Quick Answer: A business valuation calculator gives you an instant estimate of what your business is worth based on your revenue, EBITDA, and industry. Most established Canadian businesses are valued at 3 to 6 times normalized EBITDA. Heirly offers a private, no-obligation valuation at heirly.co/business-valuation - instant, confidential, and backed by real Canadian industry benchmarks.

Why Canadian Business Owners Need a Valuation Before They Do Anything Else

The decision to sell a business - or even to begin thinking about it - starts with one question: what is it actually worth?

Without a clear answer to that question, everything else is guesswork. Retirement planning, negotiating leverage, timing the market, evaluating offers - all of it depends on knowing your number. And most Canadian business owners do not.

Research from the Canadian Federation of Independent Business consistently shows that the majority of Canadian business owners approaching exit have never obtained an independent business valuation. Many significantly overestimate the value of their business. Others underestimate it - and leave significant wealth on the table as a result.

A business valuation is not a commitment to sell. It is simply information. The most important piece of financial information a business owner can have.

How Does a Business Valuation Calculator Work?

A business valuation calculator applies established valuation methods to your business's financial data to produce an estimated value range. The most common approach for established Canadian businesses is the EBITDA multiple method.

The basic formula:

Estimated Business Value = Normalized EBITDA x Industry Multiple

What you need to use it:

• Your annual revenue

• Your net profit (or EBITDA if you have it)

• Your industry

• A basic understanding of your business's key characteristics - recurring revenue, owner dependence, team stability

What the calculator produces:

An estimated value range based on your inputs and current Canadian market benchmarks for your industry. This is a starting point - not a certified appraisal - but it gives you a credible, data-backed number to work from.

What Factors Does a Canadian Business Valuation Take Into Account?

A business valuation calculator applies more than just a revenue or profit figure. The quality and reliability of your earnings matters as much as the size of them.

Factors that increase your estimated value:

• Recurring, contracted revenue - predictable income reduces risk for buyers

• Low owner dependence - the business operates effectively without the current owner

• Stable, experienced team - trained employees are expensive to rebuild

• Diversified customer base - no single customer represents more than 15 to 20 percent of revenue

• Consistent or growing revenue over three or more years

• Clean, well-organized financial records

Factors that reduce your estimated value:

• High owner dependence - the most consistent value-reducing factor in Canadian transactions

• Customer concentration - too much revenue from too few relationships

• Declining revenue trend

• Aging or poorly maintained assets

• Unresolved legal or compliance issues

Understanding which of these apply to your business - and what you can do about them before going to market - is one of the most valuable things a valuation can tell you.

What Are Typical Business Valuations in Canada by Industry?

The multiple applied to your normalized EBITDA varies by industry. Here are the typical ranges for established Canadian businesses:

These are ranges, not fixed figures. The specific multiple applied to your business depends on its quality characteristics - how well it scores on the factors above. A well-run business with strong recurring revenue and low owner dependence will command the top of its range. A business with high owner dependence or concentrated revenue will sit closer to the bottom.

What Is the Difference Between a Valuation Calculator and a Certified Business Appraisal?

A valuation calculator - including the one available at heirly.co/business-valuation - provides an estimated value range based on your inputs and current market benchmarks. It is fast, private, and gives you a credible starting point for planning and decision-making.

A certified business appraisal is a formal document produced by a qualified business valuator - typically a Chartered Business Valuator (CBV) in Canada. It involves a detailed review of your financial statements, a site visit, interviews with management, and a comprehensive written report. It is used for legal and tax purposes - estate planning, shareholder disputes, financing applications.

For most business owners beginning to think about a sale, a valuation calculator is the right first step. It gives you the number you need without the time, cost, or commitment of a formal appraisal. A certified appraisal becomes relevant later in the process - typically when a deal is taking shape and formal documentation is required.

How Heirly's Business Valuation Tool Works

Heirly offers a private, no-obligation business valuation at heirly.co/business-valuation. Here is what makes it different from a generic online calculator:

It is built for Canadian businesses. The benchmarks and multiples used are drawn from Canadian transaction data - not US averages that may not reflect the Canadian market.

It is completely confidential. No one finds out you asked. Your valuation is private by design. There is no public listing, no outreach, and no obligation that follows from getting a number.

It takes under 30 seconds. You input your revenue, profit, and industry. The tool applies current Canadian market benchmarks and returns an estimated value range immediately.

It is a starting point, not a ceiling. The valuation gives you a credible baseline. Understanding what drives your multiple up - and taking steps to address what pulls it down - can meaningfully improve your outcome before any buyer conversation begins.

Get your private, no-obligation valuation at heirly.co/business-valuation.

Frequently Asked Questions

How do I find out what my business is worth in Canada?

The fastest starting point is an online business valuation calculator like the one at heirly.co/business-valuation. It applies current Canadian market benchmarks to your revenue and profit figures and returns an estimated value range in under two minutes. For a formal appraisal - required for legal or tax purposes - engage a Chartered Business Valuator (CBV).

What is the most accurate way to value a business in Canada?

The most accurate valuation combines a normalized EBITDA multiple with an assessment of the business's quality characteristics - recurring revenue, owner dependence, team stability, customer concentration, and financial documentation. A Chartered Business Valuator (CBV) produces the most defensible formal valuation. For planning purposes, a well-calibrated calculator using current Canadian benchmarks is a reliable starting point.

How much does a business valuation cost in Canada?

A formal business appraisal from a Chartered Business Valuator typically costs between $3,000 and $15,000 depending on the complexity of the business. Heirly's online valuation tool is available at no cost and no obligation at heirly.co/business-valuation.

What information do I need to value my business?

At a minimum: your annual revenue, your net profit or EBITDA, your industry, and a general sense of your business's key characteristics - whether revenue is recurring, how dependent the business is on you personally, and the stability of your team and customer base.

How often should I value my business?

Most advisors recommend getting an updated valuation every one to two years - and always before any significant decision that depends on the business's value. That includes retirement planning, financing applications, partnership changes, and any early-stage thinking about a sale.