A main-street business in Missouri typically sells for 1.5 to 2.5 times the owner's true annual earnings. Missouri is unusual in putting the tax paperwork burden on the seller, and it ties local business licenses to a state tax certificate. Start both early and closing stays boring, which is what you want.
Your tax returns almost always prove a higher number.
Upload three years of tax returns, about 15 minutes of your time. A real person reads every page and your package is delivered within 48 hours. If your package isn't right, you don't pay: full refund any time before we deliver, and after delivery we fix the numbers or refund you.
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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 |
Under Missouri law, the seller requests a certificate of no tax due from the Department of Revenue and presents it to the buyer before the sale closes, with the buyer signing to confirm receipt. Skip that step and the state can add a penalty equal to 25 percent of any tax delinquency, on top of what you already owed.
Your buyer has a matching duty to hold back purchase money until your taxes are proven paid, or become personally liable for them. Two motivated parties, one certificate. Request it as soon as the deal turns serious.
If the business sells anything at retail, Missouri cities and counties will not issue or renew a business license without a no-tax-due statement from the state, and the statement must be dated within 90 days of the application. Your buyer will need their own. The good news is that the statement is free and available online through the state's tax portal, so this is a calendar item, not an obstacle.
Missouri courts routinely enforce non-compete agreements with sensible limits on years and territory, and a covenant attached to a business sale gets the friendliest treatment of all. Negotiate the scope before you sign rather than hoping a court trims it later. This is a defined, flat-fee job for a licensed attorney.
Pull together three years of business tax returns. SBA lenders treat them as the price of admission when a buyer needs financing, and most main-street deals do. See your free range below, then put a documented number behind it before naming your 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.