Selling a Business in Philadelphia

Owners in the Philadelphia area sell to local buyers and to buyers from other markets. The area has 153,791 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

Philadelphia by the numbers

153,791

153,791

EMPLOYER BUSINESSES

84%

84%

SMALL EMPLOYER SHARE

548,345

548,345

BUSINESSES WITH NO EMPLOYEES

2,873,871

2,873,871

EMPLOYMENT

$207.3 billion

$207.3 billion

ANNUAL PAYROLL

60,586

60,586

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 Philadelphia compares

  • The Philadelphia area ranks 1st of 16 Pennsylvania metro areas for employer businesses.

  • The number of employer businesses grew 3.4% between 2018 and 2023.

  • Professional and technical services makes up 13% of employer businesses in Philadelphia, compared with 10% in Pennsylvania.

  • 60,586 employer businesses here have 5 to 49 employees.

  • The Philadelphia area ranks 1st of 16 Pennsylvania metro areas for employer businesses.

  • The number of employer businesses grew 3.4% between 2018 and 2023.

  • Professional and technical services makes up 13% of employer businesses in Philadelphia, compared with 10% in Pennsylvania.

  • 60,586 employer businesses here have 5 to 49 employees.

Industry mix

The largest industries by number of employer businesses:

  • Health care and social assistance: 19,759 employer businesses

  • Professional and technical services: 19,559 employer businesses

  • Retail: 18,474 employer businesses

  • Repair, personal care and other services: 16,108 employer businesses

  • Construction: 14,143 employer businesses

The largest industries by number of employer businesses:

  • Health care and social assistance: 19,759 employer businesses

  • Professional and technical services: 19,559 employer businesses

  • Retail: 18,474 employer businesses

  • Repair, personal care and other services: 16,108 employer businesses

  • Construction: 14,143 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 Philadelphia

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

16,510 related employer businesses in Philadelphia.

  • General Contracting: 4,750 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Landscaping: 2,642 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 2,217 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Plumbing: 2,118 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 2,118 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Electrical: 1,496 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 1,190 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Foundation & Site Prep: 785 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 568 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 458 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Carpentry & Framing: 144 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Remediation & Restoration: 142 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Restaurants & Food

13,755 related employer businesses in Philadelphia.

Medical Practices

10,923 related employer businesses in Philadelphia.

Financial & Professional Services

8,480 related employer businesses in Philadelphia.

Retail Stores

7,459 related employer businesses in Philadelphia.

Automotive & Boat

4,960 related employer businesses in Philadelphia.

  • Auto Repair: 2,182 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Car Dealerships: 758 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Auto Parts: 720 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Collision Repair: 691 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 337 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 210 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Marinas: 34 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

  • Boat Dealerships: 28 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

Beauty & Personal Care

4,399 related employer businesses in Philadelphia.

  • Hair Salons: 2,170 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Nail Salons: 1,333 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Day Spas: 655 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 655 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 655 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 241 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Logistics & Transportation

4,087 related employer businesses in Philadelphia.

Manufacturing

3,826 related employer businesses in Philadelphia.

Wholesale & Distribution

3,415 related employer businesses in Philadelphia.

Home Services

2,893 related employer businesses in Philadelphia.

Technology & Media

2,512 related employer businesses in Philadelphia.

Pharmacies & Medical Supply

2,349 related employer businesses in Philadelphia.

Education & Childcare

2,211 related employer businesses in Philadelphia.

  • Daycare Centers: 2,011 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 200 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Gas Stations & Convenience

2,194 related employer businesses in Philadelphia.

  • Gas Stations: 1,165 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA + Real Estate.

  • Convenience Stores: 1,029 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.

Senior Care & Living

1,598 related employer businesses in Philadelphia.

Health & Fitness

1,562 related employer businesses in Philadelphia.

Entertainment & Recreation

1,466 related employer businesses in Philadelphia.

  • Bars & Pubs: 785 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 785 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 428 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 150 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Arcades & FECs: 63 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 40 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.

Hospitality & Travel

1,121 related employer businesses in Philadelphia.

  • Hotels: 500 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 500 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 391 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Travel Agencies: 183 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Campgrounds & RV Parks: 25 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Bed & Breakfasts / Inns: 22 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

Energy & Utilities

789 related employer businesses in Philadelphia.

Pet Services

665 related employer businesses in Philadelphia.

Land & Agriculture

10 related employer businesses in Philadelphia.

E-commerce & Online Businesses

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

16,510 related employer businesses in Philadelphia.

  • General Contracting: 4,750 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Landscaping: 2,642 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Interior Finishing: 2,217 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Plumbing: 2,118 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 2,118 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Electrical: 1,496 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 1,190 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Foundation & Site Prep: 785 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 568 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Masonry: 458 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Carpentry & Framing: 144 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Remediation & Restoration: 142 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Restaurants & Food

13,755 related employer businesses in Philadelphia.

Medical Practices

10,923 related employer businesses in Philadelphia.

Financial & Professional Services

8,480 related employer businesses in Philadelphia.

Retail Stores

7,459 related employer businesses in Philadelphia.

Automotive & Boat

4,960 related employer businesses in Philadelphia.

  • Auto Repair: 2,182 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Car Dealerships: 758 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Auto Parts: 720 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Collision Repair: 691 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Car Washes: 337 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 210 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Marinas: 34 employer businesses here. Typical sale multiple: Cap Rate or 4.0x - 7.0x EBITDA.

  • Boat Dealerships: 28 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

Beauty & Personal Care

4,399 related employer businesses in Philadelphia.

  • Hair Salons: 2,170 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Nail Salons: 1,333 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Day Spas: 655 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Tattoo Shops: 655 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 655 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 241 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Logistics & Transportation

4,087 related employer businesses in Philadelphia.

Manufacturing

3,826 related employer businesses in Philadelphia.

Wholesale & Distribution

3,415 related employer businesses in Philadelphia.

Home Services

2,893 related employer businesses in Philadelphia.

Technology & Media

2,512 related employer businesses in Philadelphia.

Pharmacies & Medical Supply

2,349 related employer businesses in Philadelphia.

Education & Childcare

2,211 related employer businesses in Philadelphia.

  • Daycare Centers: 2,011 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 200 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Gas Stations & Convenience

2,194 related employer businesses in Philadelphia.

  • Gas Stations: 1,165 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA + Real Estate.

  • Convenience Stores: 1,029 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.

Senior Care & Living

1,598 related employer businesses in Philadelphia.

Health & Fitness

1,562 related employer businesses in Philadelphia.

Entertainment & Recreation

1,466 related employer businesses in Philadelphia.

  • Bars & Pubs: 785 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 785 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 428 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 150 employer businesses here. Typical sale multiple: 8.0x - 11.0x EBITDA.

  • Arcades & FECs: 63 employer businesses here. Typical sale multiple: 2.1x - 3.6x SDE.

  • Bowling Alleys: 40 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.

Hospitality & Travel

1,121 related employer businesses in Philadelphia.

  • Hotels: 500 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 500 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 391 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

  • Travel Agencies: 183 employer businesses here. Typical sale multiple: 2.3x - 3.2x SDE.

  • Campgrounds & RV Parks: 25 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Bed & Breakfasts / Inns: 22 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

Energy & Utilities

789 related employer businesses in Philadelphia.

Pet Services

665 related employer businesses in Philadelphia.

Land & Agriculture

10 related employer businesses in Philadelphia.

E-commerce & Online Businesses

Counties in this metro area

Working with owners in Philadelphia

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

FREQUENTLY ASKED QUESTIONS

Questions owners in Philadelphia ask

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

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 Philadelphia?

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 Philadelphia

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