What multiple do UK small businesses sell for in 2026?

Owner-run UK small businesses typically sell for 1.5x to 3x seller's discretionary earnings (SDE), with 3x to 4x reserved for businesses that run without the owner and have recurring customers. For SMEs under management the UK200Group SME Valuation Index put the median EBITDA multiple at 4.5x in 2025, down from 5.5x in 2024, and MarktoMarket's nano-cap median was 3.9x. Headline private-company indices of around 10x EBITDA cover much larger deals and do not apply to owner-managed businesses.

Should I value my UK business on SDE or EBITDA?

Use seller's discretionary earnings (SDE) if you work full time in the business and a buyer would replace you as the operator. SDE adds back your whole salary, pension and personal costs. Use EBITDA if a manager runs the business, or would need to be hired: deduct a market-rate salary for that role before applying the multiple. The same business shows a higher SDE multiple and a lower EBITDA multiple, so never mix the two.

How is freehold property treated in a UK business valuation?

If the business owns its premises, the market value of the property is added on top of the trading goodwill. To avoid counting it twice, deduct a market rent from profit before applying the multiple, because a buyer who pays for the freehold would otherwise also be paying for rent-free profit.

How much Capital Gains Tax will I pay when selling my business in 2026/27?

For disposals from 6 April 2026, qualifying sellers pay 18% Capital Gains Tax under Business Asset Disposal Relief on the first £1 million of lifetime qualifying gains, after the £3,000 annual exempt amount. Gains above £1 million, and disposals that do not qualify, are taxed at the standard rates: 24% for higher-rate taxpayers and 18% within the basic-rate band. The rate was 14% for 2025/26. To qualify on a share sale you normally need at least 5% of the shares and voting rights, to be an officer or employee, and to have met the conditions for two years.

How much do UK business brokers charge compared with selling directly?

UK business brokers and transfer agents typically charge a success fee of 8% to 12% of the sale price plus VAT, often alongside upfront or marketing fees of £1,000 to £5,000 and a 12-month sole-agency period. On a £400,000 sale that is £32,000 to £48,000 plus VAT. Listing on NewOwner costs £99 a month on the Seller plan with no commission.

How accurate is this business valuation calculator?

It gives an indicative range, not a valuation. The ranges come from published UK SME indices and from broker and advisory guidance, and the position within the range is set by two answers about how the business runs. The price a buyer pays depends on the deal structure, the market at the time and what due diligence finds, so use the range to sense-check an asking price rather than to set one.

Free tool · 2026/27 tax year

What Is Your Business Worth?
UK Business Valuation Calculator

An indicative value from published UK sale multiples, what you would keep after Capital Gains Tax, and what a broker would charge. No sign-up.

Guide

How much is a business like yours worth?

Valuation methods, add-backs and deal structure, explained for UK owners who are thinking about selling.

Read the valuation guide

Indicative valuation

£120,000 – £240,000

Central estimate £144,000 at 1.8x SDE

1.5xlower part of the range for cafés, restaurants & takeaways3x

Adjusted profit (SDE): £80,000
Multiple appliedRange 1.5x–3x: 1.8x
Trading goodwill: £144,000
Estimated price: £144,000

What you keep after tax

BADR applies

Capital Gains Tax18% on the first £1m with BADR, 24% above: − £25,380
Net proceeds: £118,620

Assumes a share sale by a higher-rate taxpayer with no base cost, the £3,000 annual exempt amount and an unused BADR lifetime limit. 2026/27 rates.

Selling direct vs through a broker

Typical broker fee8%–12% of the price plus VAT: £13,824 – £20,736
NewOwner Seller planNo commission: £99/month

List your business

Indicative only, not a valuation. Benchmarks updated October 2026.

Method

How the Estimate Is Built

Step 1

Start from adjusted profit

Profit before tax, interest and depreciation, with the owner's salary and personal costs added back. Buyers call it SDE for an owner-run business and EBITDA once a manager is paid to run it.

Step 2

Apply the published range

Owner-run businesses typically sell at 1.5x–3x SDE. UK SME deals under management cluster around the published medians of 4.5x EBITDA (UK200Group, 2025) and 3.9x for the smallest deals (MarktoMarket, 2025).

Step 3

Place it within the range

How much the business depends on you and how much revenue repeats decide whether a buyer pays the lower or the upper end. The calculator moves the estimate within the range; it never adds a premium on top.

Step 4

Add assets, deduct tax and fees

Freehold property and stock are added at value. Capital Gains Tax uses 2026/27 rates: 18% with Business Asset Disposal Relief on the first £1m, 24% above. Broker fees are shown at the typical 8%–12% plus VAT.

Benchmarks

UK Business Sale Multiples in 2026

Transaction indices only cover larger SME deals. For owner-run businesses the sector ranges come from broker and advisory guidance, so treat them as orientation rather than a valuation.

