Las Vegas Business Sales
Page 1
Confidential | Complimentary Business Analysis
Section 1 of 6
Executive Summary
Key metrics and value scorecard for Sample Services Company.
Estimated Value
$2,570,000
Estimated range: $1,965,000 to $3,170,000
Owner Earnings (SDE)
$604,207
Weighted across 2023, 2024, and 2025
Applied Multiple
4.25×
Range: 3.25× to 5.25×
SBA Financeability
Possible with a seller note or a larger down payment
After buyer salary 1.23× · before 1.63×
FF&E / Asset Value
$250,000
Included in business transfer
Most Likely Buyer
Owner Operator
Buyer who runs the business day to day
Value Driver Scorecard
SBA Financeability
Possible
Customer Diversification
Not scored
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Transferability
Not scored
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Owner Dependency
Not scored
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Financial Verification
Needs Review
Documentation (SOPs)
Not scored
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What Increases Value
✓ Strong owner earnings: $604,207 weighted SDE
✓ Recurring revenue of about 35% of sales
What May Reduce Value
⚠ Financials are owner reported and not yet CPA verified
Deal Notes Based on Your Answers
Inventory: $90,000 reported. Confirm whether it sits inside the price or is paid at closing.
Typical timeline: Most Las Vegas businesses in this size range take 6 to 12 months from listing to closing, longer when SBA financing and licensing transfers are involved.
Recommended Next Steps
1
Verify Financials with a CPA
CPA reviewed or compiled statements increase buyer confidence and satisfy SBA lender requirements. This single
2
Document Standard Operating Procedures
If your procedures are not written down yet, this is the place to start. Written procedures for service delive
3
Define Your Transition
If you have not settled on this yet, decide early. Put in writing how long you will stay, in what role, and at
4
Provide Current Year YTD Financials
Current year performance affects buyer confidence and may support a higher multiple.
Las Vegas Business Sales
Jennifer Franco · usbizsales.com
Las Vegas Business Sales
Page 2
Confidential | Complimentary Business Analysis
Section 2 of 6
Revenue Trends & Owner Earnings
Three year financial performance and step by step SDE derivation. All figures from owner provided records.
Revenue vs. Owner Earnings (SDE), 3-Year Trend
| Year | Revenue | YoY | Net Profit | SDE | Margin |
|---|
| 2023 | $2,700,000 | . | $330,000 | $530,710 | 20% |
| 2024 | $2,950,000 | ▲ 9% | $380,000 | $591,093 | 20% |
| 2025 | $3,200,000 | ▲ 8% | $420,000 | $641,475 | 20% |
| Weighted SDE | $604,207 | . |
Weighted across 2023, 2024, and 2025. Figures are exactly as reported. Nothing is estimated from another year.
SDE Derivation: 2025 (Base Year)
Net Profit (Before Tax)
$420,000
+ Owner Compensation
$150,000
+ Employer Payroll Tax on Owner Wages
$11,475
Owner Earnings (SDE), 2025
$641,475
Weighted SDE Calculation
| Year | SDE | Weight | Contribution |
|---|
| 2023 | $530,710 | 20% | $106,142 |
| 2024 | $591,093 | 30% | $177,328 |
| 2025 | $641,475 | 50% | $320,738 |
| Weighted SDE | $604,207 |
Only years with their own figures are weighted. The remaining weights are renormalized so the contributions add up to the weighted SDE shown.
Las Vegas Business Sales
Jennifer Franco · usbizsales.com
Las Vegas Business Sales
Page 3
Confidential | Complimentary Business Analysis
Section 3 of 6
Valuation Scenarios
Three scenarios using the Weighted SDE of $604,207 and the applied multiple range.
All scenarios use the Weighted SDE: $604,207. Weighted across 2023, 2024, and 2025. The base multiple of 4.25× comes from the hvac category, which is where the business you described falls. Source: Industry Benchmark v1 (First Page Sage Q1 2025 / IBBA Q3 2025). A premium of 0.25× was added for recurring revenue. These are category ranges rather than verified comparable sales for your specific business. A broker review of recent Las Vegas transactions in your trade will tighten this considerably.
Conservative
$1,965,000
$604,207 × 3.25×
Quick sale, limited buyer competition, or seller concessions required.
Estimated Value
$2,570,000
$604,207 × 4.25×
Most likely outcome in a professionally marketed sale with qualified buyers.
Current Estimate
Optimistic
$3,170,000
$604,207 × 5.25×
Strategic buyer, competitive bidding process, and favorable market timing.
