A main-street business in Louisiana typically sells for 1.5 to 2.5 times the owner's true annual earnings. Louisiana runs on its own legal system, and two of its selling rules, the parish-by-name non-compete and the dual alcohol permits, work like nowhere else in the country.
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 |
Louisiana makes a business buyer withhold enough of the purchase price to cover any taxes, interest, and penalties you owe, until you produce a receipt from the Department of Revenue or a certificate that nothing is due. A buyer who skips the step becomes personally liable, capped at what they paid for the business, and no contract clause shifts that risk back to you.
The practical tool is a Letter of Good Standing from the Louisiana Department of Revenue. Only the seller, or someone holding a signed disclosure authorization, can request it, and the department will not issue one while returns are unfiled or a balance is open. Clean up your accounts and order the letter early, because your buyer literally cannot get it without you.
Louisiana law generally voids non-compete agreements, but selling the goodwill of a business is one of the statute's narrow exceptions. Even then the rules are strict: the agreement must spell out the specific parishes or municipalities where you agree not to compete, and it cannot run longer than two years from the date of sale.
A covenant that describes the territory loosely, or reaches past two years, risks failing entirely. Buyers from out of state get this wrong constantly. This is a mandatory stop with a Louisiana-licensed attorney, normally one flat-fee review, payable from the sale money.
If you sell a bar or restaurant, your permits do not simply ride along with the keys. The new owner needs their own state permit from the Office of Alcohol and Tobacco Control and their own permit from the parish or city, and the two applications interlock on tight timelines. Have your buyer open both applications before closing so the business never has a weekend it cannot legally serve.
Get three years of business tax returns into one folder today. Most buyers finance the purchase, and an SBA lender's first request is three years of returns from the business. Check your free range below, then get your number in writing before you open negotiations.
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.