4.5x

Median EBITDA multiple for UK SME deals

UK200Group SME Valuation Index 2025 (5.5x in 2024)

3.9x

Median EV/EBITDA for the smallest UK deals

MarktoMarket nano-cap index 2025 (3.3x in 2024)

1.5x–3x

Typical SDE range for owner-run businesses

UK broker and advisory guidance

Sector	Basis	Indicative range	What moves it
Cafés, restaurants & takeaways	SDE	1.5x – 3x	Owner labour is most of the profit; lease length and landlord consent decide the rest
Hair, beauty & wellness	SDE	1x – 2.5x	Revenue follows the stylist, not the premises
Garages & MOT centres	SDE	2x – 3.5x	DVSA approval is a genuine barrier to entry
Cleaning & facilities services	adjusted profit	1.5x – 5x	Contract length, notice periods and customer concentration decide where in the range
E-commerce & online	SDE	2.5x – 5x	Own traffic and repeat customers pull it up; dependence on one marketplace pulls it down
Care homes	EBITDA	4x – 8x	Property-backed, but registration, occupancy and fee mix add risk
Any other owner-run business	SDE	1.5x – 3x	Broad UK market range for owner-operated businesses
Any other business under management	EBITDA	3.3x – 6x	Span of published UK SME median multiples, 2021–2025

Sector rows are indicative ranges for owner-managed businesses, not transaction data. The two "any other" rows are the published ranges the calculator falls back on when a sector has no reliable benchmark.

Sources: UK200Group SME Valuation Index 2025 · MarktoMarket UK M&A Valuation Indices 2025 · HMRC helpsheet HS275: Business Asset Disposal Relief (2026) · GOV.UK: Capital Gains Tax rates and allowances · Fair Handover: UK business broker fees explained · NewOwner: UK business sale multiples by sector (2026)

Adjusted profit

Which Add-Backs Survive Due Diligence

Statutory net profit rarely shows what a business earns for its owner. Buyers value adjusted profit, but only evidenced add-backs get past their accountant.

Usually accepted

Documented, non-recurring or owner-specific costs.

Owner's salary, pension and NICs above a market-rate replacement, or all of it for SDE
Depreciation and amortisation
Interest on loans and finance that will be repaid at completion
One-off legal, restructuring or relocation costs with invoices to match
Personal vehicle, private medical and family payroll that stops after the sale

Usually rejected

Costs a buyer will still carry, or income nobody can verify.

Cash takings that do not reconcile with VAT returns and bank statements
Recurring marketing or software spend labelled as one-off
Below-market rent where you own the freehold and have not charged a market rent
Deferred repairs and compliance work needed to keep trading
Overtime and agency staff needed to deliver current turnover

What moves the price

Why Two Similar Businesses Sell at Different Multiples

The range for a sector is wide. These are the factors that decide whether a buyer pays the lower or the upper end of it.

Owner dependency

If quotes, scheduling and key clients run through you, the business is bought as a job. A team or manager that runs the day to day is the biggest single move up the range.

Repeat and contracted revenue

Maintenance agreements, retainers and subscriptions lower a buyer's risk and make bank funding easier. One-off sales do the opposite.

Customer concentration

One client making up a large share of turnover is a risk buyers price in, often by moving part of the price into deferred payment or an earn-out.

Lease and premises

For hospitality, retail, care and automotive, an assignable lease with years left, or a freehold, protects the goodwill you are selling.

Clean, reconcilable accounts

Management accounts that tie to Companies House filings, VAT returns and bank statements keep the headline offer intact through due diligence.

Licences that transfer

DVSA MOT authorisation, CQC or Ofsted registration and premises licences are barriers to entry, but they only add value if the buyer can take them over.

Guides

UK Business Valuation and Tax Guides

Written for owners preparing a sale, a management buyout or an acquisition.

How Much Is My Business Worth? UK Valuation Guide

UK SME valuation methods, asset backing and deal structuring in one place.

UK Business Sale Multiples by Sector (2026)

What the UK200Group and MarktoMarket indices show, and indicative SDE ranges by sector.

Normalised EBITDA for UK Sellers

How to prepare an add-back schedule that survives a buyer's accountant.

Business Asset Disposal Relief (BADR) 2026

How the 18% rate works from April 2026 and how to qualify before you sell.

How Buyers Value a UK Business

How private buyers and search funds stress-test cash flow and working capital.

NewOwner vs UK Business Brokers

What brokers charge, what you get for it, and when selling direct makes sense.

Common questions

UK Business Valuation FAQ

SDE versus EBITDA, freehold property, 2026/27 Capital Gains Tax and broker fees.

Know the Number? Sell Without Commission.

List on NewOwner for £99 a month, talk to buyers directly and keep the whole sale price.

Sell Your Business Read the Valuation Guide

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