What's my business worth? Free calculator
Most small businesses sell on a multiple of Seller's Discretionary Earnings (SDE): profit plus what the owner takes out. Use last year's numbers or your tax return.
El Cajon notes
El Cajon has a strong base of auto-related businesses, trades, contractors, small manufacturers, and family-run restaurants and markets, including many run by the city's large Chaldean and Middle Eastern communities. Many of these businesses are tied closely to family and community networks.
Community-based customer relationships are valuable, but a buyer from outside the community may worry about keeping them. A longer transition period, where you stay on and introduce the buyer, can raise what a buyer is willing to pay.
Auto shops and trade businesses often own a lot of equipment. Equipment usually goes with the business in the asking price, but buyers will look at its age and condition. A simple list with purchase dates and condition makes your price easier to defend.
If your business has licenses or permits tied to you personally, such as a contractor's license, smog check station license, or alcohol license, find out what a buyer needs to transfer or get a new one. Some take months.
Real estate is a big piece for some El Cajon owners. Decide whether to sell or lease the property before you list, because it changes how buyers finance the deal.
A worked El Cajon example
An El Cajon HVAC company with $1.2 million in revenue, $150,000 in net profit, an owner draw of $100,000, and $20,000 in add-backs has SDE of $270,000. With mostly recurring service agreements and an owner involved with staff, the calculator suggests about $620,000 to $930,000. That's where recurring revenue pays off. Without maintenance agreements, the range would be lower.
El Cajon checklist
- List equipment with age and condition.
- Review license transfer rules for your trade.
- Pull three years of tax returns and P&Ls.
- Document customer relationships and how a buyer keeps them.
- Decide on real estate: sell or lease.
Selling a community-rooted business
Businesses tied to El Cajon's communities often depend on trust built over years. A buyer from the same community may keep that trust more easily. A buyer from outside may need a longer handoff. Plan for it.
Consider offering a transition period, a few months to a year, as part of the deal. It reassures buyers and lenders.
For trades with licensing, buyers may need a qualifier, a licensed person, in place before closing. Start that early so it doesn't hold up the sale.
Questions El Cajon owners ask us
Will a buyer pay for my equipment separately? Usually equipment is included in the price, but its condition affects the price. Can I keep my building and lease it to the buyer? Yes, and many owners do. What if my business depends on family workers? Show what it would cost to replace them; buyers will figure it out anyway. How do I keep the sale quiet? Use a broker and require buyers to sign NDAs. What about my business name? It usually transfers with the business; check trademarks and domain names.
El Cajon resources
Free advising through the Small Business Development Center network and SCORE San Diego can help you get ready to sell. Your CPA can recast financials and project taxes. For licensed trades, check the CSLB rules on replacing a qualifier, and for other licenses, the issuing agency. Community business associations are a good place to hear how other local owners handled their exits, including what they'd do differently.
Before you meet a broker, run the calculator twice: once as things are, once as if a manager ran the shop. The difference is a rough measure of what reducing owner dependence could be worth, and a good reason to start a year or two early.
More detail: our full guide covers rules, questions to ask every bidder, and red flags that apply across the county.
Town guides
Questions
Do I need to list my equipment when selling my El Cajon business?
It helps. A list with age and condition makes your price easier to support, and buyers' lenders often ask for it.
What happens to my contractor or smog license when I sell?
Many licenses don't transfer automatically. The buyer may need their own. Check with the licensing agency early.
Are you a business broker?
No. We're a free matching service. We don't buy, sell, or appraise businesses. With your consent we pass your request to up to 3 local brokers or advisors.
Is this a formal valuation?
No. It's an educational estimate using common SDE multiples. A formal valuation or broker opinion looks at your actual financials, market, and comparable sales.