Obtain a business valuation (broker or CPA valuation, or a documented SDE/EBITDA multiple)

You can't plan an exit without knowing what drives value. Understanding business valuation — how buyers price a business and what makes that number bigger — lets you build worth on purpose, not by accident.

Do this

1. Learn the basic method: a multiple applied to your adjusted earnings (SDE/EBITDA).
2. Identify your value drivers (recurring revenue, low owner-dependence, clean books).
3. Work on the drivers that raise your multiple over the next few years.
4. Get a professional valuation to know your real starting point.

How Buyers Value a Business

Value ≈ Adjusted Earnings (SDE/EBITDA) × a Multiple

The multiple goes UP when the business has: • Recurring / predictable revenue • Low dependence on the owner (runs without you) • Diversified customers (no single client > ~15%) • Clean, verifiable financials • Documented systems and a capable team • A consistent growth trend

Example: $200k SDE × 3.0 = $600k. Move the multiple from 2.5 to 3.5 and the same business is worth $200k more. The drivers are what you build in the Exit stage.