Selling a Business in Alabama

Selling a business in Alabama means pricing it correctly, preparing the records a buyer will ask for and finding a buyer who can pay and close. Alabama has 105,720 employer businesses and about 399,018 more with no employees. This page covers the numbers, the steps and what buyers look for.

LOCAL SNAPSHOT

Alabama by the numbers

105,720

105,720

EMPLOYER BUSINESSES

84%

84%

SMALL EMPLOYER SHARE

399,018

399,018

BUSINESSES WITH NO EMPLOYEES

1,822,666

1,822,666

EMPLOYMENT

$101.0 billion

$101.0 billion

ANNUAL PAYROLL

46,815

46,815

BUSINESSES WITH 5 TO 49 EMPLOYEES

U.S. Census Bureau, County Business Patterns 2023 and Nonemployer Statistics 2024. Counts are employer establishments, meaning business locations with paid employees.

How Alabama compares

  • Alabama ranks 26th among the 50 states and the District of Columbia for employer businesses.

  • The number of employer businesses grew 5.4% between 2018 and 2023.

  • Retail makes up 17% of employer businesses in Alabama, compared with 12% nationwide.

  • 46,815 employer businesses here have 5 to 49 employees.

  • Alabama ranks 26th among the 50 states and the District of Columbia for employer businesses.

  • The number of employer businesses grew 5.4% between 2018 and 2023.

  • Retail makes up 17% of employer businesses in Alabama, compared with 12% nationwide.

  • 46,815 employer businesses here have 5 to 49 employees.

How a sale works in Alabama

A sale follows the same sequence in every market. The business is valued from its earnings, assets, size and industry. The records a buyer will ask for are prepared. The business is marketed without naming it, and buyers are asked to sign a non-disclosure agreement before they see the name or the financial statements. Each buyer is checked for money and fit, the letter of intent is negotiated, the buyer's review of the books is managed, and the sale is carried to closing.

State rules on tax clearance, bulk sale notices and the transfer of permits and licenses differ from state to state.

Rules that apply in Alabama

Notice when assets are sold

Alabama law says a seller who sells out a business or its stock of goods, or quits business, must file the sales tax return within 30 days of the sale or closing. The Department of Revenue reprints this rule, Section 40-23-25 of the Code of Alabama, in its guide to closing or selling a business (Department of Revenue guide to closing a business).

Sales tax and the buyer's liability

Alabama's Department of Revenue says a buyer of an ongoing business is required to withhold enough of the price to cover the seller's unpaid sales and use taxes, unless the seller has a certificate of good standing from the Department. The Department treats a buyer who does not withhold as responsible for the seller's unpaid tax, a rule called successor liability, which means a buyer becomes responsible for the seller's unpaid taxes (Department of Revenue FAQ on a predecessor's taxes).

Permits and registrations

Alabama's Department of Revenue rules say any change in ownership or business structure requires a new license application. The same rule lets the Department close or revoke a license when the holder does not report a change in ownership (Department of Revenue rule 810-6-5-.01).

Unemployment insurance account

Alabama's Department of Workforce says a new employer that acquires the business of another liable employer is assigned that predecessor's experience, meaning its benefit charges and taxable payroll. The predecessor's experience is then used to set the new employer's unemployment tax rate. A buyer of only part of a business may qualify for a partial rate if it gives the Department notice and wage records on time (Department of Workforce FAQ on tax rate transfers).

These points come from official Alabama agency pages checked on 2026-10-24. Rules change, so check the linked agency page for the current version. This is general information and not legal or tax advice.

A sale follows the same sequence in every market. The business is valued from its earnings, assets, size and industry. The records a buyer will ask for are prepared. The business is marketed without naming it, and buyers are asked to sign a non-disclosure agreement before they see the name or the financial statements. Each buyer is checked for money and fit, the letter of intent is negotiated, the buyer's review of the books is managed, and the sale is carried to closing.

State rules on tax clearance, bulk sale notices and the transfer of permits and licenses differ from state to state.

Rules that apply in Alabama

Notice when assets are sold

Alabama law says a seller who sells out a business or its stock of goods, or quits business, must file the sales tax return within 30 days of the sale or closing. The Department of Revenue reprints this rule, Section 40-23-25 of the Code of Alabama, in its guide to closing or selling a business (Department of Revenue guide to closing a business).

Sales tax and the buyer's liability

Alabama's Department of Revenue says a buyer of an ongoing business is required to withhold enough of the price to cover the seller's unpaid sales and use taxes, unless the seller has a certificate of good standing from the Department. The Department treats a buyer who does not withhold as responsible for the seller's unpaid tax, a rule called successor liability, which means a buyer becomes responsible for the seller's unpaid taxes (Department of Revenue FAQ on a predecessor's taxes).

Permits and registrations

Alabama's Department of Revenue rules say any change in ownership or business structure requires a new license application. The same rule lets the Department close or revoke a license when the holder does not report a change in ownership (Department of Revenue rule 810-6-5-.01).

