In this guide
- Online calculators cost nothing and give an indicative range, not a number you can defend.
- A written valuation for an SME sale typically costs from about S$3,000 to S$10,000.
- Formal reports for court, tax, audit or disputes cost more, because of the standards and liability involved.
- The fee rises with the number of companies, the state of the records, the assets involved and the purpose.
- A free valuation from a broker is often part of winning your listing. Ask how the number was built.
The four kinds of valuation, and what each costs
| Type | What you get | Typical cost | Good for |
|---|---|---|---|
| Online calculator | An indicative range from your figures and sector multiples | No cost | A first sense check |
| Broker’s opinion of value | A price, often verbal or a short letter | Usually no fee | A view of the market, with caution |
| Written valuation from an adviser or accountant | Normalised accounts, the method, a value range and the workings | About S$3,000 to S$10,000 for most SMEs | Planning a sale, negotiating with a buyer, partner buyouts |
| Formal valuation report | An independent report prepared to recognised standards, which third parties can rely on | Usually more, depending on scope | Court, tax, audit, financial reporting and disputes |
Fees vary by provider and by business, so treat these as a guide and ask for a written quote.
What drives the fee
- Purpose and who will rely on it. A report for a court, a regulator or a minority shareholder carries more scrutiny and more liability than one prepared for you alone.
- Structure. A group with several companies, or a business with overseas operations, takes longer than a single company.
- The state of the records. Clean accounts and management figures shorten the work. Missing records lengthen it.
- Assets that need separate valuers. Property, specialised equipment and intellectual property may need their own valuations.
- Urgency. A short deadline usually costs more.
Why a free valuation can cost you more
Some brokers offer a free valuation to win the listing. The risk is a number set high to get your signature, which then sits on the market for months while buyers walk away. That costs far more than a fee: it costs time, confidentiality and negotiating position.
Whoever values your business, ask how the number was built: which profit figure, which adjustments, which multiple, and which comparable deals support it. If the answer is a single figure with no workings, treat it as an opinion, not a valuation.
What a good written valuation includes
- Three years of accounts, restated to normalised EBITDA, with each adjustment explained.
- The method, usually a multiple of normalised profit, cross-checked against owner’s earnings or net tangible assets where they matter.
- The multiple, supported by comparable transactions, such as those on our valuation multiples page.
- A value range, not a single number, with the reasons for the high and low ends.
- The bridge from enterprise value to the cash you would receive: debt, surplus cash and working capital. See our guide to working capital and net debt.
- The risks a buyer will price in, and what would lift the value.
Which valuation do you need?
- Thinking about selling in the next one to three years: start with a calculator, then a written valuation once you are serious, so you have time to act on what it shows.
- A buyer has approached you: get a written valuation before you discuss price, so you are not negotiating against the buyer’s number.
- A partner is leaving: a written valuation is often enough if you agree; a formal report helps if the price may be contested.
- Tax, court, audit or financial reporting: use a formal report from a qualified independent valuer.
How to keep the cost down
Have these ready before you ask for quotes: three years of financial statements, current-year management accounts, a list of owner and one-off costs with evidence, a fixed asset list, your lease and key contracts. Be clear about the purpose, ask for a fixed fee in writing, and ask exactly what the report will contain.
What Clearmere charges
Our written valuation is built from your accounts under NDA and led by Benjamin Tan. It is a fixed fee from S$3,000, agreed in writing before we start, and credited in full against our success fee if you sign with us within six months and the sale completes. Our fees page sets out the full terms.
Questions owners ask
How much does it cost to value a small business in Singapore?
An online calculator costs nothing. A written valuation for an owner-operated SME planning a sale typically costs from about S$3,000 to S$10,000, depending on the structure and the state of the records. Formal reports for court, tax, audit or disputes usually cost more.
How long does a business valuation take?
A written SME valuation usually takes a few weeks once the accounts and supporting documents are in. Formal reports, groups with several companies and businesses with incomplete records take longer.
Do I need a valuation before selling my business?
You do not have to have one, but it helps. A written valuation tells you what buyers are likely to pay, which adjustments they will make and what would lift the price, before you meet anyone. It also stops you anchoring on a number that the market will not support.
Can I value my business myself?
You can get a reasonable indication. Work out your normalised EBITDA, apply a multiple from comparable Singapore deals, then adjust for debt and surplus cash. Our valuation calculator does this in two minutes. A written valuation adds the judgement on adjustments and multiples that buyers will test.