How much is my Singapore SME worth? The honest valuation guide

The single most common question Singapore business owners ask when considering a sale: what is my business actually worth?

Every broker gives a different number. Every online calculator is a template with no context. Most owners have no reliable answer. Here’s the honest framework — the same one professional buyers actually use.

The anchor: adjusted EBITDA × industry multiple

The starting point is always Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation, Amortisation) multiplied by an industry-appropriate multiple.

Adjusted EBITDA = Net profit + Owner salary + One-off expenses + Non-cash items. This represents the true earning power of the business independent of the current owner.

Industry multiples (SG SME): F&B 3-5x, Retail 2-4x, Professional services 4-6x, Tech/online 5-8x, Franchises 3-4x, Healthcare (aesthetic) 4-6x, Education/tuition 4-6x.

Cross-check with revenue multiple

Sanity-check the EBITDA number against a revenue multiple. Typical SG SME revenue multiples: 0.4-1.0x for services businesses, 0.3-0.8x for retail, 0.5-1.2x for F&B, 0.8-2.0x for tech/online.

If your EBITDA-based valuation and revenue-based valuation are wildly different, one of them is wrong. Usually revenue is being flattered or EBITDA is being understated.

Add or subtract for lease

Below-market lease with 3+ years remaining: add 10-25% to valuation. Above-market lease or short remaining term: subtract 10-30%. This can single-handedly move an SG F&B business by SGD 100-300k.

Owner-dependency discount

If the business depends on you personally — you know every regular, you negotiate every supplier, you handle every crisis — apply a 20-30% discount. Buyers will demand it. If you have documented SOPs, a strong manager who can operate without you, and stable staff, no discount applies.

Growth or decline adjustment

Rapidly growing SME (25%+ YoY revenue growth 2 consecutive years): add 20-30%. Declining business (revenue down 10%+ YoY): subtract 20-40%. Flat business: no adjustment. Buyers price the trajectory, not the snapshot.

Real example

A neighbourhood SG cafe: SGD 800k annual revenue, SGD 150k net profit, SGD 60k owner salary. Adjusted EBITDA = SGD 210k. Apply 4x F&B multiple = SGD 840k anchor. Below-market lease with 4 years left: +15% = SGD 966k. Owner-dependent (no manager): -25% = SGD 724k. Flat revenue trajectory: no adjustment. Realistic valuation range: SGD 700k-750k.

Common mistakes owners make

Using industry rules of thumb (“cafes go for 3x revenue”) without understanding their business
Ignoring seasonality and trend
Forgetting to normalise rent and owner salary
Overweighting sentimental value (“I built this from nothing”)
Comparing to headline sale prices without understanding the deal structure behind them

Next steps

Ready to list your business? Post it on BizSales.sg — free, anonymous option, zero commission.

Want a candid second opinion on your specific number before you list? Email admin@bizsales.sg with your business type, revenue, EBITDA, and lease situation. No fee, no obligation.

Frequently asked questions

How do I calculate the value of my SME in Singapore?

Standard method: calculate adjusted EBITDA (net profit + owner salary + one-off items), apply a 3-5x multiple for most SMEs (higher for scalable/growing businesses, lower for owner-dependent ones), then adjust for lease value, staff continuity, and industry-specific factors.

What multiple should I use to value my business?

Typical SG SME multiples by category: F&B 3-5x adjusted EBITDA, retail 2-4x, professional services 4-6x, tech/online businesses 5-8x, franchises 3-4x. Multi-outlet chains with proven systems can add 1-2x.

Should I include my salary in the valuation?

Yes, if a buyer will replace you. Add your salary back to net profit to get ‘adjusted EBITDA’ — this represents what the business is truly earning independent of the owner. Buyers value this metric, not raw net profit.

What lowers my business valuation?

Key valuation killers: owner dependency (25-30% discount), declining revenue trend, short lease with no renewal, staff concentration (one person carrying revenue), customer concentration (>30% from one client), regulatory or compliance issues.

Do I need a formal valuation to sell my business?

Not for smaller transactions (under SGD 1M). For deals SGD 2M+, buyers often expect an independent valuation. Formal valuations from a certified valuer typically cost SGD 3,000-8,000.

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