How Much Is My Business Worth in Canada?
Know your marketable range before anyone anchors you.
Most Canadian owners do not need a formal valuation as their first step. They need a grounded, owner-side range before a broker, buyer, lender, or successor names a number.
Indicative range only. Not a formal CBV valuation, appraisal, brokerage service, legal advice, tax advice, or investment advice.
How do you value a small business in Canada?
SDE versus EBITDA: the multiple is the starting point, not the answer. Owner-operated small businesses are usually framed on SDE, while larger businesses are more often framed on EBITDA.
Before you rely on a multiple, see what range your business may actually support.
What is Seller's Discretionary Earnings?
Owner-benefit earnings: net profit plus owner salary, discretionary expenses, one-time costs, and defensible add-backs. Add-back quality drives what a buyer accepts. Read more about Seller's Discretionary Earnings.
What multiple do Canadian small businesses sell for?
The right basis depends on the business profile. The table below frames common valuation bases in indicative language. These are indicative, not guaranteed.
| Business profile | Common valuation basis | Indicative range language |
|---|---|---|
| Owner-operated small business | SDE | Often discussed as an SDE multiple |
| Larger SME with management team | EBITDA | Often discussed as an EBITDA multiple |
| Asset-heavy or distressed business | Asset value | May be constrained by equipment, inventory, or liquidation value |
| Highly dependent on owner | SDE/EBITDA with discount factors | Range may be reduced by transition risk |
| Clean books, recurring revenue, low owner dependency | SDE/EBITDA with premium factors | Range may be stronger if buyers and lenders can support it |
Why is a marketable range different from a business valuation?
A formal valuation may be required for tax, legal, shareholder, estate, litigation, or regulatory purposes, and ProvenX does not replace that. A marketable range is a practical pre-advisor estimate. Learn how the ProvenX Marketable Range Report works.
Why might a broker's asking price be different from your marketable range?
An asking price is often a listing strategy. A marketable range asks what buyers, lenders, documentation, risk, and deal structure support. You can check whether a broker's asking price is realistic.
What factors increase or decrease what my business may support?
Several owner-confirmed factors move what a business may support:
- Revenue trend
- SDE or EBITDA quality
- Customer concentration
- Owner dependency
- Recurring revenue
- Staff depth
- Clean financials
- Lease assignability
- Supplier concentration
- Equipment condition
- Buyer financing, including vendor take-back financing
Should I use a free business valuation calculator?
Yes, as a rough start, not the anchor. Try the free Canadian business valuation calculator to orient yourself before you go deeper.
What should I do before speaking with a broker, buyer, or successor?
Start with step zero: calculate your normalized earnings, understand your indicative range, identify risks, organize your documents, and speak with advisors after you know your baseline.
Frequently asked questions
Is ProvenX a formal business valuation?
No. ProvenX provides an indicative marketable range based on owner-confirmed inputs and Canadian SME benchmark assumptions. It is not a formal CBV valuation, certified appraisal, brokerage service, or professional advice.
Can I use a ProvenX report for tax, legal, litigation, or shareholder purposes?
No. For those matters, engage a qualified professional such as a Chartered Business Valuator, lawyer, accountant, or tax advisor.
Why should I get my range before speaking with a broker?
A broker, buyer, or successor may introduce the first number. Once that happens, expectations can become anchored. An independent owner-side range helps you enter the discussion with a grounded reference point.
What is the difference between price and marketable range?
Price is the number a buyer and seller eventually agree to. Marketable range is an indicative range that considers earnings, buyer financing, deal structure, risk, documentation, and market assumptions before a transaction happens.
What information do I need to estimate my range?
Recent revenue, profit, owner compensation, add-backs, industry, approximate asset base, debt, customer concentration, owner involvement, and basic readiness indicators.
ProvenX Marketable Range Reports are indicative tools based on owner-confirmed inputs and Canadian SME benchmark assumptions. They are not formal business valuations, certified appraisals, brokerage services, or financial, legal, tax, or investment advice. For formal valuation, regulatory, tax, or legal purposes, engage a qualified professional. Results reflect inputs provided by the user and may not account for all factors affecting marketable range.