Selling a Business in Memphis

Owners in the Memphis area sell to local buyers and to buyers from other markets. The area has 26,131 employer businesses, and 80% of them have fewer than 20 employees. This page shows what is here and how a sale is handled.

LOCAL SNAPSHOT

Memphis by the numbers

26,131

26,131

EMPLOYER BUSINESSES

80%

80%

SMALL EMPLOYER SHARE

144,989

144,989

BUSINESSES WITH NO EMPLOYEES

561,551

561,551

EMPLOYMENT

$34.0 billion

$34.0 billion

ANNUAL PAYROLL

12,236

12,236

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 Memphis compares

  • The Memphis area ranks 2nd of 10 Tennessee metro areas for employer businesses.

  • The number of employer businesses grew 1.8% between 2018 and 2023.

  • Transportation and warehousing makes up 6% of employer businesses in Memphis, compared with 4% in Tennessee.

  • 12,236 employer businesses here have 5 to 49 employees.

  • The Memphis area ranks 2nd of 10 Tennessee metro areas for employer businesses.

  • The number of employer businesses grew 1.8% between 2018 and 2023.

  • Transportation and warehousing makes up 6% of employer businesses in Memphis, compared with 4% in Tennessee.

  • 12,236 employer businesses here have 5 to 49 employees.

Industry mix

The largest industries by number of employer businesses:

  • Retail: 4,218 employer businesses

  • Health care and social assistance: 2,992 employer businesses

  • Accommodation and food service: 2,788 employer businesses

  • Repair, personal care and other services: 2,597 employer businesses

  • Professional and technical services: 1,950 employer businesses

The largest industries by number of employer businesses:

  • Retail: 4,218 employer businesses

  • Health care and social assistance: 2,992 employer businesses

  • Accommodation and food service: 2,788 employer businesses

  • Repair, personal care and other services: 2,597 employer businesses

  • Professional and technical services: 1,950 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 Memphis

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

Every kind of business we sell in Memphis

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

2,581 related employer businesses in Memphis.

Construction & Engineering

1,873 related employer businesses in Memphis.

  • General Contracting: 438 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Plumbing: 349 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 349 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Landscaping: 296 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 218 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Electrical: 218 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Foundation & Site Prep: 114 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Civil Engineering: 108 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Roofing & Siding: 80 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 28 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Remediation & Restoration: 17 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Carpentry & Framing: 7 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

Medical Practices

1,824 related employer businesses in Memphis.

Retail Stores

1,520 related employer businesses in Memphis.

Logistics & Transportation

1,506 related employer businesses in Memphis.

Financial & Professional Services

1,356 related employer businesses in Memphis.

Automotive & Boat

928 related employer businesses in Memphis.

  • Auto Repair: 308 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 233 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 158 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Collision Repair: 106 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 63 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 51 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.

Gas Stations & Convenience

856 related employer businesses in Memphis.

Wholesale & Distribution

712 related employer businesses in Memphis.

Manufacturing

651 related employer businesses in Memphis.

Home Services

553 related employer businesses in Memphis.

Beauty & Personal Care

417 related employer businesses in Memphis.

  • Hair Salons: 202 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Nail Salons: 106 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Day Spas: 91 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 91 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 91 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 18 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Hospitality & Travel

349 related employer businesses in Memphis.

  • Hotels: 284 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 284 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 42 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Travel Agencies: 15 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Campgrounds & RV Parks: 5 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.

Education & Childcare

348 related employer businesses in Memphis.

  • Daycare Centers: 311 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 37 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Pharmacies & Medical Supply

343 related employer businesses in Memphis.

Technology & Media

243 related employer businesses in Memphis.

Health & Fitness

217 related employer businesses in Memphis.

Senior Care & Living

167 related employer businesses in Memphis.

Entertainment & Recreation

149 related employer businesses in Memphis.

  • Outdoor Recreation: 59 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Bars & Pubs: 51 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 51 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

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

  • Arcades & FECs: 8 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 5 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

126 related employer businesses in Memphis.

Pet Services

85 related employer businesses in Memphis.

E-commerce & Online Businesses

Land & Agriculture

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

2,581 related employer businesses in Memphis.

Construction & Engineering

1,873 related employer businesses in Memphis.

  • General Contracting: 438 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Plumbing: 349 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 349 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Landscaping: 296 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 218 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Electrical: 218 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Foundation & Site Prep: 114 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Civil Engineering: 108 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Roofing & Siding: 80 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 28 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Remediation & Restoration: 17 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Carpentry & Framing: 7 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

Medical Practices

1,824 related employer businesses in Memphis.

Retail Stores

1,520 related employer businesses in Memphis.

Logistics & Transportation

1,506 related employer businesses in Memphis.

Financial & Professional Services

1,356 related employer businesses in Memphis.

Automotive & Boat

928 related employer businesses in Memphis.

  • Auto Repair: 308 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 233 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 158 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Collision Repair: 106 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 63 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 51 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.

Gas Stations & Convenience

856 related employer businesses in Memphis.

Wholesale & Distribution

712 related employer businesses in Memphis.

Manufacturing

651 related employer businesses in Memphis.

Home Services

553 related employer businesses in Memphis.

Beauty & Personal Care

417 related employer businesses in Memphis.

  • Hair Salons: 202 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Nail Salons: 106 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Day Spas: 91 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 91 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 91 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 18 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Hospitality & Travel

349 related employer businesses in Memphis.

  • Hotels: 284 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 284 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 42 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Travel Agencies: 15 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Campgrounds & RV Parks: 5 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.

Education & Childcare

348 related employer businesses in Memphis.

  • Daycare Centers: 311 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 37 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Pharmacies & Medical Supply

343 related employer businesses in Memphis.

Technology & Media

243 related employer businesses in Memphis.

Health & Fitness

217 related employer businesses in Memphis.

Senior Care & Living

167 related employer businesses in Memphis.

Entertainment & Recreation

149 related employer businesses in Memphis.

  • Outdoor Recreation: 59 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Bars & Pubs: 51 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 51 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

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

  • Arcades & FECs: 8 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 5 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

126 related employer businesses in Memphis.

Pet Services

85 related employer businesses in Memphis.

E-commerce & Online Businesses

Land & Agriculture

Counties in this metro area

Working with owners in Memphis

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

FREQUENTLY ASKED QUESTIONS

Questions owners in Memphis ask

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

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 Memphis?

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 Memphis

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