A main-street business in Virginia typically sells for 1.5 to 2.5 times the owner's true annual earnings. Virginia layers on a sales tax withholding rule, a new non-compete law that does not cover sellers, and an ABC license that ends the day you sell. Each one is manageable with a head start.
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 |
Virginia's sale-of-business rule makes your buyer keep part of the purchase price on the sideline until you produce proof from the state that your sales taxes are settled. A buyer who pays you everything without that proof becomes personally responsible for whatever you still owe, so their attorney will insist on the holdback.
The practical move is to reconcile your sales tax account with Virginia Tax before you go to market. A seller who shows up with a clean account gets paid in full at the table instead of waiting weeks for the state to confirm it.
As of July 1, 2025, Virginia bars employers from signing new non-competes with any employee who is eligible for overtime. That headline confuses sellers. The ban governs employment agreements. The covenant you sign in a purchase agreement, promising not to open a rival shop after the buyer pays for your goodwill, is a different animal, and Virginia courts enforce it when the terms are reasonable.
One wrinkle worth knowing: if you stay on the buyer's payroll after closing as an hourly employee, the buyer cannot bind you with a fresh employee non-compete, but your sale covenant still stands. Have a licensed Virginia attorney walk you through both documents. It is normally a single flat-fee engagement at closing.
If you sell alcohol, know that a change in ownership of the business automatically ends the current Virginia ABC license. Your buyer files an ownership-change application with Virginia ABC, complete with background checks and disclosures, before they can pour a single drink under their own authority.
This is a timeline problem more than a legal one. Have your buyer open their application as soon as the contract is signed, and coordinate the closing date with the approval so the license gap never forces the doors shut.
Collect three years of business tax returns now, before a single buyer conversation. SBA lenders require them to underwrite a buyer's loan, and most main-street sales in Virginia depend on SBA money or seller financing. Get your free range below, then put a documented number behind the price you plan to ask.
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.