Simple business valuation estimator
Estimate what your business may be worth using profit, revenue and net assets, with a table that shows how the multiple changes the value.
Before you sell, invest or bring in a partner you need a sense of value. Enter the yearly profit, revenue and net assets and the multiples you think are fair, and the workbook gives three estimates, their average and their range, with a table showing how the value changes as the profit multiple changes.
Owners thinking of selling or taking on a partner, buyers and investors sizing up a small business, and accountants asked for a rough estimate.
What is included
- Value from profit, revenue and net assets
- Average and range of the three estimates
- Table of value at different profit multiples
- All inputs in labelled cells
- A starting point for negotiation
Advertisement
Screenshots
How to use it
- Type the business's yearly net profit, revenue and net assets.
- Enter the profit multiple and the revenue multiple you think are fair for the sector.
- Read the three estimates, the average and the range.
- Use the table to see how the value moves with the multiple.
Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.
Advertisement
More in this category
-
Businesspdf
Small business funding guide for Kenya
The main ways Kenyan small businesses raise money: savings, loans, SACCOs, mobile lenders, grants and investors.
KES 720KES 800-10%
View details →
-
Businesspdf
SOP writing guide and templates
How to write standard operating procedures that people actually use, with templates for a process, a checklist and a training record.
KES 810KES 900-10%
View details →
-
Businesspdf
Sales proposal and quotation pack
Win more work with a clear proposal, a professional quotation and a follow-up letter, with a checklist for each step.
KES 630KES 700-10%
View details →
What the simple business valuation estimator does
Before you sell, invest or bring in a partner you need a sense of value. Enter the yearly profit, revenue and net assets and the multiples you think are fair, and the workbook gives three estimates, their average and their range, with a table showing how the value changes as the profit multiple changes.
Who it is for
Owners thinking of selling or taking on a partner, buyers and investors sizing up a small business, and accountants asked for a rough estimate.
How to use the workbook
- Type the business's yearly net profit, revenue and net assets.
- Enter the profit multiple and the revenue multiple you think are fair for the sector.
- Read the three estimates, the average and the range.
- Use the table to see how the value moves with the multiple.
- Save a copy under a new name for each month or year, so earlier records stay as they were.
What is inside
- Value from profit, revenue and net assets
- Average and range of the three estimates
- Table of value at different profit multiples
- All inputs in labelled cells
- A starting point for negotiation
The workbook has these sheets: Instructions, Valuation. The main table has the columns Profit multiple; Value at that multiple. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.
Tips for getting it right
- A rough estimate is not a formal valuation; use a professional for a sale.
- Use sustainable profit, not a one-off good year.
- Multiples vary by sector and risk, so compare with similar sales.
- Adjust profit for the owner's own pay so it reflects what a buyer would earn.
Why keep this record
Running a business on memory works until it grows. Writing the numbers down turns opinions into facts you can compare month to month, and shows early which products, customers or costs deserve attention. Even a simple workbook, used every week, usually beats a sophisticated one that is opened once a year.
Questions people ask
Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.
Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.
Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.
Keeping it safe and up to date
A plan is only as good as the numbers you put in. Start with honest estimates, update the workbook as real figures arrive, and compare the two so your next estimate is better. Save a dated copy each month so you can see how your thinking changed.
Read how to build a cash flow forecast for the wider picture. Free calculators that go with it: Corporation tax calculator, Capital gains tax calculator. See more business templates or ask us for a custom one.
The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.
Related guides, calculators and templates
- Free calculator: Corporation Tax Calculator
- Free calculator: Capital Gains Tax Calculator
- Guide: Should you buy a home or keep renting in Kenya? A numbers-first guide
- Guide: Buying off-plan property in Kenya: the risks and the checks to run
- Guide: Insuring a rental property: what to cover and what to ask
- Another template: Rental property investment analyser
- Another template: 12-month cash flow forecast
- Another template: Break-even and pricing calculator
Need something different? Request a custom template, browse all guides or see every Excel template.
Scroll inside the box to read more.