Enter your assumptions

Enter earnings and base multiples to see a range.

How adjustments work

Each scenario shifts both ends of your entered multiple range by the amount shown. Positive adjustments add to the multiple; negative adjustments subtract from it. The selected adjustments are summed before applying the range to earnings.

Firm size: smaller scale −0.25x, no adjustment 0x, larger scale +0.25x.

Backlog coverage: under 6 months −0.25x, 6 to 12 months 0x, over 12 months +0.25x.

Recurring public-sector client share: under 25% 0x, 25% to 49% +0.10x, 50% or more +0.20x.

Key-person risk: high −0.25x, moderate −0.10x, low 0x.

Owner dependence: high −0.25x, moderate −0.10x, low 0x.

These adjustment amounts are transparent scenario assumptions for this calculator, not sourced market data, valuation guidance, or transaction evidence. Change them only as part of your own analysis.

Estimate limits

The result is a value range only. It is an estimate based on your inputs, not an appraisal or offer. It excludes debt, cash, working capital, taxes, deal structure, diligence findings, and other transaction terms. General education only, not engineering, legal, tax, or investment advice. Licensed PE judgment and local codes govern engineering work. Consult qualified transaction advisers.

Example scenario

A hypothetical civil engineering firm owner enters EBITDA of $2,000,000, base multiples of 4 and 6, and adjustment assumptions of +0.25, +0.25, +0.20, −0.10, and −0.10 for firm size, backlog, recurring public-sector share, key-person risk, and owner dependence. The calculator reports a total shift of +0.50x and a value range of $9,000,000 to $13,000,000. These are the owner’s hypothetical inputs, not market benchmarks or an appraisal. The range can help the owner frame an early conversation about whether a sale merits further study and what earnings basis and assumptions to examine. Before relying on it, check that EBITDA is defined consistently with the firm’s records, review each adjustment against actual operating conditions, and account for debt, cash, working capital, transaction terms, and diligence with qualified advisers.

Method, inputs and limits

Purpose

Build a value range from owner-entered SDE or EBITDA, user-entered base multiples, and visible scenario adjustments. This is the flagship sell-side calculator.

Inputs and defaults

Basis is SDE or EBITDA. Earnings are required, nonnegative USD. Low and high base multiples are required, nonnegative, with high at least low. No base multiple defaults are supplied; the input labels show example values of 3 and 5 only. Five selectable adjustments are applied: firm size (−0.25x, 0x, +0.25x); backlog months (under 6: −0.25x, 6 to 12: 0x, over 12: +0.25x); recurring public-sector client share (under 25%: 0x, 25% to 49%: +0.10x, 50% or more: +0.20x); key-person risk (high: −0.25x, moderate: −0.10x, low: 0x); owner dependence (same risk adjustments).

Formulas

Total shift = sum of five selected adjustments. Adjusted low multiple = max(0, base low + total shift). Adjusted high multiple = max(0, base high + total shift). Value low/high = earnings × adjusted low/high multiple. Adjustments are illustrative scenario assumptions, not sourced market data.

Outputs

Value range only, plus adjusted multiples. No single point estimate.

Checked cases

SDE $1,000,000, base multiples 3 and 5, adjustments 0, 0, 0, 0, 0: $3,000,000 to $5,000,000.
EBITDA $2,000,000, base multiples 4 and 6, adjustments +0.25, +0.25, +0.20, −0.10, −0.10: total +0.50x, $9,000,000 to $13,000,000.
EBITDA $500,000, base multiples 0.2 and 0.5, adjustments −0.25, −0.25, 0, −0.25, −0.25: total −1.00x, both adjusted multiples floor at zero, $0 to $0.

Disclaimer

Estimate only, not an appraisal, offer, engineering, legal, tax, or investment advice. Excludes debt, cash, working capital, transaction terms, and diligence. The adjustment amounts are transparent user scenarios, not market evidence. Licensed PE judgment and local codes govern engineering work. Consult qualified advisers.

Civil engineering firm value range