Advanced Exit Value & Net Proceeds Calculator
Estimate the final, after-tax cash you will receive from selling your business. This calculator goes beyond a simple valuation by accounting for owner salary add-backs, transaction costs, and capital gains taxes to provide a realistic net proceeds figure.
Enter your business's financial data below. Tooltips provide more information for each field.
Enter Your Business Financials
Understanding the Key Concepts
What is Adjusted EBITDA?
Adjusted (or Normalized) EBITDA is often the most important number in a business sale. It starts with your standard EBITDA and adds back expenses that would not continue under a new owner. The most common "add-back" is the current owner's salary and discretionary benefits. This shows a buyer the true, underlying profitability of the business they are acquiring.
Adjusted EBITDA = Reported EBITDA + Owner Salary Add-Backs
What are Transaction Costs?
Selling a business involves professional fees. These typically include a success-based fee for the business broker or M&A advisor (often a percentage of the sale price), legal fees for drafting contracts, and accounting fees for financial due diligence. This calculator estimates these costs as a percentage of the Net Equity Value to deduct them from your proceeds.
A Note on Capital Gains Tax
The profit you make from selling your business is typically subject to capital gains tax. The rate can vary significantly based on your location (state and local taxes), your income level, and how the deal is structured (asset vs. stock sale). The rate you enter should be your best estimate of your combined tax liability. This is a critical area where you must consult a qualified tax professional.
Frequently Asked Questions
Calculation Examples
See how different scenarios affect the final net proceeds.
