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.
Escondido notes
Escondido has a big base of owner-run service and trade businesses: contractors, auto shops, landscaping and tree crews, restaurants, and family retail along Grand Avenue and the main corridors. A lot of those were started 20 or 30 years ago by owners now thinking about retiring. That's a common setup for a sale, and also a common trap. The business often depends on one person who knows every customer.
If that's you, the best thing you can do is start the handoff before listing. Put a lead person in front of customers, write down pricing and processes, and move key relationships off your personal cell. Buyers and their lenders pay noticeably more for a business that keeps running when you take a week off.
Many Escondido businesses also own or lease their buildings. If you own the real estate, decide early whether you'll sell it with the business or lease it to the buyer. Leasing it can give you steady income after the sale and lower the buyer's upfront cost, which can make the deal easier to finance.
Family-run businesses sometimes go to a child or an employee. Those transfers still benefit from a valuation, both for fairness and for taxes. Talk to a CPA before you set a price.
A worked Escondido example
Take an Escondido plumbing company with $900,000 in revenue, $110,000 in net profit, an owner draw of $90,000, and $15,000 in add-backs. SDE is $215,000. As a trades business with some repeat customers and an owner who's involved but has staff, the calculator suggests roughly $430,000 to $645,000. If the owner still runs every estimate and every big customer relationship, the range drops. If the business has service agreements and a lead tech who can run the day, it moves up.
Escondido checklist before you talk to a broker
- Gather three years of tax returns and profit and loss statements.
- List add-backs with receipts or a clear explanation.
- Write down who does what, including you.
- Review your lease or decide what to do with owned property.
- List equipment and vehicles with age and condition.
What Escondido buyers look like
Many buyers for Escondido businesses are individuals using SBA loans who want to run the business themselves. They care about steady cash flow, a team that stays, and a smooth handoff. Others are larger companies in the same trade expanding into North County. They care about customers, licenses, and staff.
Knowing which buyer fits your business helps price and package it. A broker can tell you which type is active in your industry right now.
Plan on a timeline of six months to a year from deciding to sell to closing, and longer if your books need cleanup. Starting early gives you room.
Questions Escondido owners ask us
Should I tell my employees I'm selling? Usually not until a deal is close. Brokers keep it confidential. Will a buyer keep my staff? Most want to, since staff are part of the value. What if I want to stay on part-time? Many buyers welcome that for a transition. Can I sell to my employees? Yes, through a direct sale or seller financing; a valuation helps set a fair price. How do taxes work? It depends on how the sale is structured (asset vs stock) and what's allocated to goodwill, equipment, and other items. Talk to a CPA before signing a letter of intent.
Escondido resources
Free advising through the Small Business Development Center network and SCORE San Diego can help you prepare, and a CPA can recast your books so a buyer sees true earnings. Talk to two brokers before signing with one; comparing their valuations and plans is the fastest way to see who knows your industry.
More detail: our full guide covers rules, questions to ask every bidder, and red flags that apply across the county.
Town guides
Questions
Should I sell my Escondido building with my business?
It depends on your goals. Leasing the building to the buyer can give you income and make financing easier for them. Selling both gives you a cleaner exit.
How do I make my business less dependent on me?
Train a lead person, document processes and pricing, and move customer relationships to business phone numbers and emails before you sell.
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.