How Much Is My Business Worth? A Las Vegas Owner Guide

Quick answer: Most small and lower middle market businesses in Las Vegas sell for a multiple of owner earnings, typically somewhere between two and five times Seller''s Discretionary Earnings depending on the industry, the size of the earnings, and how transferable the business is. You can get an estimated range for your own business free in about fifteen minutes.

The basic formula

Value equals owner earnings multiplied by a market multiple.

Owner earnings, or SDE, is your net profit plus the owner''s salary, plus depreciation and amortization, plus interest, plus one time and personal expenses that a new owner would not carry. A business showing sixty thousand in net profit on the tax return frequently has two hundred thousand or more in true owner earnings once those add backs are counted.

The multiple reflects risk and transferability. Buyers pay more for earnings they are confident will continue after you leave.

What pushes your multiple up

• Recurring or contracted revenue. Maintenance agreements, service plans, and repeat commercial accounts are worth more than one time transactions.
• A diversified customer base. No single customer above ten to fifteen percent of revenue.
• A management layer. A general manager or lead technician who runs daily operations without you.
• Documented processes. Written procedures, a real CRM or field service system, and clean job records.
• Clean, verifiable financials. Reviewed or compiled statements that match the tax returns.
• Growing revenue and stable margins over the last three years.
• An assignable lease with meaningful term remaining.

What pulls your multiple down

• Heavy owner dependency, where you personally hold the relationships or the license
• Customer concentration, where losing one account changes the business
• Financials that cannot be verified or that rely heavily on cash
• Declining revenue or eroding margins
• Deferred maintenance on equipment and vehicles
• A short lease with no option, or a landlord unlikely to consent to assignment
• Licensing that does not convey, which is common for Nevada contractors

Size matters too

Larger earnings command larger multiples. A business producing two hundred thousand in SDE draws individual owner operator buyers using SBA financing. A business producing a million or more draws private equity, family offices, and strategic acquirers who compete for it and pay more per dollar of earnings. This is why growing earnings before a sale often pays for itself twice, once through the higher earnings figure and again through the higher multiple applied to it.

Industry ranges in Southern Nevada

Ranges vary widely, but as a general orientation, skilled trades such as HVAC, plumbing, and electrical typically draw stronger multiples than general retail, because demand is nondiscretionary and the work is repeatable. Manufacturing and distribution with real assets and contracts sit higher again. Restaurants and single location retail usually sit lower and depend heavily on lease terms. Your actual number depends on the specifics of your business, not on the category alone.

What the number does not tell you

Your business value is not the same as your proceeds. From the sale price you subtract bank debt and equipment liens, any line of credit balance, brokerage and closing costs, and federal tax. Nevada has no state income tax on individuals, which helps, but the federal treatment depends on whether the deal is structured as an asset sale or a stock sale and how the purchase price is allocated. Two identical sale prices can produce very different checks.

Find your number

The Complimentary Business Analysis calculates your owner earnings year by year, applies your industry multiple, scores your value drivers, and returns a full report free. Start at usbizsales.com/in-depth-valuation or call Jennifer Franco at 702-848-4663 to talk it through.