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Countabl · Business Value Snapshot

Northwind Mechanical, LLC

Preliminary planning range — discussion only

Enterprise planning range (business operations)

$585,000$1,185,000

Base case: $845,000· Earnings × market multiple, before debt and cash

Conservative
$585,000
Base
$845,000
Upside
$1,185,000

Illustrative equity to owner(s) — for discussion

$380,000$980,000

Base case: $640,000

Enterprise value (base)$845,000
Less: outstanding debt$300,000
Less: transaction costs(10% of enterprise value)$85,000
Plus: excess cash+$180,000
Illustrative equity (base)$640,000

A negotiation starting point, not a fixed deduction. These items are subject to due diligence and deal structure.

Confidence

Moderate – High

7 of 8 signals present

Moderate – High
7 of 8 signals present

A working range for owner conversations — not a buyout price, not an offer.

Overview

Executive View

This Snapshot translates Northwind Mechanical, LLC's available financials and intake answers into a preliminary working range for an owner conversation. It is a starting point for discussion, not a buyout price.

Revenue

$2,400,000

Net income

$295,000

NOI

$360,000

Cash

$180,000

Planning range

$585,000$1,185,000base ~ $845,000

Evidence

Inputs Reviewed

DocumentUsedReliabilityKey limitation
Profit & LossYesHigh
Tax ReturnsYesHigh
Balance SheetYesMediumUnaudited; prepared in-house
Operating / Buy-Sell AgreementYesHigh

Missing items that would improve confidence

  • Accounts receivable aging detail

Financials

Financial Snapshot

Gross margin45.0%
Operating margin15.0%
Net margin12.3%
MetricValue
Revenue$2,400,000
Gross profit$1,080,000
Gross margin45%
Operating expenses$720,000
Net operating income$360,000
NOI margin15%
Net income$295,000
Net income margin12.3%
Cash$180,000
Accounts receivable$210,000
Current liabilities$140,000
Long-term liabilities$320,000

Methodology

Valuation Approach

Because owner compensation is documented, the primary earnings basis is Seller's Discretionary Earnings (SDE) — net income with owner compensation added back — the basis a buyer of an owner-operated business actually evaluates. The official range applies only the portion of owner compensation and other adjustments an analyst has reviewed and supported, so it stays conservative and defensible.

Earnings basis — Seller's Discretionary Earnings (SDE)

Reported net income$295,000
+ Documented owner compensation (salary, benefits, draws)$363,000
SDE — reference earning power$658,000

SDE reflects the total financial benefit to a single owner-operator — the basis most buyers of an owner-operated business evaluate. It is shown here as a reference. Your official range stays conservative: it applies only the portion of owner compensation and other adjustments an analyst has reviewed and marked Supported ($95,000 applied).

MethodRoleNote
Earnings multipleSupportingNet-income-to-NOI range, before owner-compensation add-backs — a conservative cross-check beneath SDE.
SDE multiplePrimaryOwner compensation is documented; SDE adds it back to reflect total owner benefit — the standard basis for owner-operated businesses.
EBITDA multipleCautiousOnly where EBITDA components are clearly available.
Revenue multipleCross-checkSanity check against earnings-based range.
Asset-value floorSecondaryConsidered as a floor, not a primary driver.
DCFExcludedExcluded unless forecast/pipeline data is available.

Scenarios

Scenario Range

CaseEarnings baseMultiplePreliminary value
Conservative$390,0001.50×$585,000
Base$423,0002.00×$846,000
Upside$455,0002.60×$1,183,000

Earnings base is a rounded range between net income and NOI; multiples reflect a preliminary planning view and are adjustable with verification.

Multiples are adjusted for your stated sector (Personal & Home Services). Multiples used here are broad planning placeholders reflecting general small-business ranges, adjusted by your stated industry. They are not drawn from a licensed transaction database and are not industry-specific transaction multiples. They are intended for preliminary discussion only and should be validated against current market data before any decision.

Adjustments

Normalization Review

The Snapshot surfaces potential adjustments but does not apply them silently.

How earnings were normalized (official)

Reported earnings (range)$295,000 – $360,000
+ Supported adjustments$95,000
Normalized earnings used in valuation$390,000$455,000

The official planning range is built only on Supported adjustments.

ItemAmountSupport levelIn official range?
Owner salary above market replacement$70,000SupportedApplied
One-time legal settlement (2023)$25,000SupportedApplied
Personal vehicle & travel$18,000PossibleSurfaced only

Ownership

Owner Equity Breakdown

The table and chart below translate the equity value range into each owner's preliminary share based on their recorded ownership percentage. Equity value reflects the enterprise range adjusted for the debt and cash bridge entered by the analyst.

Alex RiveraManaging partner
60.0%
$228,000$384,000$588,000
ConservativeBase caseUpside
Jordan LeeOperations partner
40.0%
$152,000$256,000$392,000
ConservativeBase caseUpside
OwnerOwnership %ConservativeBase caseUpsideNotes

Alex Rivera

Managing partner

60.0%$228,000$384,000$588,000active in ops · customer-tied · post-exit: Stays 12-month transition

Jordan Lee

Operations partner

40.0%$152,000$256,000$392,000active in ops · post-exit: Departing

Operating / buy-sell agreement on file

An agreement was uploaded for this project. The actual payment structure, valuation formula, transfer restrictions, and any minority discount provisions in that document govern a real transaction — they may differ from the pro-rata percentages shown above.

These allocations are mathematical illustrations based on ownership percentage only. Actual proceeds depend on the agreed enterprise value, debt/cash treatment, transaction costs, taxes, and any agreement-specific provisions.

Buyout context

Partner Buyout Lens

  1. 1
    Cash: Is cash included, excluded, or partly retained as working capital?
  2. 2
    Debt: Confirm liabilities, taxes, credit cards, and owner advances.
  3. 3
    Owner role: Does the departing owner control revenue, clients, or operations?
  4. 4
    Owner comp: Normalize salary, benefits, draws, and replacement cost.
  5. 5
    Agreement terms: Does an operating or buy-sell agreement control the process?
  6. 6
    Structure: Discuss cash at close, seller note, installments, earnout, financing, or a formal valuation step.

Risk factors

Risk and Value Drivers

Could move range higher

  • Verified owner-compensation add-backs
  • Stronger current-year revenue/profit trend
  • Low customer concentration
  • Recurring revenue
  • Low owner dependency
  • Clean GL support

Could move range lower

  • Prior year was unusually strong
  • Revenue leaves with departing owner
  • High customer concentration
  • Churn risk
  • Bad debt or collections issues
  • Unrecorded debt/taxes
  • Weak records

Next steps

Recommended Workflow

  1. 1Upload missing documents
  2. 2Complete owner intake
  3. 3Review assumptions with Countabl
  4. 4Tighten range after verification
  5. 5Engage legal, tax, valuation, or transaction advisors before binding decisions

Disclaimer

Limitations

This Business Value Snapshot is a preliminary financial planning and discussion tool based on the documents and assumptions available. It is not a certified valuation, appraisal, fairness opinion, legal opinion, tax opinion, investment advice, or transaction advisory report. It should not be used for court proceedings, tax reporting, SBA lending, litigation, formal transaction reliance, or any purpose requiring a certified valuation professional. The preliminary value range may change materially as additional financial, legal, tax, lending, operational, or ownership information becomes available. Owners should consult qualified legal, tax, lending, valuation, and transaction advisors before making binding decisions.

Generated 6/8/2026, 6:34:52 PM · Countabl · Preliminary planning-grade estimate — not a certified appraisal.

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