Selling a Business in Chattanooga

Owners in the Chattanooga area sell to local buyers and to buyers from other markets. The area has 12,621 employer businesses, and 82% of them have fewer than 20 employees. This page shows what is here and how a sale is handled.

LOCAL SNAPSHOT

Chattanooga by the numbers

12,621

12,621

EMPLOYER BUSINESSES

82%

82%

SMALL EMPLOYER SHARE

50,281

50,281

BUSINESSES WITH NO EMPLOYEES

243,302

243,302

EMPLOYMENT

$13.3 billion

$13.3 billion

ANNUAL PAYROLL

5,825

5,825

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 Chattanooga compares

  • The Chattanooga area ranks 4th of 10 Tennessee metro areas for employer businesses.

  • The number of employer businesses grew 9.7% between 2018 and 2023.

  • Wholesale makes up 5% of employer businesses in Chattanooga, compared with 4% in Tennessee.

  • 5,825 employer businesses here have 5 to 49 employees.

  • The Chattanooga area ranks 4th of 10 Tennessee metro areas for employer businesses.

  • The number of employer businesses grew 9.7% between 2018 and 2023.

  • Wholesale makes up 5% of employer businesses in Chattanooga, compared with 4% in Tennessee.

  • 5,825 employer businesses here have 5 to 49 employees.

Industry mix

The largest industries by number of employer businesses:

  • Retail: 2,004 employer businesses

  • Health care and social assistance: 1,504 employer businesses

  • Repair, personal care and other services: 1,373 employer businesses

  • Accommodation and food service: 1,259 employer businesses

  • Professional and technical services: 1,121 employer businesses

The largest industries by number of employer businesses:

  • Retail: 2,004 employer businesses

  • Health care and social assistance: 1,504 employer businesses

  • Repair, personal care and other services: 1,373 employer businesses

  • Accommodation and food service: 1,259 employer businesses

  • Professional and technical services: 1,121 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 Chattanooga

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

Every kind of business we sell in Chattanooga

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

Restaurants & Food

1,198 related employer businesses in Chattanooga.

Construction & Engineering

1,134 related employer businesses in Chattanooga.

  • General Contracting: 323 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Plumbing: 173 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 173 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Landscaping: 133 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 131 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Foundation & Site Prep: 103 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Electrical: 96 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 84 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Roofing & Siding: 44 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 21 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Remediation & Restoration: 14 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Carpentry & Framing: 12 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

Medical Practices

932 related employer businesses in Chattanooga.

Financial & Professional Services

713 related employer businesses in Chattanooga.

Retail Stores

707 related employer businesses in Chattanooga.

Automotive & Boat

436 related employer businesses in Chattanooga.

  • Auto Repair: 177 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 91 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 72 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Collision Repair: 37 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 27 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 14 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 9 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

  • Marinas: 9 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

Manufacturing

412 related employer businesses in Chattanooga.

Gas Stations & Convenience

396 related employer businesses in Chattanooga.

Logistics & Transportation

351 related employer businesses in Chattanooga.

Wholesale & Distribution

298 related employer businesses in Chattanooga.

Home Services

244 related employer businesses in Chattanooga.

Pharmacies & Medical Supply

187 related employer businesses in Chattanooga.

Hospitality & Travel

164 related employer businesses in Chattanooga.

  • Hotels: 129 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 129 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 21 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Campgrounds & RV Parks: 6 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Travel Agencies: 5 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Bed & Breakfasts / Inns: 3 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

Beauty & Personal Care

158 related employer businesses in Chattanooga.

  • Hair Salons: 86 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Day Spas: 46 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 46 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 46 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Nail Salons: 17 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Barber Shops: 9 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Technology & Media

150 related employer businesses in Chattanooga.

Health & Fitness

115 related employer businesses in Chattanooga.

Education & Childcare

112 related employer businesses in Chattanooga.

  • Daycare Centers: 101 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 11 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Senior Care & Living

104 related employer businesses in Chattanooga.

Energy & Utilities

81 related employer businesses in Chattanooga.

Entertainment & Recreation

77 related employer businesses in Chattanooga.

  • Outdoor Recreation: 34 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Bars & Pubs: 24 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 24 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Golf Courses: 11 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Arcades & FECs: 5 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 3 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.

Pet Services

63 related employer businesses in Chattanooga.

E-commerce & Online Businesses

Land & Agriculture

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

Restaurants & Food

1,198 related employer businesses in Chattanooga.

Construction & Engineering

1,134 related employer businesses in Chattanooga.

  • General Contracting: 323 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Plumbing: 173 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 173 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Landscaping: 133 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 131 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Foundation & Site Prep: 103 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Electrical: 96 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 84 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Roofing & Siding: 44 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 21 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Remediation & Restoration: 14 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Carpentry & Framing: 12 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

Medical Practices

932 related employer businesses in Chattanooga.

Financial & Professional Services

713 related employer businesses in Chattanooga.

Retail Stores

707 related employer businesses in Chattanooga.

Automotive & Boat

436 related employer businesses in Chattanooga.

  • Auto Repair: 177 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 91 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 72 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Collision Repair: 37 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 27 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 14 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 9 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

  • Marinas: 9 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

Manufacturing

412 related employer businesses in Chattanooga.

Gas Stations & Convenience

396 related employer businesses in Chattanooga.

Logistics & Transportation

351 related employer businesses in Chattanooga.

Wholesale & Distribution

298 related employer businesses in Chattanooga.

Home Services

244 related employer businesses in Chattanooga.

Pharmacies & Medical Supply

187 related employer businesses in Chattanooga.

Hospitality & Travel

164 related employer businesses in Chattanooga.

  • Hotels: 129 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 129 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 21 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Campgrounds & RV Parks: 6 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Travel Agencies: 5 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Bed & Breakfasts / Inns: 3 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

Beauty & Personal Care

158 related employer businesses in Chattanooga.

  • Hair Salons: 86 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Day Spas: 46 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 46 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 46 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Nail Salons: 17 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Barber Shops: 9 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Technology & Media

150 related employer businesses in Chattanooga.

Health & Fitness

115 related employer businesses in Chattanooga.

Education & Childcare

112 related employer businesses in Chattanooga.

  • Daycare Centers: 101 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 11 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Senior Care & Living

104 related employer businesses in Chattanooga.

Energy & Utilities

81 related employer businesses in Chattanooga.

Entertainment & Recreation

77 related employer businesses in Chattanooga.

  • Outdoor Recreation: 34 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Bars & Pubs: 24 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 24 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Golf Courses: 11 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Arcades & FECs: 5 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 3 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.

Pet Services

63 related employer businesses in Chattanooga.

E-commerce & Online Businesses

Land & Agriculture

Counties in this metro area

Working with owners in Chattanooga

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

FREQUENTLY ASKED QUESTIONS

Questions owners in Chattanooga ask

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

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 Chattanooga?

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 Chattanooga

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