Profit margins typically range from 5-15%, sometimes higher for well-managed companies with strong recurring revenue. But margin alone doesn't determine what a business is worth — how much of that profit depends on the owner personally matters just as much to a buyer.

It varies by size and trade. Smaller, owner-operated businesses typically sell in the 2-4x profit range; larger, more established companies with $1M+ in profit can reach 5-8x or higher. Plumbing businesses tend to trade slightly lower than HVAC on average. The biggest swing factor within any of these ranges isn't revenue — it's how independent the business is from its owner.

Buyers aren't just paying for today's profit — they're paying for the confidence that profit continues after the sale. If pricing decisions, customer relationships, and daily operations all run through the owner personally, a buyer has to assume real risk that performance drops once that owner is gone. That risk gets priced in as a discount, commonly 10-40% of the business's value, sometimes more.

No. This is a rough, directional estimate meant to show you where you stand and what's driving your number — not a certified appraisal. A formal valuation involves a professional who reviews your actual financials, contracts, and market conditions in detail. This tool is a starting point for that conversation, not a replacement for it.

Usually not more revenue — reducing how much the business depends on you personally. Buyers consistently pay more for businesses with documented processes, a team that can operate without the owner in the room, and recurring revenue that isn't tied to any one relationship. That's also exactly what the Owner Dependency Score is built to measure.