Small Digital Business Valuation: Micro and Small Business

Small digital businesses (micro and small business) have characteristics that require adapted valuation methods: lower revenue, small teams, lean operations, founder dependence, smaller scale, higher risk, and lower liquidity. Valuation should consider: revenue and growth (volume, consistency, trends), quality (product, operations, market), operations (automation, processes, dependence, scalability), market and potential (size, growth, competition, opportunities), risks (dependence, concentration, scale, market), and liquidity (ease of sale, market, timing). Multiples tend to be lower (2x to 5x monthly revenue) due to higher risk and smaller scale. This guide details specific methods, metrics analysis, risk evaluation, potential, and how to structure a sale. We include templates and case studies.