Selling a Business in Los Angeles

Owners in the Los Angeles area sell to local buyers and to buyers from other markets. The area has 411,949 employer businesses, and 88% of them have fewer than 20 employees. This page shows what is here and how a sale is handled.

LOCAL SNAPSHOT

Los Angeles Area by the numbers

411,949

411,949

EMPLOYER BUSINESSES

88%

88%

SMALL EMPLOYER SHARE

1,499,723

1,499,723

BUSINESSES WITH NO EMPLOYEES

5,568,514

5,568,514

EMPLOYMENT

$418.3 billion

$418.3 billion

ANNUAL PAYROLL

135,676

135,676

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 Los Angeles Area compares

  • The Los Angeles area ranks 1st of 25 California metro areas for employer businesses.

  • The number of employer businesses grew 8.6% between 2018 and 2023.

  • Arts, entertainment and recreation makes up 6% of employer businesses in Los Angeles, compared with 3% in California.

  • 135,676 employer businesses here have 5 to 49 employees.

  • The Los Angeles area ranks 1st of 25 California metro areas for employer businesses.

  • The number of employer businesses grew 8.6% between 2018 and 2023.

  • Arts, entertainment and recreation makes up 6% of employer businesses in Los Angeles, compared with 3% in California.

  • 135,676 employer businesses here have 5 to 49 employees.

Industry mix

The largest industries by number of employer businesses:

  • Professional and technical services: 61,848 employer businesses

  • Health care and social assistance: 53,869 employer businesses

  • Retail: 38,838 employer businesses

  • Accommodation and food service: 34,060 employer businesses

  • Repair, personal care and other services: 30,755 employer businesses

The largest industries by number of employer businesses:

  • Professional and technical services: 61,848 employer businesses

  • Health care and social assistance: 53,869 employer businesses

  • Retail: 38,838 employer businesses

  • Accommodation and food service: 34,060 employer businesses

  • Repair, personal care and other services: 30,755 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

Every kind of business we sell in Los Angeles Area

We sell businesses in every one of these industries in Los Angeles. 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.

Medical Practices

37,139 related employer businesses in Los Angeles.

Restaurants & Food

33,696 related employer businesses in Los Angeles.

Construction & Engineering

28,091 related employer businesses in Los Angeles.

  • General Contracting: 9,357 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Interior Finishing: 4,057 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Plumbing: 3,793 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 3,793 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Electrical: 3,229 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 2,983 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Landscaping: 2,038 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Foundation & Site Prep: 1,026 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 827 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 346 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Carpentry & Framing: 247 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Remediation & Restoration: 188 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Financial & Professional Services

27,630 related employer businesses in Los Angeles.

Technology & Media

17,728 related employer businesses in Los Angeles.

Retail Stores

16,600 related employer businesses in Los Angeles.

Wholesale & Distribution

14,283 related employer businesses in Los Angeles.

Logistics & Transportation

13,067 related employer businesses in Los Angeles.

Manufacturing

11,872 related employer businesses in Los Angeles.

Automotive & Boat

9,989 related employer businesses in Los Angeles.

  • Auto Repair: 3,905 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 2,037 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Collision Repair: 1,542 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Dealerships: 1,202 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Car Washes: 821 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 363 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 63 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

  • Marinas: 56 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

Home Services

8,330 related employer businesses in Los Angeles.

Beauty & Personal Care

8,171 related employer businesses in Los Angeles.

  • Hair Salons: 3,689 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Nail Salons: 2,674 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Day Spas: 1,573 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 1,573 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 1,573 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 235 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Pharmacies & Medical Supply

6,055 related employer businesses in Los Angeles.

Education & Childcare

3,491 related employer businesses in Los Angeles.

  • Daycare Centers: 2,639 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 852 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Gas Stations & Convenience

3,381 related employer businesses in Los Angeles.

  • Gas Stations: 2,284 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA + Real Estate.

  • Convenience Stores: 1,097 employer businesses here. Typical sale multiple: 2.5x - 3.5x SDE + Inventory.