Unemployment insurance account

Alabama's Department of Workforce says a new employer that acquires the business of another liable employer is assigned that predecessor's experience, meaning its benefit charges and taxable payroll. The predecessor's experience is then used to set the new employer's unemployment tax rate. A buyer of only part of a business may qualify for a partial rate if it gives the Department notice and wage records on time (Department of Workforce FAQ on tax rate transfers).

These points come from official Alabama agency pages checked on 2026-10-24. Rules change, so check the linked agency page for the current version. This is general information and not legal or tax advice.

What buyers look for

Buyers look first at profit that holds up under review. Three years of tax returns and profit and loss statements that match each other carry more weight than a high number that cannot be shown.

  • How much of the business depends on the owner

  • How concentrated sales are among a few customers

  • The lease, its remaining term and the landlord's consent to a sale

  • The condition of equipment and the contracts that transfer

Buyers look first at profit that holds up under review. Three years of tax returns and profit and loss statements that match each other carry more weight than a high number that cannot be shown.

  • How much of the business depends on the owner

  • How concentrated sales are among a few customers

  • The lease, its remaining term and the landlord's consent to a sale

  • The condition of equipment and the contracts that transfer

INDUSTRIES

What sells in Alabama

Retail, health care and social assistance, repair, personal care and other services, accommodation and food service

Every kind of business we sell in Alabama

We sell businesses in every one of these industries in Alabama. Counts are employer businesses in the closest Census industry codes. Industries without a clean Census match are listed without a count, and a few industries share one Census category, so their counts match. A sale multiple is the price a business typically sells for as a multiple of its earnings. SDE means seller's discretionary earnings, which is the owner's pay plus the profit of the business. EBITDA means earnings before interest, taxes, depreciation and amortization.

Construction & Engineering

10,040 related employer businesses in Alabama.

  • General Contracting: 2,492 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Plumbing: 1,647 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 1,647 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Landscaping: 1,359 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 1,034 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Electrical: 1,013 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 983 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Foundation & Site Prep: 838 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 394 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 129 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Carpentry & Framing: 83 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Remediation & Restoration: 68 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Restaurants & Food

9,324 related employer businesses in Alabama.

Medical Practices

7,229 related employer businesses in Alabama.

Retail Stores

6,622 related employer businesses in Alabama.

Financial & Professional Services

6,402 related employer businesses in Alabama.

Automotive & Boat

4,298 related employer businesses in Alabama.

  • Auto Repair: 1,289 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 1,016 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 854 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Collision Repair: 557 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 279 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 158 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 82 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

  • Marinas: 63 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

Gas Stations & Convenience

3,512 related employer businesses in Alabama.

Manufacturing

3,241 related employer businesses in Alabama.

Logistics & Transportation

3,220 related employer businesses in Alabama.

Wholesale & Distribution

2,208 related employer businesses in Alabama.

Home Services

1,861 related employer businesses in Alabama.

Pharmacies & Medical Supply

1,717 related employer businesses in Alabama.

Beauty & Personal Care

1,344 related employer businesses in Alabama.

  • Hair Salons: 740 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Nail Salons: 290 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Day Spas: 259 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 259 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 259 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 55 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

  • Medical Spas. Typical sale multiple: 2.5x - 4.5x EBITDA.

Hospitality & Travel

1,135 related employer businesses in Alabama.

  • Hotels: 908 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 908 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 98 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Campgrounds & RV Parks: 67 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Travel Agencies: 48 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Bed & Breakfasts / Inns: 14 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

Education & Childcare

1,072 related employer businesses in Alabama.

  • Daycare Centers: 988 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 84 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

  • Preschools. Typical sale multiple: 3.12x - 4.0x SDE.

Technology & Media

988 related employer businesses in Alabama.

Energy & Utilities

801 related employer businesses in Alabama.

Entertainment & Recreation

714 related employer businesses in Alabama.

  • Bars & Pubs: 313 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 313 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 200 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 126 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Arcades & FECs: 44 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 31 employer businesses here. Typical sale multiple: 3.0x - 5.0x EBITDA.

  • Event Venues. Typical sale multiple: 2.8x - 3.5x Earnings.

  • Banquet Halls. Typical sale multiple: 3.5x - 4.5x Earnings.

  • Escape Rooms. Typical sale multiple: 1.5x - 3.5x SDE.

Health & Fitness

705 related employer businesses in Alabama.

Senior Care & Living

557 related employer businesses in Alabama.

Pet Services

410 related employer businesses in Alabama.

Land & Agriculture

6 related employer businesses in Alabama.

E-commerce & Online Businesses

We sell businesses in every one of these industries in Alabama. Counts are employer businesses in the closest Census industry codes. Industries without a clean Census match are listed without a count, and a few industries share one Census category, so their counts match. A sale multiple is the price a business typically sells for as a multiple of its earnings. SDE means seller's discretionary earnings, which is the owner's pay plus the profit of the business. EBITDA means earnings before interest, taxes, depreciation and amortization.

Construction & Engineering

10,040 related employer businesses in Alabama.

