Thinking about selling your business? Then you’re probably wondering how to price a business for sale in a way that actually attracts buyers – and doesn’t just sityou’re listing through the DIY package, there’s no commission when you sell. That gives you flexibility to reduce your asking price by 10%, on the market gathering digital dust.
Pricing a business for sale is part math, part psychology, and entirely about knowing what the market will actually support.
This guide will walk you through the process of pricing your business the right way: to sell fast, to serious buyers, and for maximum value.
Why Pricing Strategy Matters More Than Many People Realize
Many businesses fail to sell because they were priced incorrectly.
That doesn’t necessarily mean the asking price was too high (though that’s common). It means the price didn’t match the business’s actual performance – or didn’t match what buyers expect from similar listings. The result is the same: no interest.
Pricing correctly helps you:
- Increase visibility with qualified buyers
- Position your listing competitively
- Generate more offers
- Create leverage in negotiations
- Improve final deal terms
The price you choose signals how serious you are.
Serious buyers are savvy. They know market ranges. If your price isn’t aligned with profit, industry benchmarks, and buyer expectations, your listing will simply get ignored.
How Businesses Are Typically Valued
In most small business transactions, pricing is based on a multiple of earnings – typically SDE (Seller’s Discretionary Earnings) or adjusted EBITDA. That figure forms the foundation of the valuation, not projected upside.
One of the more common mistakes sellers make when pricing a business for sale is anchoring to future potential rather than actual performance.
Buyers may acknowledge your projections, but that’s not what they’re paying for. What matters most is how the business is performing today – and how it has performed historically.
Profit vs. Revenue Multiples
Here’s a cheat sheet for recommended multiples by business size:
| Revenue Range | Profit Multiple | Revenue Multiple |
| Under $100K | 3–4x | 1–3x |
| $100K–$1M | 3–5x | 2–3x |
| Above $1M | 3–6x | 2–4x |
Larger businesses tend to command higher multiples, assuming the fundamentals are strong. But these are ranges, not rules. Where you land depends on the quality of earnings and how transferable the business is to a new owner.
Industry-specific multiples:
- E-commerce: 2–4x profit
- Marketplaces: 2–3x profit
- Agencies: 1–3x profit
Recurring revenue models (like SaaS) can often justify higher ranges, assuming churn is low and retention is high.
What Impacts Your Business’s Valuation
Multiples are earned. If you’re aiming for the higher end of the range, it needs to be supported by clear, defensible fundamentals.
Buyers typically pay more for businesses with:
- High profit margins
- Strong year-over-year growth
- Low churn (in subscription-based models)
- Recurring or contractual revenue
- Clean financials
- Systems and SOPs in place
- A well-known or defensible brand
- Transferability to new ownership
These are the elements that reduce perceived risk and improve buyer confidence. In a competitive deal, they also create justification for a higher price.
The Quality-Price Matrix
If you’re unsure whether your price matches your business quality, the Quality-Price Matrix is a helpful reference.
| High Quality | Low Quality | |
| High Price | Strategic acquisitions | Overpriced, hard to sell |
| Low Price | Undervalued / off-market deals | Turnaround / distressed sales |
The ideal position is simple: a high-quality business priced at or slightly below market value. This is where serious buyers compete and where sellers maintain the most leverage.
From our experience selling online businesses, buyers tend to respond well to listings that feel like a good deal.
Pricing a business around 10% below market value often increases interest. It positions the business as attractively priced – without signaling distress. That simple adjustment can help generate more buyer activity, create competition, and lead to stronger offers.
If you’re listing through the DIY package, there’s no commission when you sell. That gives you flexibility to reduce your asking price by 10%, maintain the same net proceeds you’d expect with a broker, and improve your chances of attracting serious buyers early. The economics don’t change on your side – it just improves your position in the market.
Using Investors Club to Your Advantage
We’ll say it again because it’s important: Investors Club doesn’t charge commissions on DIY listings.
That means more flexibility in how you price your business.
By listing with us, you can:
- Price your business 10% below market to attract attention
- Keep the same net payout you’d get using a broker
- Close deals faster by appealing to more buyers in that underpriced-but-high-quality zone
- Maintain control and transparency throughout the process
And, if your business does not sell, you can still try going with a different platform, and/or a broker, because we also do not lock you in with any Exclusivity Agreements.
[Submit your business for sale here]
Wrapping It Up
Pricing your business for sale is not about squeezing out every last dollar. It’s about creating an irresistible package – one that signals value and encourages serious buyers to take action.
Want to sell smart?
List it right, price it right, and let your business do the talking.
And if you want to give yourself a competitive edge (without giving away 10% to a broker), you already know where to go – Investors Club.