confirm with an advisor what matters for your business.
What is owner dependence and how is it scored?
Owner dependence measures how much of the business lives in the owner personally: whether it can run four weeks without you, whether there is a second-in-command, whether processes are written down, and whether customers belong to the company rather than to you. The scorer in the tool turns those four answers into a 0-100 score and sets the matching driver, the same way the valuation calculator reads it.
Why does my estimated range change when I change a driver?
The calculator applies your industry multiple range to your earnings, then nudges that range for each driver the way buyers typically do: up for strengths like recurring revenue, down for risks like one dominant client. The range also stays honest: extreme combinations are kept within realistic bounds, and less certain inputs widen the band rather than fake precision.
Every calculator in this suite shares your deal thread for the session, so the drivers you set here follow you into the valuation and proceeds tools, and clear when you close your browser.