  • General Contracting: 2,492 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Plumbing: 1,647 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 1,647 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Landscaping: 1,359 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 1,034 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Electrical: 1,013 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 983 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Foundation & Site Prep: 838 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 394 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 129 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Carpentry & Framing: 83 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Remediation & Restoration: 68 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Restaurants & Food

9,324 related employer businesses in Alabama.

Medical Practices

7,229 related employer businesses in Alabama.

Retail Stores

6,622 related employer businesses in Alabama.

Financial & Professional Services

6,402 related employer businesses in Alabama.

Automotive & Boat

4,298 related employer businesses in Alabama.

  • Auto Repair: 1,289 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 1,016 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 854 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Collision Repair: 557 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 279 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 158 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 82 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

  • Marinas: 63 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

Gas Stations & Convenience

3,512 related employer businesses in Alabama.

Manufacturing

3,241 related employer businesses in Alabama.

Logistics & Transportation

3,220 related employer businesses in Alabama.

Wholesale & Distribution

2,208 related employer businesses in Alabama.

Home Services

1,861 related employer businesses in Alabama.

Pharmacies & Medical Supply

1,717 related employer businesses in Alabama.

Beauty & Personal Care

1,344 related employer businesses in Alabama.

  • Hair Salons: 740 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Nail Salons: 290 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Day Spas: 259 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 259 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 259 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 55 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

  • Medical Spas. Typical sale multiple: 2.5x - 4.5x EBITDA.

Hospitality & Travel

1,135 related employer businesses in Alabama.

  • Hotels: 908 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 908 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 98 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Campgrounds & RV Parks: 67 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Travel Agencies: 48 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Bed & Breakfasts / Inns: 14 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

Education & Childcare

1,072 related employer businesses in Alabama.

  • Daycare Centers: 988 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 84 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

  • Preschools. Typical sale multiple: 3.12x - 4.0x SDE.

Technology & Media

988 related employer businesses in Alabama.

Energy & Utilities

801 related employer businesses in Alabama.

Entertainment & Recreation

714 related employer businesses in Alabama.

  • Bars & Pubs: 313 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 313 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 200 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 126 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Arcades & FECs: 44 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 31 employer businesses here. Typical sale multiple: 3.0x - 5.0x EBITDA.

  • Event Venues. Typical sale multiple: 2.8x - 3.5x Earnings.

  • Banquet Halls. Typical sale multiple: 3.5x - 4.5x Earnings.

  • Escape Rooms. Typical sale multiple: 1.5x - 3.5x SDE.

Health & Fitness

705 related employer businesses in Alabama.

Senior Care & Living

557 related employer businesses in Alabama.

Pet Services

410 related employer businesses in Alabama.

Land & Agriculture

6 related employer businesses in Alabama.

E-commerce & Online Businesses

Working with owners in Alabama

Business Advisors of America works with owners who are selling a business in Alabama. Contact us to talk about a sale.

FREQUENTLY ASKED QUESTIONS

Questions owners in Alabama ask

How long does it take to sell a business in Alabama?

The time depends on the price, the quality of the records and the number of qualified buyers. Many sales take six months or longer from the start of the process to closing.

How is a business valued in Alabama?

Valuation starts with the earnings the business produces for an owner, then adjusts for assets, size, industry and the terms a buyer is likely to accept. The result is a range, and the asking price is set inside it.

Is the sale confidential?

Buyers are asked to sign a non-disclosure agreement before they see the name of the business or its financial statements.

What should I prepare before listing?

Three years of tax returns and profit and loss statements, a current balance sheet, the lease, a list of equipment and a summary of key contracts.

What is the difference between SDE and EBITDA?

SDE means seller's discretionary earnings, which is the owner's pay plus the profit of the business. EBITDA means earnings before interest, taxes, depreciation and amortization, and it is used for larger businesses that run without the owner.

FROM OUR BLOG

Guides for owners in Alabama

October 3, 2025

Business Owners

Add-Backs: What Counts, What Does Not, and What Buyers Push Back On

Every add-back you can prove raises your sale price by two to three times its amount. Every add-back you cannot prove costs you credibility on all the others.

Read article

October 3, 2025

Business Owners

Add-Backs: What Counts, What Does Not, and What Buyers Push Back On

Every add-back you can prove raises your sale price by two to three times its amount. Every add-back you cannot prove costs you credibility on all the others.

Read article

March 5, 2026

Business Owners

Buyer Qualification: How We Screen Out the Buyers Who Cannot Close

Most inquiries on a business listing come from people who cannot close. Here is how they get screened out before they see your name or your financials.

Read article

March 5, 2026

Business Owners

Buyer Qualification: How We Screen Out the Buyers Who Cannot Close

Most inquiries on a business listing come from people who cannot close. Here is how they get screened out before they see your name or your financials.

Read article

February 9, 2026

Business Owners

The Confidential Information Memorandum: What Goes In It and Why

The CIM is the document a buyer reads before they decide to spend time on your business. Here is what it has to contain and the mistakes that cost sellers offers.

Read article

February 9, 2026

Business Owners

The Confidential Information Memorandum: What Goes In It and Why

The CIM is the document a buyer reads before they decide to spend time on your business. Here is what it has to contain and the mistakes that cost sellers offers.

Read article