Selling a Business in Santa Cruz

Owners in the Santa Cruz area sell to local buyers and to buyers from other markets. The area has 7,136 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

Santa Cruz by the numbers

7,136

7,136

EMPLOYER BUSINESSES

88%

88%

SMALL EMPLOYER SHARE

23,111

23,111

BUSINESSES WITH NO EMPLOYEES

80,209

80,209

EMPLOYMENT

$5.0 billion

$5.0 billion

ANNUAL PAYROLL

2,860

2,860

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 Santa Cruz compares

  • The Santa Cruz area ranks 18th of 25 California metro areas for employer businesses.

  • The number of employer businesses grew 1.2% between 2018 and 2023.

  • Construction makes up 13% of employer businesses in Santa Cruz, compared with 8% in California.

  • 2,860 employer businesses here have 5 to 49 employees.

  • The Santa Cruz area ranks 18th of 25 California metro areas for employer businesses.

  • The number of employer businesses grew 1.2% between 2018 and 2023.

  • Construction makes up 13% of employer businesses in Santa Cruz, compared with 8% in California.

  • 2,860 employer businesses here have 5 to 49 employees.

Industry mix

The largest industries by number of employer businesses:

  • Health care and social assistance: 959 employer businesses

  • Professional and technical services: 910 employer businesses

  • Construction: 899 employer businesses

  • Retail: 809 employer businesses

  • Accommodation and food service: 726 employer businesses

The largest industries by number of employer businesses:

  • Health care and social assistance: 959 employer businesses

  • Professional and technical services: 910 employer businesses

  • Construction: 899 employer businesses

  • Retail: 809 employer businesses

  • Accommodation and food service: 726 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 Santa Cruz

We sell businesses in every one of these industries in Santa Cruz. 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

1,043 related employer businesses in Santa Cruz.

  • General Contracting: 354 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Interior Finishing: 173 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Landscaping: 140 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Plumbing: 103 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 103 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Electrical: 95 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 71 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Foundation & Site Prep: 41 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 29 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Carpentry & Framing: 19 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Masonry: 14 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Remediation & Restoration: 4 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Restaurants & Food

666 related employer businesses in Santa Cruz.

Medical Practices

534 related employer businesses in Santa Cruz.

Financial & Professional Services

424 related employer businesses in Santa Cruz.

Retail Stores

364 related employer businesses in Santa Cruz.

Manufacturing

231 related employer businesses in Santa Cruz.

Automotive & Boat

181 related employer businesses in Santa Cruz.

  • Auto Repair: 85 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Collision Repair: 32 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Auto Parts: 25 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 20 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Car Washes: 10 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 6 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 3 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

Education & Childcare

149 related employer businesses in Santa Cruz.

  • Daycare Centers: 131 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 18 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Home Services

145 related employer businesses in Santa Cruz.

Technology & Media

125 related employer businesses in Santa Cruz.

Wholesale & Distribution

122 related employer businesses in Santa Cruz.

Beauty & Personal Care

105 related employer businesses in Santa Cruz.

  • Hair Salons: 52 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Day Spas: 24 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Nail Salons: 24 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Tattoo Shops: 24 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 24 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 5 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Hospitality & Travel

103 related employer businesses in Santa Cruz.

  • Hotels: 78 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 78 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 8 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

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

  • Campgrounds & RV Parks: 6 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Bed & Breakfasts / Inns: 4 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

Logistics & Transportation

86 related employer businesses in Santa Cruz.

Health & Fitness

76 related employer businesses in Santa Cruz.

Gas Stations & Convenience

71 related employer businesses in Santa Cruz.

Entertainment & Recreation

62 related employer businesses in Santa Cruz.

  • Bars & Pubs: 42 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 42 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 14 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 6 employer businesses here. Typical sale multiple: 8.0x - 11.0x 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

60 related employer businesses in Santa Cruz.

Pharmacies & Medical Supply

58 related employer businesses in Santa Cruz.

Energy & Utilities

32 related employer businesses in Santa Cruz.

Pet Services

32 related employer businesses in Santa Cruz.

E-commerce & Online Businesses

Land & Agriculture

We sell businesses in every one of these industries in Santa Cruz. 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

1,043 related employer businesses in Santa Cruz.

  • General Contracting: 354 employer businesses here. Typical sale multiple: 3.0x - 4.5x SDE.

  • Interior Finishing: 173 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Landscaping: 140 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Plumbing: 103 employer businesses here. Typical sale multiple: 3.5x - 5.0x SDE.

  • HVAC Services: 103 employer businesses here. Typical sale multiple: 4.6x - 7.0x EBITDA.

  • Electrical: 95 employer businesses here. Typical sale multiple: 4.0x - 8.0x EBITDA.

