How to Sell a Business, by Industry
Selling a dental practice is not the same as selling a restaurant. The buyers are different, the due diligence is different, and the multiple is different. These 19 guides cover the process for each industry, with the valuation ranges that industry actually trades at.
What Changes From One Industry to the Next
Three things drive most of the difference. The first is who buys. A dental practice sells to another practitioner or to a consolidator, both of whom read the patient list closely. A restaurant usually sells to a first-time owner-operator, who reads the lease.
The second is what survives the handover. Businesses whose revenue repeats without being re-won each year, such as a software company or an insurance agency, command higher multiples than businesses where last year's customers are not an asset that transfers.
The third is which earnings basis applies. Owner-operated businesses are priced on seller's discretionary earnings; businesses with a management layer that would survive the owner leaving are priced on EBITDA. Which one applies typically matters more than a point or two of negotiation.
Construction & Trades
2Food & Beverage
3How to Sell a Restaurant
1.5x to 3.5x SDE
Process, timeline, buyer types, and what due diligence checks in this industry.
How to Sell a Coffee Shop / Cafe
1.5x to 3x SDE
Process, timeline, buyer types, and what due diligence checks in this industry.
How to Sell a Bar
1.5x to 3.5x SDE
Process, timeline, buyer types, and what due diligence checks in this industry.
Healthcare
5How to Sell a Dental Practice
2x to 4x SDE
Process, timeline, buyer types, and what due diligence checks in this industry.
How to Sell a Medical Practice (Primary Care)
1.8x to 3.5x SDE
Process, timeline, buyer types, and what due diligence checks in this industry.
How to Sell a Veterinary Practice
2x to 4.5x SDE
Process, timeline, buyer types, and what due diligence checks in this industry.
How to Sell a Pharmacy
2x to 4x SDE
Process, timeline, buyer types, and what due diligence checks in this industry.
How to Sell a Physical Therapy Practice
1.5x to 3.5x SDE
Process, timeline, buyer types, and what due diligence checks in this industry.
Professional Services
1Service Businesses
2Technology
2Know the Number Before You List
Every guide above assumes you already have a defensible valuation range. If you do not, start there. The industry multiples pages show what each sector trades at, and the valuation calculator applies them to your own earnings across three methods.
Value your businessFrequently Asked Questions
How long does it take to sell a business?
Most small business sales take six to twelve months from listing to close, and roughly a third never close at all. Preparation is what moves that number: owners who organise financials, confirm the lease is assignable, and reduce customer concentration before listing close faster and at higher multiples than owners who start the process cold.
What is the most common reason a sale falls through?
Financials that cannot be verified. Buyers and lenders need earnings tied to tax returns and bank statements. Personal expenses run through the business, two sets of books, or revenue with no paper trail do not usually reduce the multiple so much as introduce a risk discount that is difficult to argue away later.
Should I get a valuation before listing the business?
Yes, and ideally a year or two before. Overpricing extends time on market and signals weakness when the price is eventually cut; underpricing leaves money on the table. A benchmark range also identifies which two or three variables are worth fixing while there is still time to fix them.
Do I need a broker to sell my business?
Not always, but a broker earns their fee on confidentiality and buyer screening more than on finding buyers. Selling without one is most realistic when a buyer is already identified, such as a competitor, an employee, or a family member, and the transaction is straightforward.