When we started Baton, there were a lot of things we didn't know yet. But we were certain about one thing: our fundamental belief that every small business owner deserves to know the value of their business, and how it stacks up to competitors, not for thousands of dollars, but for free.

In my role at Baton, I spend a lot of time talking to small business owners and buyers, listening to their feedback, and finding ways to use it to improve our products. One question comes up again and again:

"It says it's 'free,' but what's the catch? A competitor charged me a few thousand dollars for a valuation. Are you trying to sell me something?"

So many of our experiences as business owners are fraught with marketing speak and misaligned incentives. I totally get the skepticism. That's why I wanted to address this question head-on, and give you real clarity on how and why our valuations are, and will always be, free for business owners.

How Much Does a Small Business Valuation Cost?

Traditional business valuations are expensive and often prohibitively so for small business owners. A certified business appraisal from a licensed professional typically costs $3,000 to $8,000 for a small business, and can run significantly higher for complex businesses or those going through legal proceedings like divorce or partnership disputes.

So why does a professional business valuation cost so much? The process is labor-intensive: a certified valuator audits your financials, applies one or more valuation methodologies, and produces a formal report that can hold up in court or due diligence. That rigor is worth paying for in certain situations, but for the vast majority of small business owners who simply want to know what their business is worth, it's overkill.

Why Are Baton's Business Valuations Free?

At Baton, we hold a fundamental belief that business owners deserve to be empowered with financial data they can use to make more informed decisions. To explain how we got here, we need to zoom out and look at the broader small business market.

The State of the Small Business Market

Small businesses make up nearly over half of US GDP and have added over 12.9 million jobs in the last 25 years. The U.S. truly runs on small businesses.

Yet today, 92% of small business exits end in closure. Not because their failing, but because the infrastructure to bridge the gap between retiring owners and new buyers has yet to exist at scale—and it starts with knowing your business's worth.

Imagine you're ready to sell a business you've owned for over 15 years, but have no idea how much it's worth. It would be tough to set a realistic listing price or feel confident going into negotiations. And many buyers do have access to market data and comparable listings that owners don't, which means the table is set unevenly from the start.

The real estate market suffered from the same problem for decades. Before the MLS, there was no central database for real estate data. That changed when Zillow and StreetEasy cracked it open for consumers, for free, leveling the playing field for homeowners overnight.

We're doing the same thing for small business owners. By making business valuation data free and accessible, we're giving owners the same tools the pros use.

How does Baton make it possible?

If free business valuations cost $8,000+ elsewhere, how can we offer them at no cost? Sounds counterintuitive, but hear us out.

We built Baton's business model around one principle: we make money when owners succeed. That alignment shapes everything, especially how we think about product.

Here's how it breaks down:

Know: It Starts with a Free Valuation

For owners who aren't thinking about selling anytime soon, simply knowing where you stand is a major unlock. Knowing what your business is worth isn't a one-time event; it's a pulse-check on business health. Tracking it over time, alongside other key metrics, tells a story.

It used to take real effort to check your credit score, until Credit Karma made it dead simple and free. We believe business owners should be able to track their company's value the same way.

How we make this possible: Our Know program offers free valuations for all business owners, plus paid upgrade options for those who need them, like a Certified Valuation for a legal process (divorce, partnership buyout) or an Opinion of Value. Most owners will never need these. For those who do, we work with a dedicated partner to provide them.

Grow: The Number Is Just the Beginning

Once an owner gets their valuation, the path opens up. Growth is designed for owners who want to increase their business's value, make smart investments, or prepare for a future sale.

Credit Karma built a multi-billion dollar business without charging users directly—instead making money through recommendations for products users were already looking for. Our Grow product works the same way, connecting owners with mission-aligned service providers who can help them get to the next level.

How we make this possible: If an owner works with one of our partners, we often receive a referral fee. Our team is never incentivized to optimize for partner revenue, and we don't set referral revenue targets. The best fit for each owner is always the priority.

Sell: On Your Terms

For owners who are ready to sell, or just starting to explore it, an unbiased, data-backed valuation is the foundation for a successful process. The leading cause of deals falling through today is misalignment around value. Starting with a market-based number that you can back up in due diligence changes that.

How we make this possible: While many brokers charge 10–20% of the sale price plus a non-refundable monthly marketing fee, we charge just 6% of the total sale price. Owners pay a $1K/month retainer for the first 6 months (which goes toward that 6%), with a no-retainer option available on request.

Baton will never pressure owners to sell before they're ready—owners always control their own destinies.

The Bottom Line on Business Valuation Costs

A traditional small business valuation costs thousands of dollars. For owners who need a certified appraisal for legal or transactional purposes, that investment can be worth it. But for the millions of small business owners who simply want to know what they've built—and make smarter decisions because of it—the high cost of traditional valuations has been a real barrier.

That's what we're changing. A traditional business valuation costs thousands of dollars and takes weeks. Ours is free, built on real market data and thousands of comps, and walked through by one of our experts at no cost to you. Whether you're thinking about selling, planning for the future, or just curious about where you stand, knowing your number is the first step. 

Frequently Asked Questions 

How much does it cost to value a business? A traditional business valuation from a certified professional typically costs between $3,000 and $8,000 for a small business. More complex businesses, or those requiring a valuation for legal purposes, can run $10,000–$50,000+. Online valuations—like Baton's—are available for free.

What are typical business valuation fees? Most certified business appraisers charge either a flat project fee or an hourly rate. Hourly rates typically range from $150 to $400 per hour depending on the appraiser's credentials and your business's complexity. Flat fees for small business valuations generally start around $3,000 and go up from there based on revenue size and industry.

Is a business valuation tax deductible? In many cases, yes. Business valuation fees may be tax deductible if the valuation was obtained for a legitimate business purpose, such as estate planning, a buyout, or charitable contribution. However, deductibility depends on your specific situation. We'd recommend consulting a CPA or tax advisor before assuming deductibility.

Do I need a certified appraiser to value my business? It depends on why you need the valuation. For legal proceedings—like divorce, partnership disputes, or estate planning—a certified appraisal from a licensed professional (ASA, CVA, or ABV credential) is usually required. For most other purposes, like understanding your market position, planning for a future sale, or tracking your business's health over time, a certified appraisal is unnecessary and expensive. 

What is the cost of a business valuation for an SBA loan? SBA lenders typically require a third-party business valuation for loans over $250,000 when the buyer and seller have a prior relationship. These appraisals generally cost $3,000–$7,000 and must be performed by a qualified, independent appraiser. For owners simply exploring financing options or preparing for a potential sale, Baton's free valuation can serve as a useful starting point before engaging a certified appraiser.

What are affordable business valuation alternatives? If you don't need a certified appraisal, there are several low-cost and free options worth exploring. Online valuation tools—including Baton—use real market data to generate estimates at no cost. t. For owners who want an objective, data-backed number without the high cost of a traditional appraisal, a free online business valuation is the most accessible starting point.

Is a free business valuation accurate? Yes! Baton's valuations are built on real market transaction data and use the same core methodologies (revenue multiples, SDE multiples) that professional appraisers apply to small businesses. For understanding your market position and making informed decisions, a free valuation is more than sufficient.