What Your Digital Business Is Actually Worth (and What Moves the Number)

Every founder asks the same first question: what's my business worth?

And most M&A advisors give the same useless answer: "it depends, book a call." I'd rather just show you how the number actually gets built.

Start with the multiple

Most digital businesses sell for a multiple of profit (usually SDE for smaller businesses, EBITDA for larger ones). The multiple depends on what you sell and, far more importantly, how healthy the business is.

I'm not going to quote you a range, because ranges swing so widely by business type, by year, and by market conditions that any number you see online is close to meaningless for YOUR business. Two SaaS companies with identical revenue can sell for completely different multiples.

What actually decides where you land is everything below.

What moves your multiple UP

• Recurring revenue. Predictable beats lumpy, every time.
• Owner independence. If the business runs without you, buyers pay more. A business that needs you in the room sells for 20 to 50% less.
• Clean books. If a buyer's accountant can understand your numbers in an afternoon, you've already earned a premium.
• Diversified revenue. No single client or channel above roughly 20 to 30% of the total.
• Real growth. Up and to the right, backed by numbers, not a story.

What moves it DOWN

• You are the business. Every relationship, decision, and fire goes through you.
• Messy financials. If the buyer can't trust the numbers, they discount for the risk.
• Concentration. One client is 40% of revenue. One platform change could sink you.
• Flat or declining. A business shrinking on the way to market gets priced like it.

The honest part

Sometimes a founder's number and the market's number are far apart. When that happens, I tell them. That's not fun to hear, but it's a lot better than listing at a fantasy price and watching the business sit for a year while the story gets stale.

The good news: most of what drags a multiple down is fixable. Owner dependence, messy books, concentration. Fix those before you list and you don't just sell, you sell for more. That's exactly why we often get in early and help founders build the business a buyer pays up for, before we take it to market.

Frequently asked questions

How are digital businesses valued?

Most sell for a multiple of profit (SDE or EBITDA). The multiple depends on the business type and its health: recurring revenue, owner independence, clean financials, and growth all push it higher.

What multiple does a SaaS or agency sell for?

Ranges vary so much by business type, year, and market conditions that a generic number isn't useful. SaaS usually earns more than agencies because of recurring revenue, but the health of your specific business (owner independence, clean books, growth) matters more than the category.

How can I increase what my business is worth before selling?

Reduce owner dependence, clean up your books, diversify revenue so no single client or channel dominates, and show real growth. These are the biggest levers on your multiple.

Why do two similar businesses sell for different prices?

Because the multiple reflects risk and quality, not just revenue. One might be owner-dependent with messy books; the other runs on systems with a clean P&L. Same revenue, very different number.

The bottom line

Your business is worth a multiple of its profit, adjusted for how much risk a buyer takes on when they step in. Lower the risk, raise the number.

You don't have to guess where you land.

Want a real number instead of a range? Get a free valuation.