Free Business Valuation Calculator
Estimate the value of your electrical business using revenue multiples and profit-based methods. Useful for selling, buying, or planning.
Business Valuation Calculator results
Fill in the details and select Calculate to see your figures.
Estimate the value of your electrical business using revenue multiples and profit multiples for planning, partnership discussions or preparing to sell.
How to use the Business Valuation Calculator
- Enter your annual revenue (total turnover) and net profit (after all expenses including your own salary or drawings).
- Add the market value of your business assets: vans, tools, stock, and equipment.
- Adjust the revenue multiple (typically 0.3-0.8x for trade businesses without strong recurring revenue).
- Adjust the profit multiple (typically 2-4x for trade businesses).
- Review the three valuations. The midpoint gives a reasonable estimate for planning purposes.
How the Business Valuation Calculator works
A business valuation for most small trade businesses comes down to a multiple of profit. First adjust profit to Seller's Discretionary Earnings (SDE), net profit plus the owner's salary and any personal expenses run through the books, then apply an industry multiple.
- Net profit is £40,000, and you pay yourself a £30,000 salary through the business.
- Adjusted profit (SDE) = £40,000 + £30,000 = £70,000.
- A settled electrical firm with some repeat work sells at roughly 3× SDE.
- Valuation ≈ £70,000 × 3 = £210,000, before adjusting for assets, contracts, and owner-dependence.
The multiple rises with recurring maintenance contracts, a business that runs without the owner, and clean documented accounts; it falls when most work walks out the door with you. This is a planning estimate. A broker or accountant will value the specifics.
Typical UK benchmarks
- Typical Trade Business Revenue Multiple
- BizStats UK 2024 (0.5x shown as 50%)
- Typical Trade Business Profit (SDE) Multiple
- BCMS / UK200Group SME deal data 2024 (~3x, shown as 300%)
See it in your business.
Frequently asked questions
How much is an electrical business worth?
A typical small electrical business is worth between 0.3-0.8x annual revenue or 2-4x annual net profit. A sole trader earning £80k revenue might be valued at £30k-£65k. A firm with £250k revenue and £50k profit could be worth £100k-£200k. Factors like customer base, reputation, and certifications affect the multiple.
Which valuation method is more accurate?
For trade businesses, the profit multiple method is generally more relevant because it reflects actual earnings. Revenue multiples are useful as a cross-check. Professional valuers typically use a weighted blend of both, plus asset value.
How can I increase my business value?
Focus on building recurring revenue (maintenance contracts), documenting your processes, growing your customer database, maintaining certifications, and ensuring your business can operate without you personally. These factors increase the multiple buyers will pay.
Do I pay tax when I sell my electrical business?
Usually yes: you pay Capital Gains Tax on the gain. Many trade owners qualify for Business Asset Disposal Relief (formerly Entrepreneurs' Relief), which taxes qualifying gains at a reduced rate up to a lifetime limit, subject to conditions. Rates and limits change, so speak to an accountant before selling.
Does being a sole trader or limited company affect the value?
It affects what is actually sold. A limited company can be sold as shares (the whole entity, including contracts and track record), which buyers often prefer. A sole trader sells the assets, goodwill, and customer base. The business is harder to separate from you personally, which typically lowers the multiple. Recurring contracts and transferable customer relationships matter more than the legal structure.
