A main-street business in New Hampshire typically sells for 1.5 to 2.5 times the owner's true annual earnings. New Hampshire collects no general sales tax, so the bulk-sale clearance ritual most states impose simply is not here. The trap waits for restaurants and inns, where the state's meals and rentals license ends the day you sell.
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 |
With no general sales or use tax, New Hampshire buyers skip the sales tax escrow that dominates closings elsewhere. The state still collects the Business Profits Tax and the Business Enterprise Tax, and a careful buyer will ask for proof that your filings with the Department of Revenue Administration are current. Clean, up-to-date returns keep diligence short and your leverage intact.
If you serve food or rent rooms, your operator's license from the Department of Revenue Administration is nonassignable. It cannot be transferred, and a change of ownership ends it. Your buyer must hold their own license before serving a single taxable meal.
The fix is sequencing. Have the buyer submit their license application well before closing so the approval and the ownership change land together and the dining room never goes dark.
New Hampshire courts uphold non-compete agreements when the duration and geography are reasonable, and a covenant given by the seller of a business is the strongest version there is. Assume you will honor every word of it. Put a licensed attorney's eyes on the terms before signing, typically one flat-fee review paid from proceeds.
Gather three years of business tax returns first. SBA lenders demand them before financing any buyer, and most small transactions ride on SBA loans or seller financing. See your free range below, then anchor it with documentation before negotiations open.
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.