Mondo Realty · Insider Knowledge

How to Evaluate
Any Business

Whether you're acquiring, exiting, or simply getting your bearings — understanding how businesses are priced separates the dealmakers from the dreamers. Here's the framework we've built over 30+ years of doing this.

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Interactive Tool

Business Valuation Calculator

Plug in your numbers and get a real-time estimate based on how your industry actually trades. Where two methods exist, pick the one that fits your situation best. Every figure here is a conversation starter — not a closing number.

Run Your Numbers
All 17 business categories · Dual valuation methods where applicable · Full EBITDA add-back & D&A adjustments
Business Type
Select a business type to see how it's valued.
Your Valuation Breakdown
Select a business type and enter your figures — your estimated range will appear here instantly.
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Estimation only — not a formal appraisal or offer of value. Multiples shift based on location, lease terms, market conditions, and deal structure. For a real valuation conversation, contact Mondo Realty.
Maximize Your Value

EBITDA Add-Backs

Most sellers undervalue their own business simply because their books don't tell the full story. Owner expenses that flow through the P&L are legitimate add-backs — and they directly increase your adjusted earnings, which is what a buyer actually pays a multiple on.

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Car Payments & Auto Insurance
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Cell Phone Bills
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Personal Travel
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Health / Life Insurance
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Family Member Payroll
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Owner's Above-Market Salary
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Personal Meals & Entertainment
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Home Office Deductions
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The Add-Back Formula
Reported Net Income$400,000
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Owner add-backs$120,000
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Depreciation & amortization$30,000
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Interest & taxes$50,000
Adjusted EBITDA$600,000

Higher EBITDA × your multiple = significantly more value at closing.

Industry Benchmarks

Valuation Multiples by Business Type

Every industry has its own pricing language. These are the benchmarks that experienced buyers and sellers walk in knowing. They're the starting framework for any serious conversation — not the final word, but the right first word.

Pizzerias15× weekly gross / ½× annual gross / 2–2.5× net
Delis15× weekly gross
Pharmacies10–20% of annual sales
Supermarkets2–4× EBITDA / 15–20× weekly
Car Washes4–6× EBITDA (up to 10× if NOI >$1M)
Hotels (non-major cities)4–6× gross / $200K–$800K per key
Laundromats3–6× EBITDA
Liquor Stores~30% gross sales + inventory
Auto Body Shops~2× net income
Distribution / Manufacturing3–4× EBITDA
SaaS5–10× EBITDA (7–10× if >$2M)
Logistics4–5× cash flow
Marinas9–10% cap rate (biz + property)
Bagel Stores2–3× cash flow
Accounting Firms1.8–2.2× gross revenue
Home Services (HVAC, Roofing…)3–5× EBITDA
Commercial Cleaning2–4× EBITDA
The Real Talk
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Multiples are a starting point
not the finish line.

Numbers open the door. But what's behind that door is what matters. After decades of structuring acquisitions, we've seen brilliant multiples collapse on weak fundamentals — and modest numbers command premium prices because the business was built right. Three things determine which side of that line you're on.

The Three Factors

What Actually Moves the Number

After three decades of structuring deals across every business category imaginable, these are the three levers that consistently separate a premium exit from a discounted one — regardless of industry.

01

Can It Run Without You?

If the business stops when you leave, you don't own a business — you own a job. Buyers pay a premium for systems, teams, and processes that operate independently.

If not → you own a job, not a business
02

Is Your Revenue Diversified?

One customer making up 40% of sales is a red flag, not a feature. Concentrated revenue means concentrated risk — and buyers price that in immediately.

1 customer = 40% of sales = instant 20% discount
03

Are Your Books Clean?

Buyers don't pay a premium for mystery — they pay for clarity. Messy financials create doubt. Clean, well-documented books signal a well-run operation worth paying for.

Buyers pay a premium for clarity, not complexity
Rentals vs. Businesses

Why Businesses Trade Differently

Landlords and business owners operate in completely different economies. The benchmarks, the financing structures, the risk profiles — none of it translates directly. Understanding these differences is what positions you to make the right move with your capital.

Rental Properties
Trade at 6–7% cap rates
You manage tenants & contractors
Roof, HVAC, repairs on you
Conventional financing 20–30% down
You are the management team
Cash flow tied to occupancy
Businesses
Trade at 20–30% cap rates
Management team already in place
Seller often finances the deal
SBA loans cover 70–90%
Operations run without you
Cash flow from day one

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