Broker’s Opinion of Value
Test business
Effective 2026-09-19 · Fair Market Value · Going concern · Other / Diversified Small Business
Concluded total
$39,000
Range
$26,000 – $53,000
Equity value
-$25,000
Asking price
$40,000
Opinion / transmittal
At your request, Bridge Point Business & Real Estate Advisors has prepared this Broker’s Opinion of Value of Test business (Tampa, FL) as of 2026-09-19. The standard of value is Fair Market Value. The premise of value is Going Concern. The interest assumed is a 100% controlling, marketable interest in the operating business. Fair Market Value is the price at which the asset would change hands between a willing buyer and a willing seller in an arm’s-length transaction, with neither under compulsion and both having reasonable knowledge of relevant facts. We considered the Market, Income, and Asset approaches. Selected methods were weighted to the facts of this company. Concluded business enterprise value is $39,000, with a reconciled range of $26,000 to $53,000. Real estate is not included in the transaction. Total value (business + real estate) is $39,000 ($26,000–$53,000). Equity value after interest-bearing debt of $0 is -$25,000. This opinion is informational, prepared for Bridge Point marketing, negotiation, and internal planning. It is not a USPAP appraisal and should not be used for court, tax, ESOP, or credit decisions.
Executive summary
Test business is a other / diversified small business business in Tampa, FL generating $800,331 of latest-year revenue and $86,512 of weighted normalized SDE (10.9% margin). The concluded marketing range is $26,000 to $53,000. Recommended asking price is $40,000. Ask near midpoint. Diligence will pressure any premium until earnings quality is tighter. Primary value drivers: normalized cash earnings, other / diversified small business private-market multiples (2.80x SDE / 4.50x recast EBITDA), and a leasehold operating model without real estate.
Value range and asking price
Company
Test business operates in Other / Diversified Small Business. Entity type: LLC. Competitive advantages: Not provided. Key risks: Not provided.
Strengths
- Established local operator
- Normalized cash earnings
Risks
- Buyer diligence on add-backs
- Labor and lease inflation
Industry
Other / Diversified Small Business (NAICS 999999) currently trades, at the Main Street and lower-middle-market size of this company, at roughly 2.20x–3.40x SDE and 3.60x–5.40x recast EBITDA. Those bands are conservative private-market observations, not public-company comps. Buyer appetite remains intact for businesses with recurring service mix, documented add-backs, and transferable operations. Rate-sensitive or owner-centric models take a discount until diligence proves otherwise. This company is positioned as a solid operator that will be underwritten on earnings quality, not a story.
SDE multiple 2.20x–3.40x · EBITDA 3.60x–5.40x
Financial analysis
Latest-year revenue is $800,331 with gross margin of 96.0%. Reported EBITDA is $36,948. Normalized SDE is $86,950 after owner compensation of $50,000, discretionary add-backs of $1, and a rent recast of $1 (actual minus fair-market rent). Weighted normalized SDE across the history provided is $86,512. Recast EBITDA (after replacement manager compensation of $110,000) is -$23,489. These are the benefit streams to which multiples and capitalization rates are applied.
Revenue, gross profit, and SDE
Normalization bridge
Margin trend
History
| Year | Revenue | SDE | EBITDA | SDE % |
|---|---|---|---|---|
| 2023 | $834,205 | $86,073 | -$23,927 | 10.3% |
| 2024 | $834,205 | $86,073 | -$23,927 | 10.3% |
| 2025 | $800,331 | $86,950 | -$23,050 | 10.9% |
Points to consider
- Normalized SDE margin of 10.9% is below the Other / Diversified Small Business peer band (~14%). Buyers will underwrite cost-out or a lower multiple until this closes.
- Recommended asking price of $40,000 is a marketing position, not the expected close. Expect negotiation inside the concluded range.
Valuation analysis
Three approaches were applied and weighted. Market: SDE multiple of 2.80x produces $242,232. Recast EBITDA multiple of 4.50x produces -$105,698. Income: Discount rate of 25.3% (build-up: risk-free, equity premium, size, and company-specific risk) and cap rate of 22.8% produce a capitalized / DCF enterprise value of -$122,539. DCF terminal value is -$140,414. Asset: Adjusted net tangible assets of $0 set a floor and receive limited weight as a going concern. Reconciled business enterprise value is $39,000.
Approaches
DCF cash flows
| Method | Low | Indicated | High | Weight |
|---|---|---|---|---|
| Market — SDE multiple2.80x on weighted normalized SDE of $86,512. | $190,325 | $242,232 | $294,139 | 40% |
| Market — recast EBITDA multiple4.50x on weighted recast EBITDA of -$23,489. | -$84,559 | -$105,698 | -$126,838 | 20% |
| Income — capitalized cash flow & DCFCap rate 22.8%; discount rate 25.3%; long-term growth 2.5%. | -$111,878 | -$122,539 | -$130,429 | 30% |
| Asset — adjusted net tangible assetsFloor value. Going-concern goodwill sits above tangible assets. | $0 | $0 | $0 | 10% |
Real estate allocation
The company is a tenant. Rent of $1 is already in the expense base. No real estate is included.
Sensitivity to SDE multiple
Synthesis
After weighting the methods, the concluded range for the total transaction is $26,000 to $53,000, with a midpoint of $39,000. Equity value to the seller, cash-free and debt-free after $0 of interest-bearing debt, is -$25,000. Recommended asking price: $40,000. Ask near midpoint. Diligence will pressure any premium until earnings quality is tighter.
Business EV
$39,000
Real estate
$0
Debt deducted
$0
Recommendations
- Lock a quality-of-earnings package: add-back binder, customer concentration, and trailing-twelve-month recast before going to market.
- Document the management bench and transition plan so buyers do not invent a key-person discount.
- If related-party real estate exists, decide now: include it, sale-leaseback, or keep it. Ambiguity costs time in diligence.
- Price at the recommended ask, defend the midpoint with the normalization bridge, and be prepared to trade inside the range for certainty of close.
- Do not represent this opinion as a certified appraisal. Use it to list, negotiate, and plan.
Limiting conditions
- This is an informational Broker’s Opinion of Value for marketing, negotiation, and internal planning. It is not a USPAP appraisal and is not intended for court, tax, ESOP, or financing opinions.
- Conclusions rely on information supplied by the client, CRM, or uploaded documents. We did not audit or independently verify the financial statements.
- Market multiples are conservative private-market ranges, not a statistically sampled comp set from DealStats, GF Data, or a paid database.
- Engage a credentialed appraiser (ASA, ABV, CVA) when a formal standard of value is required, and a licensed commercial appraiser when real estate is material.
CRM folder: e1d88919-ccb0-4a81-8cc6-2af2e6af5276