Know Your Number
Business Valuation Denver
Understand what your Denver business is worth before going to market. Explore the factors that drive value and start a confidential valuation conversation.
What Is My Denver Business Worth?
This is the most common question business owners ask when they first consider selling. And it is rarely as simple as applying a formula to your revenue. Business value reflects profitability, risk, quality, transferability, and buyer demand in your specific sector.
For most small and mid-market Denver businesses, valuation begins with a multiple of profitability — either Seller Discretionary Earnings (SDE) for owner-operated businesses, or EBITDA for larger companies with management teams. The specific multiple applied depends on your industry, growth trajectory, customer base, and how well-documented and transferable the business is.
Online calculators and generic formulas rarely produce accurate figures. A realistic valuation requires a review of your specific financials, business model, and market conditions. Starting with a confidential conversation is the right first step.
Typical Multiple Ranges by Business Type
Ranges are indicative only and vary significantly based on individual business characteristics, market conditions, and buyer demand.
Value Drivers
Factors That Drive Your Business Valuation
Seller Discretionary Earnings (SDE)
For owner-operated businesses, SDE is typically the starting point for valuation. It represents the total financial benefit the owner derives from the business, including salary and perquisites.
EBITDA
For larger or management-run businesses, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) is the primary valuation metric. Buyers apply an industry-specific multiple to arrive at enterprise value.
Industry Multiples
Different industries command different valuation multiples. A service business with recurring revenue may attract a higher multiple than a retail business with high owner dependency and variable revenue.
Revenue Quality
Recurring revenue, long-term contracts, and diversified customer bases are valued highly by buyers. Concentrated revenue or one-off project work increases perceived risk and reduces valuations.
Owner Dependency
A business that depends heavily on the owner for day-to-day operations, client relationships, or specialist knowledge represents higher risk for buyers. Reducing owner dependency can meaningfully increase value.
Financial Documentation
Buyers and their advisors will scrutinise your last 2–3 years of financial statements. Clean, consistent, and well-documented financials support higher valuations and smoother due diligence.
Business Valuation Questions
Most small businesses in Denver are valued using a multiple of seller discretionary earnings (SDE). The multiple varies by sector, typically ranging from 2x to 4x SDE for owner-operated businesses. Larger businesses with management teams and recurring revenue may attract higher EBITDA multiples.
SDE (Seller Discretionary Earnings) adds back the owner's salary, personal expenses, and other discretionary costs to the net profit, giving a true picture of the economic benefit to one owner-operator. EBITDA is used for larger businesses with professional management structures and is calculated before interest, tax, depreciation, and amortisation.
No. Online calculators typically apply a generic revenue or profit multiple without accounting for the specific risk factors, customer concentration, owner dependency, industry trends, or documentation quality of your business. A conversation with an experienced advisor provides much more realistic guidance.
The most impactful steps are reducing owner dependency, cleaning up and documenting your financials, increasing recurring revenue, reducing customer concentration, and preparing a management team capable of running the business without you. Starting this process 12–24 months before going to market produces the best results.
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Start With a Realistic Valuation
Understanding what your business is worth is the essential first step before any sale decision. Start with a private, no-obligation conversation.
Request a Valuation Conversation