Selling a Business in Birmingham

Owners in the Birmingham area sell to local buyers and to buyers from other markets. The area has 27,200 employer businesses, and 83% of them have fewer than 20 employees. This page shows what is here and how a sale is handled.

LOCAL SNAPSHOT

Birmingham by the numbers

27,200

27,200

EMPLOYER BUSINESSES

83%

83%

SMALL EMPLOYER SHARE

100,875

100,875

BUSINESSES WITH NO EMPLOYEES

480,717

480,717

EMPLOYMENT

$30.5 billion

$30.5 billion

ANNUAL PAYROLL

11,733

11,733

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 Birmingham compares

  • The Birmingham area ranks 1st of 12 Alabama metro areas for employer businesses.

  • The number of employer businesses grew 4.6% between 2018 and 2023.

  • Wholesale makes up 6% of employer businesses in Birmingham, compared with 5% in Alabama.

  • 11,733 employer businesses here have 5 to 49 employees.

  • The Birmingham area ranks 1st of 12 Alabama metro areas for employer businesses.

  • The number of employer businesses grew 4.6% between 2018 and 2023.

  • Wholesale makes up 6% of employer businesses in Birmingham, compared with 5% in Alabama.

  • 11,733 employer businesses here have 5 to 49 employees.

Industry mix

The largest industries by number of employer businesses:

  • Retail: 4,055 employer businesses

  • Health care and social assistance: 2,977 employer businesses

  • Professional and technical services: 2,971 employer businesses

  • Repair, personal care and other services: 2,963 employer businesses

  • Accommodation and food service: 2,398 employer businesses

The largest industries by number of employer businesses:

  • Retail: 4,055 employer businesses

  • Health care and social assistance: 2,977 employer businesses

  • Professional and technical services: 2,971 employer businesses

  • Repair, personal care and other services: 2,963 employer businesses

  • Accommodation and food service: 2,398 employer businesses

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 Birmingham

Retail, health care and social assistance, professional and technical services, repair, personal care and other services

Every kind of business we sell in Birmingham

We sell businesses in every one of these industries in Birmingham. 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

2,589 related employer businesses in Birmingham.

  • General Contracting: 680 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Plumbing: 431 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 431 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Landscaping: 354 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 285 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Electrical: 269 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 216 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Foundation & Site Prep: 182 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 95 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 35 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Remediation & Restoration: 23 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Carpentry & Framing: 19 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

Restaurants & Food

2,246 related employer businesses in Birmingham.

Medical Practices

2,005 related employer businesses in Birmingham.

Financial & Professional Services

1,849 related employer businesses in Birmingham.

Retail Stores

1,655 related employer businesses in Birmingham.

Automotive & Boat

970 related employer businesses in Birmingham.

  • Auto Repair: 323 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 226 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 180 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Collision Repair: 119 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 67 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 35 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Marinas: 12 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

  • Boat Dealerships: 8 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

Gas Stations & Convenience

777 related employer businesses in Birmingham.

Wholesale & Distribution

748 related employer businesses in Birmingham.

Manufacturing

704 related employer businesses in Birmingham.

Logistics & Transportation

697 related employer businesses in Birmingham.

Home Services

479 related employer businesses in Birmingham.

Pharmacies & Medical Supply

446 related employer businesses in Birmingham.

Beauty & Personal Care

395 related employer businesses in Birmingham.

  • Hair Salons: 231 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Day Spas: 75 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 75 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 75 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Nail Salons: 72 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Barber Shops: 17 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Technology & Media

392 related employer businesses in Birmingham.

Education & Childcare

245 related employer businesses in Birmingham.

  • Daycare Centers: 228 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 17 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Hospitality & Travel

233 related employer businesses in Birmingham.

  • Hotels: 182 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 182 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 30 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Travel Agencies: 18 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Campgrounds & RV Parks: 3 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Health & Fitness

200 related employer businesses in Birmingham.

Entertainment & Recreation

172 related employer businesses in Birmingham.

  • Bars & Pubs: 80 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 80 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 47 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 26 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Arcades & FECs: 15 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 4 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.

Energy & Utilities

162 related employer businesses in Birmingham.

Senior Care & Living

129 related employer businesses in Birmingham.

Pet Services

104 related employer businesses in Birmingham.

E-commerce & Online Businesses

Land & Agriculture

We sell businesses in every one of these industries in Birmingham. 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

2,589 related employer businesses in Birmingham.

  • General Contracting: 680 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Plumbing: 431 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 431 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Landscaping: 354 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 285 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Electrical: 269 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 216 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Foundation & Site Prep: 182 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 95 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 35 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Remediation & Restoration: 23 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Carpentry & Framing: 19 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

Restaurants & Food

2,246 related employer businesses in Birmingham.

Medical Practices

2,005 related employer businesses in Birmingham.

Financial & Professional Services

1,849 related employer businesses in Birmingham.

Retail Stores

1,655 related employer businesses in Birmingham.

Automotive & Boat

970 related employer businesses in Birmingham.

  • Auto Repair: 323 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 226 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 180 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Collision Repair: 119 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 67 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 35 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Marinas: 12 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

  • Boat Dealerships: 8 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

Gas Stations & Convenience

777 related employer businesses in Birmingham.

Wholesale & Distribution

748 related employer businesses in Birmingham.

Manufacturing

704 related employer businesses in Birmingham.

Logistics & Transportation

697 related employer businesses in Birmingham.

Home Services

479 related employer businesses in Birmingham.

Pharmacies & Medical Supply

446 related employer businesses in Birmingham.

Beauty & Personal Care

395 related employer businesses in Birmingham.

  • Hair Salons: 231 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Day Spas: 75 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 75 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 75 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Nail Salons: 72 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Barber Shops: 17 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Technology & Media

392 related employer businesses in Birmingham.

Education & Childcare

245 related employer businesses in Birmingham.

  • Daycare Centers: 228 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 17 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Hospitality & Travel

233 related employer businesses in Birmingham.

  • Hotels: 182 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 182 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 30 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Travel Agencies: 18 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Campgrounds & RV Parks: 3 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Health & Fitness

200 related employer businesses in Birmingham.

Entertainment & Recreation

172 related employer businesses in Birmingham.

  • Bars & Pubs: 80 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 80 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 47 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 26 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Arcades & FECs: 15 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 4 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.

Energy & Utilities

162 related employer businesses in Birmingham.

Senior Care & Living

129 related employer businesses in Birmingham.

Pet Services

104 related employer businesses in Birmingham.

E-commerce & Online Businesses

Land & Agriculture

Counties in this metro area

Working with owners in Birmingham

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

FREQUENTLY ASKED QUESTIONS

Questions owners in Birmingham ask

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

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 Birmingham?

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.

FROM OUR BLOG

Guides for owners in Birmingham

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