If you own a business in South Florida, you have probably wondered what it would sell for. The honest answer: most owners either overestimate or underestimate their company’s value, because business valuation works differently than most people expect. Here is how buyers, lenders, and business brokers actually determine what your business is worth in 2026.

Start With Seller’s Discretionary Earnings (SDE)

Small and mid-sized businesses are not valued on revenue — they are valued on earnings. The starting point is your Seller’s Discretionary Earnings (SDE): net profit plus the owner’s salary, personal expenses run through the business, one-time costs, and other add-backs. A professional recast of your profit and loss statements often reveals significantly more earning power than your tax return shows. That recast number is what buyers pay for.

Apply the Right Market Multiple

Once SDE is established, the market applies a multiple that varies by industry, size, and risk. Restaurants, HVAC companies, medical practices, e-commerce brands, and professional services each trade in different ranges. The most reliable way to know your multiple is through comparable sales data — what similar businesses actually sold for in Florida — not rules of thumb from the internet.

What Drives Your Multiple Up (or Down)

Buyers pay premiums for businesses with clean financial records, a management team or staff that stays after closing, recurring revenue, a diversified customer base, and transferable systems. They discount heavily for owner dependence, customer concentration, declining trends, and messy books. The good news: most of these factors can be improved in the 12 to 24 months before you go to market.

Why Timing Matters in 2026

South Florida remains one of the most active business-for-sale markets in the country, with strong buyer demand from individual buyers relocating to Florida, search funds, and private equity groups seeking established companies. Well-prepared businesses with verified earnings are commanding strong valuations. Preparation, not luck, is what separates the businesses that sell from the ones that sit.

Get a Professional Opinion of Value

Before you list — or accept an unsolicited offer — get a confidential, data-backed opinion of value from a licensed business broker. John Diaz, Senior Business Broker with KW Business Sales / South Florida Business Sales, provides confidential business valuations using real comparable sales data from across Florida.

Thinking about selling your business? Call John Diaz at 844-456-4647 or visit SoFlaBusinessSales.com for a free, confidential consultation. Hablamos español.