Add-back finder
Tick the costs your company pays that a new owner would not need and put in a rough amount. See what a buyer is likely to accept and the proof to gather.
Free, no email, your numbers stay in your browser unless you email them to yourself.
What a buyer is likely to accept
Tick an add-back and put in an amount to see the range a buyer is likely to accept.
Add-backs work both ways. If family works for free or you pay yourself less than a manager would cost, a buyer subtracts the difference. These labels are our estimate of how buyers usually treat each item; a CPA can confirm which ones a buyer will accept.
This is an educational estimate, not an appraisal. RetireFromTrades gives an illustrative range based on what you told us and on general market information. It is not a formal business valuation or appraisal, and it is not an offer to buy your business. We are not a business broker, M&A adviser, CPA, lawyer or financial adviser, and nothing here is legal, tax, accounting or investment advice. Real offers depend on your actual financial records, buyer diligence, deal terms and market conditions, and can be higher or lower than this range. Before you make any decision, talk to a licensed professional. If you ask, we can introduce you to an independent licensed business broker; we do not broker, negotiate or take part in any sale.
How this works
The formula
- Low end = the items marked likely accepted
- High end = likely accepted + needs proof
- Often rejected items are left out of both
- If you enter revenue, personal and one-time items together are capped at 15% of it
The assumptions
- The labels are our estimate of how buyers and quality of earnings reviews usually treat each item. They are not rules, and every buyer is different.
- Likely accepted items tie to records a buyer already sees, like payroll and tax returns. Needs proof items count when you can show receipts, invoices or statements. Often rejected items usually get no credit.
- The 15% of revenue cap is our estimate: personal and one-time items above that are more likely double counting than real costs.
- Add-backs work both ways. If family works for free or you pay yourself less than a manager would cost, a buyer subtracts the difference.
Sources
- Raincatcher: private equity in HVAC
- Raincatcher: private equity in plumbing
- How we build our numbers, and what we have not verified: our methodology.
Next step
Would my business run for a month without me?
Owner dependence test
Ten trade-specific questions buyers ask, scored, with what to fix first.
Read more