A main-street business in Mississippi typically sells for 1.5 to 2.5 times the owner's true annual earnings. Mississippi adds a ten day deadline after closing and gives your buyer a legal reason to sit on part of your money until the state confirms your taxes are paid. Both are simple once you see them coming.
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 |
When you sell out or quit a business in Mississippi, state law gives you ten days from the sale to file a final sales tax return and pay what is due. Unpaid sales tax acts as a lien on the business property, which is exactly why buyers get nervous about it. Put the final return on your closing checklist so it never becomes a problem.
Mississippi law tells your buyer to withhold enough of the purchase money to cover any taxes, damages, and interest you owe, and to keep withholding it until you produce a receipt or a no-tax-due certificate from the Department of Revenue. A buyer who skips this step becomes personally liable for your tax bill, so no careful buyer's lawyer will skip it.
Request your certificate from the Department of Revenue early. If your account is clean, the holdback shrinks to a formality and your full price arrives on time.
Alcohol permits in Mississippi come from the Department of Revenue's ABC office, and they do not ride along with the sale. Your buyer applies in their own name. A temporary permit lasting up to 70 days can bridge the gap while the transfer is processed, but the buyer must submit the completed transfer application within 14 days of receiving the temporary one.
One detail matters most to you as the seller: the state will not issue the buyer a permit while you owe Mississippi any taxes, fees, or penalties. Clear your balances before the application goes in.
Collect three years of business tax returns now. When your buyer applies for an SBA loan, and most small buyers do, the lender will ask for those returns before anything moves. Check your free range below and get the valuation documented before a single price 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.