  • Truck Stops & Travel Centers. Typical sale multiple: 3.5x - 5.5x EBITDA + Real Estate.

Hospitality & Travel

3,376 related employer businesses in Los Angeles.

  • Hotels: 1,770 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 1,770 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 889 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Travel Agencies: 671 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Campgrounds & RV Parks: 32 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

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

Health & Fitness

3,054 related employer businesses in Los Angeles.

Senior Care & Living

2,798 related employer businesses in Los Angeles.

Entertainment & Recreation

1,976 related employer businesses in Los Angeles.

  • Bars & Pubs: 982 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 982 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 668 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 139 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Arcades & FECs: 133 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 54 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

1,332 related employer businesses in Los Angeles.

Energy & Utilities

983 related employer businesses in Los Angeles.

Land & Agriculture

4 related employer businesses in Los Angeles.

E-commerce & Online Businesses

We sell businesses in every one of these industries in Los Angeles. 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.

Medical Practices

37,139 related employer businesses in Los Angeles.

Restaurants & Food

33,696 related employer businesses in Los Angeles.

Construction & Engineering

28,091 related employer businesses in Los Angeles.

  • General Contracting: 9,357 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Interior Finishing: 4,057 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Plumbing: 3,793 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 3,793 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Electrical: 3,229 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 2,983 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Landscaping: 2,038 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Foundation & Site Prep: 1,026 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 827 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 346 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Carpentry & Framing: 247 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Remediation & Restoration: 188 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Financial & Professional Services

27,630 related employer businesses in Los Angeles.

Technology & Media

17,728 related employer businesses in Los Angeles.

Retail Stores

16,600 related employer businesses in Los Angeles.

Wholesale & Distribution

14,283 related employer businesses in Los Angeles.

Logistics & Transportation

13,067 related employer businesses in Los Angeles.

Manufacturing

11,872 related employer businesses in Los Angeles.

Automotive & Boat

9,989 related employer businesses in Los Angeles.

  • Auto Repair: 3,905 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 2,037 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Collision Repair: 1,542 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Dealerships: 1,202 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Car Washes: 821 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 363 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 63 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

  • Marinas: 56 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

Home Services

8,330 related employer businesses in Los Angeles.

Beauty & Personal Care

8,171 related employer businesses in Los Angeles.

  • Hair Salons: 3,689 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Nail Salons: 2,674 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Day Spas: 1,573 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 1,573 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 1,573 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 235 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Pharmacies & Medical Supply

6,055 related employer businesses in Los Angeles.

Education & Childcare

3,491 related employer businesses in Los Angeles.

  • Daycare Centers: 2,639 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 852 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Gas Stations & Convenience

3,381 related employer businesses in Los Angeles.

  • Gas Stations: 2,284 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA + Real Estate.

  • Convenience Stores: 1,097 employer businesses here. Typical sale multiple: 2.5x - 3.5x SDE + Inventory.

  • Truck Stops & Travel Centers. Typical sale multiple: 3.5x - 5.5x EBITDA + Real Estate.

Hospitality & Travel

3,376 related employer businesses in Los Angeles.

  • Hotels: 1,770 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 1,770 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 889 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Travel Agencies: 671 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Campgrounds & RV Parks: 32 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

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

Health & Fitness

3,054 related employer businesses in Los Angeles.

Senior Care & Living

2,798 related employer businesses in Los Angeles.

Entertainment & Recreation

1,976 related employer businesses in Los Angeles.

  • Bars & Pubs: 982 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 982 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 668 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 139 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Arcades & FECs: 133 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 54 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

1,332 related employer businesses in Los Angeles.

Energy & Utilities

983 related employer businesses in Los Angeles.

Land & Agriculture

4 related employer businesses in Los Angeles.

E-commerce & Online Businesses

Counties in this metro area

Working with owners in Los Angeles Area

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

FREQUENTLY ASKED QUESTIONS

Questions owners in Los Angeles Area ask

How long does it take to sell a business in Los Angeles?

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 Los Angeles?

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 Los Angeles Area

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