Selling a Business in Detroit

Owners in the Detroit area sell to local buyers and to buyers from other markets. The area has 102,430 employer businesses, and 84% of them have fewer than 20 employees. This page shows what is here and how a sale is handled.

LOCAL SNAPSHOT

Detroit by the numbers

102,430

102,430

EMPLOYER BUSINESSES

84%

84%

SMALL EMPLOYER SHARE

423,346

423,346

BUSINESSES WITH NO EMPLOYEES

1,846,717

1,846,717

EMPLOYMENT

$126.0 billion

$126.0 billion

ANNUAL PAYROLL

41,336

41,336

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 Detroit compares

  • The Detroit area ranks 1st of 15 Michigan metro areas for employer businesses.

  • The number of employer businesses grew 2.2% between 2018 and 2023.

  • Transportation and warehousing makes up 4% of employer businesses in Detroit, compared with 4% in Michigan.

  • 41,336 employer businesses here have 5 to 49 employees.

  • The Detroit area ranks 1st of 15 Michigan metro areas for employer businesses.

  • The number of employer businesses grew 2.2% between 2018 and 2023.

  • Transportation and warehousing makes up 4% of employer businesses in Detroit, compared with 4% in Michigan.

  • 41,336 employer businesses here have 5 to 49 employees.

Industry mix

The largest industries by number of employer businesses:

  • Retail: 14,016 employer businesses

  • Health care and social assistance: 13,890 employer businesses

  • Professional and technical services: 11,783 employer businesses

  • Repair, personal care and other services: 9,607 employer businesses

  • Accommodation and food service: 9,409 employer businesses

The largest industries by number of employer businesses:

  • Retail: 14,016 employer businesses

  • Health care and social assistance: 13,890 employer businesses

  • Professional and technical services: 11,783 employer businesses

  • Repair, personal care and other services: 9,607 employer businesses

  • Accommodation and food service: 9,409 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 Detroit

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

Every kind of business we sell in Detroit

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

10,036 related employer businesses in Detroit.

  • General Contracting: 2,689 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Landscaping: 1,711 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 1,465 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Plumbing: 1,107 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 1,107 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Civil Engineering: 942 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Electrical: 798 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Foundation & Site Prep: 594 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 286 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 255 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Carpentry & Framing: 127 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Remediation & Restoration: 62 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Restaurants & Food

9,430 related employer businesses in Detroit.

Medical Practices

9,191 related employer businesses in Detroit.

Financial & Professional Services

5,608 related employer businesses in Detroit.

Retail Stores

5,576 related employer businesses in Detroit.

Automotive & Boat

4,321 related employer businesses in Detroit.

  • Auto Repair: 1,691 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 949 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 650 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Collision Repair: 442 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 333 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 136 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 62 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

  • Marinas: 58 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

Logistics & Transportation

4,115 related employer businesses in Detroit.

Manufacturing

3,320 related employer businesses in Detroit.

Wholesale & Distribution

2,238 related employer businesses in Detroit.

Pharmacies & Medical Supply

2,127 related employer businesses in Detroit.

Gas Stations & Convenience

1,846 related employer businesses in Detroit.

Beauty & Personal Care

1,795 related employer businesses in Detroit.

  • Hair Salons: 1,112 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Day Spas: 396 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 396 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 396 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Nail Salons: 161 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Barber Shops: 126 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Home Services

1,678 related employer businesses in Detroit.

Technology & Media

1,407 related employer businesses in Detroit.

Education & Childcare

979 related employer businesses in Detroit.

  • Daycare Centers: 887 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 92 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Entertainment & Recreation

954 related employer businesses in Detroit.

  • Bars & Pubs: 458 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 458 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 232 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 130 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Bowling Alleys: 72 employer businesses here. Typical sale multiple: 3.0x - 5.0x EBITDA.

  • Arcades & FECs: 62 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • 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.

Hospitality & Travel

782 related employer businesses in Detroit.

  • Hotels: 446 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 446 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 208 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Travel Agencies: 109 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Campgrounds & RV Parks: 16 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

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

Senior Care & Living

763 related employer businesses in Detroit.

Health & Fitness

726 related employer businesses in Detroit.

Energy & Utilities

458 related employer businesses in Detroit.

Pet Services

414 related employer businesses in Detroit.

E-commerce & Online Businesses

Land & Agriculture

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

10,036 related employer businesses in Detroit.

  • General Contracting: 2,689 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Landscaping: 1,711 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 1,465 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Plumbing: 1,107 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 1,107 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Civil Engineering: 942 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Electrical: 798 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Foundation & Site Prep: 594 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 286 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 255 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Carpentry & Framing: 127 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Remediation & Restoration: 62 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Restaurants & Food

9,430 related employer businesses in Detroit.

Medical Practices

9,191 related employer businesses in Detroit.

Financial & Professional Services

5,608 related employer businesses in Detroit.

Retail Stores

5,576 related employer businesses in Detroit.

Automotive & Boat

4,321 related employer businesses in Detroit.

  • Auto Repair: 1,691 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 949 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 650 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Collision Repair: 442 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 333 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 136 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 62 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

  • Marinas: 58 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

Logistics & Transportation

4,115 related employer businesses in Detroit.

Manufacturing

3,320 related employer businesses in Detroit.

Wholesale & Distribution

2,238 related employer businesses in Detroit.

Pharmacies & Medical Supply

2,127 related employer businesses in Detroit.

Gas Stations & Convenience

1,846 related employer businesses in Detroit.

Beauty & Personal Care

1,795 related employer businesses in Detroit.

  • Hair Salons: 1,112 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Day Spas: 396 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 396 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 396 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Nail Salons: 161 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Barber Shops: 126 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Home Services

1,678 related employer businesses in Detroit.

Technology & Media

1,407 related employer businesses in Detroit.

Education & Childcare

979 related employer businesses in Detroit.

  • Daycare Centers: 887 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 92 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Entertainment & Recreation

954 related employer businesses in Detroit.

  • Bars & Pubs: 458 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 458 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 232 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 130 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Bowling Alleys: 72 employer businesses here. Typical sale multiple: 3.0x - 5.0x EBITDA.

  • Arcades & FECs: 62 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • 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.

Hospitality & Travel

782 related employer businesses in Detroit.

  • Hotels: 446 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 446 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 208 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Travel Agencies: 109 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Campgrounds & RV Parks: 16 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

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

Senior Care & Living

763 related employer businesses in Detroit.

Health & Fitness

726 related employer businesses in Detroit.

Energy & Utilities

458 related employer businesses in Detroit.

Pet Services

414 related employer businesses in Detroit.

E-commerce & Online Businesses

Land & Agriculture

Counties in this metro area

Working with owners in Detroit

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

FREQUENTLY ASKED QUESTIONS

Questions owners in Detroit ask

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

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 Detroit?

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 Detroit

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