A main-street business in Nevada typically sells for 1.5 to 2.5 times the owner's true annual earnings. Nevada stacks state, county, and city licensing on top of every sale and holds buyers responsible for a seller's unpaid taxes. Neither slows down a deal that starts its paperwork early.
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 | 1.7 to 2.6 times owner earnings |
| Retail shop | 0.3 to 0.6 times yearly revenue | 1.5 to 2.3 times owner earnings |
| Other service business | 0.35 to 0.7 times yearly revenue | 1.5 to 2.5 times owner earnings |
Nevada law requires the buyer of a business to withhold enough of the purchase price to cover any tax or fee you owe the Department of Taxation at the time of sale. Buyers protect themselves by requesting a certificate from the Department showing the amount due before the sale money is released. If they skip it, they inherit liability for your taxes up to what they paid for the business.
You control how painless this is. Bring every state tax account current before you list, and the certificate comes back clean, the withholding disappears, and your full price is released on schedule.
Nevada businesses carry an annual state business license from the Secretary of State plus a separate license from the city or county where they operate. These attach to the owner, not the storefront, so your buyer files for their own. It is quick, but an unlicensed gap is an avoidable risk, so have the applications ready for closing day.
One special case deserves respect: slot machines. If your business hosts gaming machines, the buyer needs their own approval from Nevada's gaming regulators, a personal review that runs far longer than any business license. Deals with gaming should build that review into the timeline from the first conversation.
Nevada's non-compete statute, NRS 613.195, restricts covenants between employers and employees and bans them outright for hourly workers. A covenant you sign as part of selling your business falls outside that statute. Courts will enforce it when the time and territory are reasonable, so negotiate those terms as if they are permanent. A licensed attorney should read it before you do, usually for one flat fee.
Round up three years of business tax returns. No SBA lender will finance your buyer without them, and SBA financing or a seller note stands behind most main-street purchases. Check your free range below, then document the number before you float a price.
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.