A main-street business in Maine typically sells for 1.5 to 2.5 times the owner's true annual earnings. Maine keeps the selling paperwork light, but the rules that do exist put the risk on your buyer, so a seller who arrives prepared stands out immediately.
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 |
Maine law tells a business buyer to withhold any unpaid taxes, interest, and penalties from the purchase price. A buyer who pays the full price without checking becomes jointly liable for whatever you owed. Maine Revenue Services' own guidance points buyers to one solution: have the seller obtain a tax clearance letter from the agency's compliance division.
Order that letter before your buyer's lawyer brings it up. It costs you a little time, it removes the reason for a holdback, and it signals that the rest of your books are in order too.
Maine sharply limits non-competes for employees, banning them outright for lower earners and requiring advance notice before hiring. None of that shelters you when you sell. The covenant you sign as a departing owner sits outside the employment statute and is judged on reasonableness, and courts have historically accepted seller covenants because the buyer paid for your goodwill. Sign it expecting it to hold, and have a Maine-licensed attorney review the terms first, typically one flat fee at closing.
Maine's on-premises liquor licenses run through two layers: municipal officers approve first, then the state bureau issues the license. New ownership means a new license application, and the municipal step moves at the pace of local meeting schedules. Maine offers a cushion most buyers miss: the new owner can apply for a temporary on-premises license at the same time, which lets the restaurant keep serving while the full application works through, unless the town objects.
Tell your buyer about the temporary license and get the municipal calendar in front of both of you early. A restaurant that goes dark for six weeks between owners is worth less than the one you priced.
Set aside your last three years of business tax returns before you list anything. When your buyer applies for financing, the SBA lender will require those three years, and most main-street deals depend on that loan or on seller financing. Run the free range below and get your number documented before your first pricing conversation.
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.