A main-street business in New York typically sells for 1.5 to 2.5 times the owner's true annual earnings. The math works the same in Buffalo as it does in Brooklyn. What changes in New York is the paperwork around closing, and one form in particular can freeze your deal if it is filed late.
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 |
New York's bulk sale rule puts a job on your buyer. Before paying you or taking possession of the assets, the buyer must send Form AU-196.10 to the Tax Department by registered mail, at least 10 days ahead. If that notice is skipped or late, the buyer can be held responsible for your unpaid sales tax, up to the full purchase price. Every buyer's attorney in New York knows this, so the form will be part of your deal whether you planned for it or not.
Once the notice goes in, the state responds quickly, either clearing the sale or flagging a claim against you. If you owe back sales tax or your returns are behind, expect the buyer to park part of your money in escrow until the state signs off. The move that protects your payout is simple: bring every sales tax return current before you ever list the business.
Albany has debated banning non-competes for years, and the governor vetoed a broad ban. As things stand, New York courts enforce reasonable non-competes, and they give the most weight to one signed as part of a business sale, because the buyer is paying you for goodwill. Read the years and the mileage in that covenant as promises you will actually keep. Have a licensed attorney look at it before you sign. One flat-fee review at closing is cheap insurance.
If you run a bar or restaurant, know that State Liquor Authority licenses are issued to a specific owner at a specific address. Your buyer cannot simply take over yours. They apply for their own license, and full approval can take months.
There is a bridge: a temporary retail permit can let the new owner keep pouring while the permanent application is pending, but it generally only works when they are buying from a currently licensed seller at that location. Build the SLA timeline into your deal from day one so the taps never shut off.
Start by gathering three years of business tax returns. Most small business buyers borrow to buy, and SBA lenders will not fund a deal without those returns on the table. Run your free valuation range below, then get your number documented before you quote a price to anyone.
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.