$2,570,000
→ + $600,000 potential →
$3,170,000
| Scenario | Multiple | Indicated Value | Key Driver |
|---|
| Conservative | 3.25× | $1,965,000 | Buyer applies risk discount; seller may need to concede on price |
| Most Likely | 4.25× | $2,570,000 | Standard market comparable for this industry and size |
| Optimistic | 5.25× | $3,170,000 | Verified financials, documented operations, competitive environment |
How Two Types of Buyer See This
Owner operator buyer
Runs the business day to day and takes a salary out of it. They compare $604,207 of owner earnings against a $150,000 salary plus debt service, so their offer is driven by what is left after both. Most SBA backed buyers fall in this group.
Investor or absentee buyer
Keeps a manager in place instead of working in the business. They value earnings after a full manager salary, roughly $454,207 here, so they pay more when the business already runs without the owner and less when it does not.
Computed for planning purposes. This estimate is based on self reported information that has not been independently verified. The Most Likely scenario reflects current market conditions for comparable businesses. Buyer due diligence may adjust this range.
Las Vegas Business Sales
Jennifer Franco · usbizsales.com
Las Vegas Business Sales
Page 4
Confidential | Complimentary Business Analysis
Section 4 of 6
Buyer Profile & SBA Financing
Most likely buyer types, what they evaluate, and estimated SBA loan structure at the expected value.
Primary Buyer
Owner Operator
SBA EligibleMost Likely
Why They Would Buy
- ✓ Strong, consistent owner earnings ($604,207)
- ✓ SBA financeable with a low down payment to acquire
- ✓ Established business with recurring customer base
Potential Deal Concerns
- ⚠ Financials not CPA reviewed, which triggers SBA scrutiny
- ⚠ No documented SOPs, which raises transition risk concerns
Secondary Buyer
Strategic / Competitor
Cash / Faster Close
Why They Would Buy
- ✓ Geographic expansion into established territory
- ✓ Acquires trained workforce and customer relationships
May pay 10 to 20% above market for strategic fit. Less reliant on SBA and can move faster with a cash offer.
Unlikely Buyer
Private Equity / Search Fund
- ⚠ SOPs and documented systems required, currently missing
- ⚠ Deal size below the threshold most private equity funds pursue
SBA Financing Estimate at $2,570,000 Purchase Price
| Estimated Value (Business) | $2,570,000 |
| Weighted SDE | $604,207 |
| Less: buyer salary assumption | ($150,000) |
| FF&E / Asset Value | $250,000 |
| Buyer Down Payment (10%) | $257,000 |
| SBA 7(a) Loan Amount | $2,313,000 |
| Est. Interest Rate | 10.25% |
| Loan Term | 10 Years |
| Est. Monthly Payment | $30,888 |
| Est. Annual Debt Service | $370,651 |
1.23×
Coverage after buyer salary (SBA threshold 1.25×)
0×1.25×4×
Possible with a seller note or a larger down payment
Coverage before buyer salary: 1.63×
Coverage after buyer salary: 1.23×
How the coverage figure works: Owner earnings first have to pay the person running the business. Coverage before a buyer salary is 1.63×. After deducting the $150,000 buyer salary assumption it is 1.23×, and lenders underwrite the second figure. SBA loans require about 10% down ($257,000), which widens the pool of buyers who can compete for a business at $2,570,000.
Las Vegas Business Sales
Jennifer Franco · usbizsales.com
Las Vegas Business Sales
Page 5
Confidential | Complimentary Business Analysis
Section 5 of 6
How to Increase Business Value
Prioritized improvements based on your specific business profile. Highest impact actions listed first.
Current Estimated Value
$2,570,000
At 4.25× with current risk factors
→
Potential After Improvements
$3,170,000+
At 5.25× with verified financials & documented operations
1
Verify Financials with a CPA
CPA reviewed or compiled statements increase buyer confidence and satisfy SBA lender requirements. This single step can improve your applicable multiple by 0.25 to 0.50×.
High Impact
2
Document Standard Operating Procedures
If your procedures are not written down yet, this is the place to start. Written procedures for service delivery and customer communication show buyers the business can run without you, reducing the key person discount.
High Impact
3
Define Your Transition
If you have not settled on this yet, decide early. Put in writing how long you will stay, in what role, and at what cost. Buyers and lenders price this in.
High Impact
4
Provide Current Year YTD Financials
Current year performance affects buyer confidence and may support a higher multiple.
Moderate
5
Plan the Nevada Contractor License Transfer
An NSCB license does not convey with the sale. The buyer needs their own license or a qualified employee. Planning this early keeps qualified buyers in the deal.
High Impact
6
Set the Inventory Treatment
You reported $90,000 of inventory. Decide up front whether it is included in the price or paid for at closing, and keep counts current.
Moderate
Las Vegas Business Sales
Jennifer Franco · usbizsales.com
Las Vegas Business Sales
Page 6
Confidential | Complimentary Business Analysis
Section 6 of 6: Appendix
SDE Schedule, Methodology & Verification Checklist
Detailed add back schedule for all years, valuation methodology summary, and due diligence preparation guide.
