A main-street business in Ohio typically sells for 1.5 to 2.5 times the owner's true annual earnings. Columbus, Cleveland, or a township of two thousand people, the math holds. Ohio adds a fast tax deadline at closing, and if you serve alcohol, your permit might be worth more than you think.
Your tax returns almost always prove a higher number.
Start my package - $299Your price report, hidden money list, buyer pitch, payment math, NDA, and playbook. Ready in minutes.
Want this emailed to you, with the list of papers you'll need to sell?
| 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 or quit an Ohio business, your remaining sales tax comes due immediately and your final return is owed within fifteen days. At the same time, Ohio law tells your buyer to keep back enough of the purchase money to cover any unpaid tax until you produce a receipt or a certificate from the Tax Commissioner showing you owe nothing. A buyer who pays out anyway becomes personally liable for your tax bill, so expect them to follow the rule.
Order that clearance paperwork as soon as the deal takes shape. Sellers who wait until closing week routinely watch part of their money sit in escrow while the state catches up.
Ohio caps the number of C and D class liquor permits in each city and township based on population. In areas where the quota is full, the only way in for a newcomer is to buy a business that already holds one and transfer the permit through the Division of Liquor Control. That approval process takes real time, but here is the seller's angle: if you hold a permit in a full quota area, you own something scarce. Price it into your deal instead of treating it as an afterthought.
Ohio enforces non-competes that protect a legitimate interest, and unlike some neighbors, its courts can adjust an overreaching term down to something fair rather than throwing the whole agreement out. A covenant attached to a business sale sits on the strongest possible footing, since the buyer paid you for the goodwill it protects. Assume the time and distance limits you sign will stick, and have a licensed attorney review them at closing.
Dig out your last three years of business tax returns. That specific stack is what SBA lenders demand before funding a buyer, and buyer financing is the engine behind most main-street sales. Get your free valuation range below, then put your number in writing before price talk starts.
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.