What is My Business Worth?
Get a free, confidential, indicative valuation for your Alberta business in less than 5 minutes.
If you are an Alberta business owner thinking about selling, now or in the next few years, understanding what your business is worth is the first step. This free tool gives you an indicative valuation range based on your industry, normalized EBITDA, revenue quality, and the key factors buyers actually use to price a business. No obligation and strictly confidential.
Valuation at the lower mid-market level is driven by more than just your bottom line. Buyers look at how dependent the business is on you personally, the predictability of your revenue, the strength of your management team, and the quality of your financial and legal records. This tool walks you through each of those factors and shows you exactly how they affect your multiple.
You will need a general understanding of your revenue and expenses for your last fiscal year. The tool takes about 5 minutes to complete.
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Once you know what your business is worth, the next step is getting the deal terms right. Try our free Outsiders LOI Builder to generate a professionally structured Letter of Intent in minutes.
How the Business Valuation Calculator Works
The calculator uses normalized EBITDA, industry multiples, and business-specific factors to provide an indicative valuation range. Factors such as recurring revenue, customer concentration, owner dependence, growth, management strength, and financial reporting can influence the range.
The result is an estimate rather than a formal business valuation. The final amount a buyer may pay can also be affected by cash, debt, working capital, taxes, transaction structure, due diligence findings, and negotiated deal terms.
That gives Google and AI systems a clean passage to explain the tool without disturbing the content that already ranks. Methodology reviewed by Sebastian Elawny Mergers and Acquisitions Lawyer, Outsiders Law Last reviewed: July 2026
Free Alberta Business Valuation Calculator
Thinking of Buying or Selling a Business?
Whether you are 5 months or 5 years out, the best time to talk to us is now. Early planning means better tax outcomes, better multiples, and fewer surprises at closing.
Learn more about Selling Your Business in Alberta here.
An Alberta business valuation is influenced by more than revenue and earnings. Buyer demand, cash flow, industry concentration, owner dependence, recurring revenue, management depth, fair market value, and the quality of financial records can all affect the multiple applied during a transaction.
A calculator can provide a rough idea of what your business may be worth, but important strategic decisions should be based on a more comprehensive view of the company, the market and the proposed transaction. If you are preparing to sell your business, early advice can help identify issues that may affect value or the structure of the eventual deal.
Frequently Asked Questions
How is my business valued?
Most Alberta businesses in the $5M to $50M range are valued using a multiple of EBITDA (i.e. earnings before interest, taxes, depreciation, and amortization). The multiple applied depends on your industry, growth trajectory, revenue quality, management team strength, and a range of other factors. This tool applies industry-standard multiples (to the best of our knowledge) and adjusts them based on your specific inputs. This is one of several valuation methods that may be used during the process. Depending on the company, its assets and the available information, qualified advisors may also consider a discounted cash flow analysis, an asset-based approach or comparisons with similar businesses and recent transactions.
What is EBITDA and why does it matter?
EBITDA is a measure of your business's operating profitability before financing costs and non-cash charges. Buyers use it because it approximates the cash a business generates, independent of how it is financed or how aggressively it depreciates assets. For a sale, we use normalized EBITDA; meaning your EBITDA adjusted to replace your personal draw with a fair market salary for someone doing your job. This is the number that drives your purchase price.
What affects my multiple the most?
The five factors that most affect your multiple are: owner dependency (can the business run without you), revenue quality (how much is recurring or under contract), growth trajectory (is EBITDA growing, flat, or declining), management team strength (who runs the business if you leave), and customer relationship ownership (are clients loyal to you personally or to the business). This tool assesses all five. The valuation methods used take into consideration tangible assets, present value and future growth and it creates a target final value. Buyers may also consider the company’s market position, brand reputation, financial performance, customer concentration, intellectual property and potential for future growth. The weight given to each factor depends on the industry, the buyer’s objectives and the specific risks identified during due diligence.
How accurate is this valuation?
This valuation tool produces a rough indicative estimate based on publicly available market data and the inputs you provide. It is not a formal business valuation. While the tool uses industry-standard multiple ranges based on publicly available Canadian lower mid-market transaction data, it cannot replicate a full financial review or live market comparison. It is possible that the valuation tool may produce an erroneous outcome. The result is intended to provide a useful dollar amount and starting point, not a definitive fair market value. A formal business valuation may require a Chartered Business Valuator or another qualified financial professional to review the company’s financial records, business assets, liabilities, market position, potential risks and other external factors. Actual transaction values depend on current buyer demand, deal structure, due diligence findings, and live market comparables that this tool cannot assess. A proper valuation requires a full financial review and direct market comparison by qualified advisors.
What is normalized EBITDA?