SDE Reconstruction, All Years
| Line Item | 2023 | 2024 | 2025 |
|---|
| Total Revenue | $2,700,000 | $2,950,000 | $3,200,000 |
| Net Profit (as reported) | $330,000 | $380,000 | $420,000 |
| + Owner Compensation | $140,000 | $145,000 | $150,000 |
| + Employer Payroll Tax on Owner Wages | $10,710 | $11,093 | $11,475 |
| Total Add Backs Used | $50,000 | $55,000 | $60,000 |
| Owner Earnings (SDE) | $530,710 | $591,093 | $641,475 |
Add backs are counted only in the years they were actually provided for. A year with no add back detail of its own is shown as "not provided" and is excluded from the weighted SDE rather than estimated from another year. The employer payroll tax line applies Social Security up to the annual wage base plus uncapped Medicare, so it is normally below 7.65% of total owner wages. All figures are owner reported and have not been independently verified.
Due Diligence Preparation: Priority Items
High
3 Years P&L Statements
Primary document buyers and SBA lenders review to verify income.
High
3 Years Business Tax Returns
Confirms P&L accuracy; reveals discrepancies buyers will probe.
High
Current Year YTD P&L
Buyers want current performance to avoid deal price renegotiation.
High
FF&E List with Values
SBA collateral requirement; buyer needs to know what transfers.
Med
Customer List (Top 10)
Concentration risk is top buyer concern, one large customer = deal risk.
Med
Bank Statements (12 mo)
Validates cash flow matches reported revenue; SBA lender standard.
Valuation Methodology
These reports use a weighted SDE multiple approach, the industry standard for owner operated businesses in the $500K to $5M value range. Consistent with SBA 7(a) lender underwriting standards, M&A broker market practice (IBBA standards), and Business Valuation Resources (BVR) transaction data. The 50/30/20 weighting gives greater importance to more recent performance.
This method does not include: DCF / discounted cash flow, asset based valuation, revenue multiples, or comparable company analysis. A formal appraisal by a Certified Business Appraiser (CBA) may differ from this estimate.
Disclosure: All financial figures are owner reported and have not been independently verified by Las Vegas Business Sales. A prospective buyer should request source documentation during due diligence. This report does not constitute a USPAP compliant business appraisal.
Cross Check: Adjusted Earnings View
Buyers who will not run the business day to day, and lenders stress testing a deal, restate owner earnings after paying a market rate manager. Applied here as a second opinion on the primary SDE multiple result.
| Weighted Owner Earnings (SDE) | $604,207 |
| Less: market rate manager salary (assumption) | ($150,000) |
| Adjusted Earnings (EBITDA proxy) | $454,207 |
| Capitalized at 25% (equivalent to 4.0× earnings) | $1,816,828 |
Primary SDE multiple result: $2,570,000. Cross check result: $1,816,828. Where the two are close, the estimate is well supported. Where they diverge, an owner operator buyer and a passive or strategic buyer will value this business differently, which is a conversation worth having before you set an asking price. Stress tested debt coverage using adjusted earnings rather than full SDE: 1.23×.
The manager salary is a standard assumption, not a figure you reported. A discounted cash flow analysis is not included and is generally reserved for larger transactions with formal projections.
What We Cover On Your 20 Minute Review
This analysis answers what your business is likely worth. The following require your specific debt balances, lease terms, tax position, and current Las Vegas buyer activity, so they are covered live on a call rather than estimated by a model:
- Net proceeds: what you actually walk away with after debt payoff, broker fee, closing costs, and taxes.
- Deal structure: cash at close, seller note, earnout, escrow, and working capital treatment.
- Nevada specifics: NSCB contractor license transfer, liquor and gaming approvals, and lease assignability.
- Local comparable sales: anonymized Las Vegas transactions in your sector and how they price.
- Inventory and working capital: whether your inventory sits inside the price or on top of it.
- Timeline and confidentiality: how long a sale realistically takes and how employees and customers are protected.
Ready to Talk Through Your Numbers?
Book a free 20 minute review with Jennifer Franco to walk through what this analysis means for your sale, confidentially and with no obligation.
Important. Please Read
This report is an automated estimate generated by artificial intelligence using only the information you provided. It is not an appraisal, not a formal opinion of value, and not financial, legal, tax, or lending advice. It has not been reviewed, verified, or endorsed by Jennifer Franco, Nonnie Group, or any licensed business broker, appraiser, accountant, or lender. Actual value and financing results may differ materially. Do not rely on this report to make any decision about buying, selling, or financing a business. Receiving this report does not create a broker, agency, or client relationship. By using this tool you release Jennifer Franco, Nonnie Group, Las Vegas Business Sales, and USBizSales.com from any liability arising from your use of or reliance on this report.
Las Vegas Business Sales
Jennifer Franco · usbizsales.com