Question 1

How is a lower-middle-market business valued?

Accepted Answer

Buyers of businesses with $1M–$25M in earnings price them as a multiple of normalized EBITDA (or SDE for smaller companies), adjusted for size, management depth, recurring revenue, customer concentration, contracts, growth, and margins — not with a discounted cash flow model.

Question 2

What are add-backs and why do they matter?

Accepted Answer

Add-backs are owner salary, personal expenses run through the business, and one-time costs that a buyer adds back to reported earnings. They are usually the single largest adjustment in a small-business valuation and can change the result by 20–40%.

Question 3

Can I get a valuation without listing my business publicly?

Accepted Answer

Yes. Acquaras provides confidential valuation ranges and never publishes your company. Buyers only learn a company's identity after the owner approves them individually and both parties sign an NDA.