  • Civil Engineering: 71 employer businesses here. Typical sale multiple: 7.0x - 11.0x EBITDA.

  • Foundation & Site Prep: 41 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Fleet.

  • Roofing & Siding: 29 employer businesses here. Typical sale multiple: 3.0x - 5.0x SDE.

  • Carpentry & Framing: 19 employer businesses here. Typical sale multiple: 2.5x - 4.0x SDE.

  • Masonry: 14 employer businesses here. Typical sale multiple: 2.5x - 4.0x EBITDA + Equipment.

  • Remediation & Restoration: 4 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

Restaurants & Food

666 related employer businesses in Santa Cruz.

Medical Practices

534 related employer businesses in Santa Cruz.

Financial & Professional Services

424 related employer businesses in Santa Cruz.

Retail Stores

364 related employer businesses in Santa Cruz.

Manufacturing

231 related employer businesses in Santa Cruz.

Automotive & Boat

181 related employer businesses in Santa Cruz.

  • Auto Repair: 85 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE.

  • Collision Repair: 32 employer businesses here. Typical sale multiple: 3.5x - 5.0x EBITDA.

  • Auto Parts: 25 employer businesses here. Typical sale multiple: 2.5x - 3.2x SDE + Inventory.

  • Car Dealerships: 20 employer businesses here. Typical sale multiple: 2x - 8x Blue Sky + Assets.

  • Car Washes: 10 employer businesses here. Typical sale multiple: 4.5x - 7.0x EBITDA.

  • Towing & Repo: 6 employer businesses here. Typical sale multiple: 3.0x - 4.0x EBITDA + Fleet.

  • Boat Dealerships: 3 employer businesses here. Typical sale multiple: 3.0x - 4.5x EBITDA.

Education & Childcare

149 related employer businesses in Santa Cruz.

  • Daycare Centers: 131 employer businesses here. Typical sale multiple: 2.39x - 3.35x SDE.

  • Tutoring Centers: 18 employer businesses here. Typical sale multiple: 2.0x - 3.5x SDE.

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

Home Services

145 related employer businesses in Santa Cruz.

Technology & Media

125 related employer businesses in Santa Cruz.

Wholesale & Distribution

122 related employer businesses in Santa Cruz.

Beauty & Personal Care

105 related employer businesses in Santa Cruz.

  • Hair Salons: 52 employer businesses here. Typical sale multiple: 1.25x - 2.34x SDE.

  • Day Spas: 24 employer businesses here. Typical sale multiple: 1.8x - 2.8x SDE.

  • Nail Salons: 24 employer businesses here. Typical sale multiple: 1.4x - 1.88x SDE.

  • Tattoo Shops: 24 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Massage Parlors: 24 employer businesses here. Typical sale multiple: 1.5x - 2.5x SDE.

  • Barber Shops: 5 employer businesses here. Typical sale multiple: 1.5x - 2.25x SDE.

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

Hospitality & Travel

103 related employer businesses in Santa Cruz.

  • Hotels: 78 employer businesses here. Typical sale multiple: 2.6x - 5.1x EBITDA.

  • Motels: 78 employer businesses here. Typical sale multiple: 1.1x - 2.5x SDE.

  • Transportation Services: 8 employer businesses here. Typical sale multiple: 2.0x - 4.1x SDE.

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

  • Campgrounds & RV Parks: 6 employer businesses here. Typical sale multiple: 4.0x - 7.0x EBITDA.

  • Bed & Breakfasts / Inns: 4 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

Logistics & Transportation

86 related employer businesses in Santa Cruz.

Health & Fitness

76 related employer businesses in Santa Cruz.

Gas Stations & Convenience

71 related employer businesses in Santa Cruz.

Entertainment & Recreation

62 related employer businesses in Santa Cruz.

  • Bars & Pubs: 42 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Clubs & Lounges: 42 employer businesses here. Typical sale multiple: 3.0x - 6.0x EBITDA.

  • Outdoor Recreation: 14 employer businesses here. Typical sale multiple: 2.0x - 4.0x SDE.

  • Golf Courses: 6 employer businesses here. Typical sale multiple: 8.0x - 11.0x 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

60 related employer businesses in Santa Cruz.

Pharmacies & Medical Supply

58 related employer businesses in Santa Cruz.

Energy & Utilities

32 related employer businesses in Santa Cruz.

Pet Services

32 related employer businesses in Santa Cruz.

E-commerce & Online Businesses

Land & Agriculture

Counties in this metro area

Working with owners in Santa Cruz

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

FREQUENTLY ASKED QUESTIONS

Questions owners in Santa Cruz ask

How long does it take to sell a business in Santa Cruz?

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 Santa Cruz?

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 Santa Cruz

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