Selling a Business in Montgomery

Owners in the Montgomery area sell to local buyers and to buyers from other markets. The area has 7,970 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

Montgomery by the numbers

7,970

7,970

EMPLOYER BUSINESSES

83%

83%

SMALL EMPLOYER SHARE

28,499

28,499

BUSINESSES WITH NO EMPLOYEES

133,691

133,691

EMPLOYMENT

$6.8 billion

$6.8 billion

ANNUAL PAYROLL

3,564

3,564

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 Montgomery compares

  • The Montgomery area ranks 4th of 12 Alabama metro areas for employer businesses.

  • The number of employer businesses grew 3.9% between 2018 and 2023.

  • Repair, personal care and other services makes up 12% of employer businesses in Montgomery, compared with 11% in Alabama.

  • 3,564 employer businesses here have 5 to 49 employees.

  • The Montgomery area ranks 4th of 12 Alabama metro areas for employer businesses.

  • The number of employer businesses grew 3.9% between 2018 and 2023.

  • Repair, personal care and other services makes up 12% of employer businesses in Montgomery, compared with 11% in Alabama.

  • 3,564 employer businesses here have 5 to 49 employees.

Industry mix

The largest industries by number of employer businesses:

  • Retail: 1,328 employer businesses

  • Repair, personal care and other services: 939 employer businesses

  • Health care and social assistance: 912 employer businesses

  • Accommodation and food service: 799 employer businesses

  • Professional and technical services: 749 employer businesses

The largest industries by number of employer businesses:

  • Retail: 1,328 employer businesses

  • Repair, personal care and other services: 939 employer businesses

  • Health care and social assistance: 912 employer businesses

  • Accommodation and food service: 799 employer businesses

  • Professional and technical services: 749 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 Montgomery

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

Every kind of business we sell in Montgomery

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

716 related employer businesses in Montgomery.

Construction & Engineering

645 related employer businesses in Montgomery.

  • General Contracting: 173 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Plumbing: 100 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 100 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Landscaping: 81 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Electrical: 75 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Interior Finishing: 68 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Civil Engineering: 63 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Foundation & Site Prep: 49 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 25 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 7 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Carpentry & Framing: 4 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

Medical Practices

523 related employer businesses in Montgomery.

Retail Stores

481 related employer businesses in Montgomery.

Financial & Professional Services

435 related employer businesses in Montgomery.

Gas Stations & Convenience

294 related employer businesses in Montgomery.

Automotive & Boat

292 related employer businesses in Montgomery.

  • Auto Repair: 83 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 77 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 60 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: 22 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 9 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 4 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

Logistics & Transportation

221 related employer businesses in Montgomery.

Manufacturing

198 related employer businesses in Montgomery.

Wholesale & Distribution

156 related employer businesses in Montgomery.

Home Services

152 related employer businesses in Montgomery.

Hospitality & Travel

121 related employer businesses in Montgomery.

  • Hotels: 101 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 101 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Travel Agencies: 7 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Transportation Services: 7 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

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

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

Education & Childcare

119 related employer businesses in Montgomery.

  • Daycare Centers: 103 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 16 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Beauty & Personal Care

114 related employer businesses in Montgomery.

  • Hair Salons: 62 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Nail Salons: 30 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Day Spas: 18 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 18 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 18 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 4 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Pharmacies & Medical Supply

102 related employer businesses in Montgomery.

Technology & Media

77 related employer businesses in Montgomery.

Energy & Utilities

52 related employer businesses in Montgomery.

Health & Fitness

52 related employer businesses in Montgomery.

Entertainment & Recreation

44 related employer businesses in Montgomery.

  • Bars & Pubs: 22 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 22 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 12 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 7 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • 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.

Senior Care & Living

42 related employer businesses in Montgomery.

Pet Services

25 related employer businesses in Montgomery.

E-commerce & Online Businesses

Land & Agriculture

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

716 related employer businesses in Montgomery.

Construction & Engineering

645 related employer businesses in Montgomery.

  • General Contracting: 173 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Plumbing: 100 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 100 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Landscaping: 81 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Electrical: 75 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Interior Finishing: 68 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Civil Engineering: 63 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Foundation & Site Prep: 49 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 25 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 7 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Carpentry & Framing: 4 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

Medical Practices

523 related employer businesses in Montgomery.

Retail Stores

481 related employer businesses in Montgomery.

Financial & Professional Services

435 related employer businesses in Montgomery.

Gas Stations & Convenience

294 related employer businesses in Montgomery.

Automotive & Boat

292 related employer businesses in Montgomery.

  • Auto Repair: 83 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Auto Parts: 77 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 60 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: 22 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 9 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 4 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

Logistics & Transportation

221 related employer businesses in Montgomery.

Manufacturing

198 related employer businesses in Montgomery.

Wholesale & Distribution

156 related employer businesses in Montgomery.

Home Services

152 related employer businesses in Montgomery.

Hospitality & Travel

121 related employer businesses in Montgomery.

  • Hotels: 101 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 101 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Travel Agencies: 7 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Transportation Services: 7 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

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

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

Education & Childcare

119 related employer businesses in Montgomery.

  • Daycare Centers: 103 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 16 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Beauty & Personal Care

114 related employer businesses in Montgomery.

  • Hair Salons: 62 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Nail Salons: 30 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Day Spas: 18 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 18 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 18 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 4 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Pharmacies & Medical Supply

102 related employer businesses in Montgomery.

Technology & Media

77 related employer businesses in Montgomery.

Energy & Utilities

52 related employer businesses in Montgomery.

Health & Fitness

52 related employer businesses in Montgomery.

Entertainment & Recreation

44 related employer businesses in Montgomery.

  • Bars & Pubs: 22 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 22 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 12 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 7 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • 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.

Senior Care & Living

42 related employer businesses in Montgomery.

Pet Services

25 related employer businesses in Montgomery.

E-commerce & Online Businesses

Land & Agriculture

Counties in this metro area

Working with owners in Montgomery

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

FREQUENTLY ASKED QUESTIONS

Questions owners in Montgomery ask

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

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 Montgomery?

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 Montgomery

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