How Online Business Multiples Actually Work

A business sale price is usually expressed as a multiple of profit. At ExitSpring we quote an annual multiple applied to trailing-twelve-month (TTM) net profit.

The basic formula

Sale Price = Annual Net Profit x Multiple

A business earning $300,000/year at a 3.5x multiple would be priced at $1,050,000.

What moves the multiple?

• Growth trend — accelerating profit earns a premium.
• Age & stability — longer track records reduce risk.
• Diversification — of traffic, revenue and suppliers.
• Owner involvement — more passive businesses sell for more.
• Transferability — clean assets and documented SOPs matter.

Why annual (not monthly)?

Annual multiples smooth out seasonality and make listings comparable across categories. It's the standard buyers expect.