A main-street business in Alaska typically sells for 1.5 to 2.5 times the owner's true annual earnings. Alaska has no state sales tax, which removes one common closing headache, but selling here comes with its own list. Here is what actually matters.
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 |
Alaska levies no statewide sales tax, so there is no state bulk-sale clearance certificate to chase the way sellers in most states must. That is genuinely good news. It is not the whole story, though. More than a hundred Alaska boroughs and cities charge their own local sales taxes, and if you operate in one of them, your buyer will want proof those local accounts are filed, paid, and properly closed.
Your Alaska business license is also personal to you. It does not pass to the new owner, who will register for their own. Tidy both items before closing and you take a whole category of buyer objections off the table.
Alaska has no statute banning non-competes. Its courts look hard at covenants forced on employees, but they give real weight to a covenant you sign as the seller of a business, because the buyer is paying you for goodwill. Expect your buyer to ask for one, and expect an Alaska court to enforce reasonable terms. Negotiate the duration and the geography like they are part of the price, and have a licensed Alaska attorney look at the language before you sign. One flat-fee review at closing is usually all it takes.
Unlike many states, Alaska liquor licenses can be transferred to a new owner. The catch is that every transfer needs approval from the state Alcoholic Beverage Control Board through AMCO, which typically adds sixty to ninety days, and the local government gets notice and a chance to protest. A bar or restaurant deal in Alaska should treat the license transfer as the critical path. File the transfer application the moment your purchase agreement is signed, not after everything else is done.
Dig out three years of business tax returns before you do anything else. Most buyers of small Alaska businesses need an SBA loan or seller financing to close, and SBA lenders require those three years of returns to underwrite the deal. Run your free range below, then get your number on paper before naming 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.