A main-street business in Nebraska typically sells for 1.5 to 2.5 times the owner's true annual earnings. Nebraska's twist is judicial, not bureaucratic: its courts refuse to rewrite a flawed non-compete, and its tax rules tell your buyer to sit on part of the price until you prove the state is paid.
Your tax returns almost always prove a higher number.
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| Business type | Revenue multiple | Owner-earnings (SDE) multiple |
|---|---|---|
| Hair salon / Barbershop | 0.35 to 0.65 times yearly revenue | 1.5 to 2.5 times owner earnings |
| Cleaning service | 0.5 to 0.9 times yearly revenue | 1.8 to 2.8 times owner earnings |
| Landscaping / Lawn care | 0.45 to 0.85 times yearly revenue | 1.8 to 2.8 times owner earnings |
| Restaurant / Cafe | 0.25 to 0.45 times yearly revenue | 1.3 to 2.2 times owner earnings |
| Auto repair / Detailing | 0.4 to 0.75 times yearly revenue | 1.9 to 3.1 times owner earnings |
| Retail shop | 0.3 to 0.6 times yearly revenue | 1.8 to 3 times owner earnings |
| Other service business | 0.35 to 0.7 times yearly revenue | 1.5 to 2.5 times owner earnings |
Nebraska law directs the buyer of a business to withhold enough of the purchase price to cover any unpaid sales and use taxes until the seller produces a receipt from the Tax Commissioner or a certificate that nothing is due. A buyer who hands over the full price without that proof becomes liable for your taxes up to the amount they paid, so expect them to insist.
The clearance comes from the Nebraska Department of Revenue through a Tax Clearance Application, Form 36. File it early in the deal so the certificate, not a holdback, is what shows up at closing.
Many states trim an overbroad non-compete down to something enforceable. Nebraska does not. Its courts enforce a covenant as written or throw it out entirely. Covenants tied to the sale of a business do get more favorable treatment than employment ones, and reasonable time and distance terms will stand. The lesson for both sides is to draft carefully the first time. Spend the flat attorney fee here, because there is no second chance at the language.
A Nebraska liquor license does not simply move with a bill of sale. An ownership change routes through the Nebraska Liquor Control Commission, which can require background checks and a fresh license application from the new owner, with the local city or village weighing in. Fold those weeks into your closing timeline so the taps never sit dry between owners.
Locate three years of business tax returns and keep them handy. They are the first document an SBA lender requests when financing a buyer, and SBA loans and seller notes carry most small deals. Get your free range below and back it with documentation before price talk begins.
Most main-street businesses sell for 1.5 to 2.5 times the owner's true yearly earnings, or their replacement value, whichever is higher and can be proven. True earnings means salary plus profit plus the personal things the business pays for. Most owners forget those add-backs count, so most owners guess low.
SBA lenders require three years of business tax returns to finance a buyer. Three years also shows a trend, not a snapshot. We saw a salon whose latest year looked like decline. Three years proved it was one expensive staffing year, and that was worth tens of thousands on her price. Fewer years looks like hiding. More rarely changes the number.
No. YourBizWorth is not a broker, appraiser, or law firm. We prepare your analysis and drafts. We flag exactly which steps need a licensed attorney, usually one flat-fee engagement at closing, often payable from the sale money. We make the lawyer cheaper, not absent.