Normalized EBITDA adds back your personal draw and replaces it with what it would cost to hire a qualified person to do your job at a fair market salary. It also removes non-recurring items (i.e. one-time expenses or revenues that won't repeat frequently). Buyers use normalized EBITDA because it reflects what the business actually earns on a sustainable basis, independent of how the current owner chooses to compensate themselves. This adjustment gives potential buyers a clearer picture of the company’s underlying financial performance and ongoing cash flow. For example, a business owner may pay themselves significantly more or less than the amount required to hire someone else to perform the same role. Personal expenses run through the company, unusually high compensation, or excess compensation paid to family members may also need to be reviewed when determining normalized EBITDA. Normalized EBITDA is often used as part of the valuation process because many valuation methods apply an earnings multiple to the company’s normalized earnings. The appropriate multiple can depend on many factors, including the company’s size, industry, growth prospects, customer concentration, market position, brand reputation, and current market conditions. Two businesses generating the same reported EBITDA may therefore have very different business value. A company with stable recurring revenue, strong margins, a capable management team and predictable future cash flows may attract a higher multiple than a business that depends heavily on its owner or has inconsistent earnings. Normalizing EBITDA helps both the seller and buyer work from a more realistic earnings figure when discussing what the business is worth. It does not determine the final sale price on its own, but it provides an important starting point for comparing the company with comparable businesses and assessing the value a buyer may reasonably be willing to pay.
What happens after I complete the tool?
Your results are displayed immediately on screen and emailed to you. If you are ready to start structuring your deal, try our free Outsiders LOI Builder to generate a professionally structured Letter of Intent in minutes. If you want to speak with an M&A lawyer about your valuation or next steps, book a free consultation with our team.
What is the Lifetime Capital Gains Exemption and does it affect my sale?
The LCGE allows Canadian business owners to shelter a significant portion of the capital gain on the sale of qualifying small business shares from income tax. In 2026, the exemption is approximately $1.275M per eligible taxpayer. The limit is indexed to inflation and adjusts annually, so this amount is expected to continue to rise. The qualification rules look at more than simply whether the company is a small business. The nature and fair market value of the corporation’s business assets are important, including how those assets have been used leading up to the sale. A business owner holding excess cash, investments, real estate or other assets that are not used principally in the active business may need to address those holdings well before the transaction. CRA’s qualification rules include both a test at the time of sale and requirements that apply throughout the preceding 24-month period. A business valuation can also be useful during this planning period. Understanding the current business value gives the owner and their advisors a clearer idea of the potential capital gain and how much of the available LCGE may be relevant to the transaction. Depending on the company, that assessment may consider tangible assets, intangible assets, financial performance, future cash flows, market conditions and other factors that contribute to the overall value of the business. In more complex situations, a chartered business valuator may be involved to provide an independent assessment. Structuring your corporation correctly, at least 24 months before a sale, is critical to qualifying. Outsiders Law advises on LCGE eligibility and pre-sale structuring as part of every transaction. Starting early can also give the company time to address potential risks before potential buyers begin their own review of the target company. That can include reorganizing certain business assets, dealing with passive holdings and making other strategic decisions intended to put the corporation in a stronger position for both the sale and the LCGE qualification tests.
How long does it take to sell a business?
For a lower mid-market transaction in Alberta, most processes take 6 to 18 months from the decision to sell through to closing. An M&A broker will likely tell you it takes 9 months to prepare your business for sale. A tax planner will tell you that you need at least 2 years to optimize your structure for tax purposes. A business advisor would tell you that you need at least 3-5 years to properly prepare your business for sale. Complex deal structures often result in longer closing processes. Starting your preparation at least 2 to 3 years before your target exit date is strongly recommended.
How long does it take to sell a business?
Businesses can be valued using several approaches. A market-based method compares the target company with comparable businesses or relevant transactions and applies appropriate valuation multiples. An income-based method, such as discounted cash flow, estimates the present value of expected future cash flows using a rate that reflects risk and the opportunity cost of investing elsewhere. An asset-based valuation examines the fair market value of the company’s tangible and intangible assets after considering its liabilities. The most appropriate method depends on the business model, financial performance, available market data, future growth prospects and the reason the valuation is being complete
What is a good EBITDA multiple for an Alberta business?
It depends heavily on your industry. Technology and SaaS businesses can command multiples of 5x to 10x (or occasionally as high as 16x). Professional services typically range from 3x to 5x. Trades, construction, and O&G services typically range from 2x to 4x. Within any industry, owner dependency, revenue quality, and growth trajectory can move your multiple by 1x to 2x in either direction. Valuation multiples may also change as market conditions, buyer demand and industry expectations evolve. A business with lower risk, recurring revenue, a capable management team and strong future growth prospects may attract more potential buyers and a higher multiple than a comparable business with greater owner dependence or inconsistent earnings.