Business Worth Check is an app in ChatGPT that estimates the value of a small business from its earnings and industry, checks whether an asking price is fair, and shows what would raise the value before a sale.
Industry, revenue and owner's earnings in; a low / middle / high value out, with the multiple used and the factors moving it up or down.
See the multiple a seller is asking, how it compares with the industry, and whether an SBA 7(a) loan could finance it.
The changes buyers pay the most for, with a dollar estimate for each one.
In ChatGPT, open the app from the + menu or mention Business Worth Check, then ask a question like:
Request a broker review of your numbers
Most businesses that sell for under about $5 million are priced as a multiple of seller's discretionary earnings (SDE): net profit plus the owner's salary and benefits, interest, depreciation and one-time or personal expenses. The multiple depends on the industry, the size of the earnings, and risk factors such as how much the business depends on the owner and how concentrated its customers are.
Main Street businesses commonly sell for roughly 2 to 3.5 times SDE; larger businesses with $1 million or more of earnings are usually priced on EBITDA at higher multiples. The range by industry is wide, which is why the estimate shows a low, middle and high value.
No. It is an estimate from published industry multiples and your inputs, meant to help you plan. A certified appraisal or a broker's opinion of value looks at your actual financials, market and deal terms.
Divide the asking price (excluding real estate and inventory) by the business's SDE. If that multiple is well above the industry range, the price is likely high unless the business has strong recurring revenue, growth or a management team in place. The app also checks whether an SBA 7(a) loan could finance the deal.