Which industries are best for a first-time business buyer?

First-time buyers usually do best in established, cash-flowing service businesses with recurring revenue and a workforce that stays after closing, HVAC, plumbing, landscaping maintenance, and laundromats are common entry points. They sell at moderate SDE multiples (roughly 2.5x to 4.7x), qualify for SBA 7(a) financing with about 10% down, and have durable demand that does not depend on the owner being present every day.

What multiple do small businesses sell for?

Most Main Street businesses under about 2 million dollars in price sell for a multiple of seller's discretionary earnings (SDE). Typical ranges run from about 2.5x for owner-heavy trades to over 4.7x for semi-passive, membership-driven models like car washes and laundromats. Larger businesses shift to an EBITDA multiple, which is usually higher.

How much money do you need to buy a business?

With an SBA 7(a) loan you generally need a minimum 10% equity injection, and up to half of that can come from a seller note on full standby, so on a 1 million dollar business your own cash could be as little as 50,000 dollars plus closing costs and working capital reserves.

How to Buy a Business, by Industry, 2026 Playbooks

2026 SDE multiples at a glance

The multiple is the single biggest driver of price. It rewards recurring revenue and businesses that run without the owner, and it penalizes trades that live and die on the founder's tool belt. Here is where our five deep-dive industries sit:

Median SDE multiple by industry, Acquisition Ace market data and cited industry sources, 2026
Industry	Median SDE multiple	Why it prices there
Car wash	4.73×	Membership recurring revenue, low labor, real estate
Laundromat	4.12×	Semi-passive, recession-resistant, cash-flowing
HVAC	2.80×	Service contracts, but labor- and owner-heavy
Trucking	3.11×	Asset-backed freight; drivers and lanes decide durability
Electrical	2.94×	Trades economics plus the electrification tailwind
Home care	2.84×	Demographic demand; caregiver supply is the constraint
Construction	2.56×	Backlog quality and WIP honesty set the real price
Insurance agency	3.18–4.33×	Renewal book recurs; priced on revenue as much as earnings
Junk removal	2–3×	Reviews, routes and contracts are the moat; buy-vs-start question
Pharmacy	2.25–2.97×	Script file recurs, but payers set the margins
Funeral home	1.99–3.22×	Generational demand, real estate, pre-need trust diligence
Self-storage	3.36×	Real-estate-heavy, rent-roll driven; 504-financeable (sold-transaction median)
Dental practice	2–4×	Recurring hygiene revenue; licensed-dentist ownership in most states
Plumbing	2.62×	Steady demand, but license-holder dependent
Landscaping	2.56×	Seasonal, labor-intensive; contracts lift it

See the full, sourced dataset on industry multiples. Larger businesses shift from an SDE multiple to an EBITDA multiple, which typically runs higher.

Two businesses with identical profit can trade for double the price. The difference is almost always recurring revenue and how little the owner has to touch it.

How to use these playbooks

Each industry has three pages, and they answer the three questions every buyer asks in order:

The playbook (example: HVAC), how the business actually works, what to diligence, the licensing traps, and how a typical SBA deal is structured.

Owner salary, what owners really take home once you separate a market-rate salary from SDE and net cash flow. This is the most heavily sourced page on the site.

Cost to buy, the price range, the multiple, the down payment, and a fully worked SBA example you can copy.

Bring your numbers to the valuation calculator, pressure-test the financing in the SBA loan guide, and if you are new to acquisitions, start with how to buy a business.

The multiple is a starting point, not a price

Every real deal moves off the median for a reason, customer concentration, owner dependence, contract quality, equipment age. The playbooks tell you which levers move the number in each industry.

How to buy a business, by industry

2026 SDE multiples at a glance

25 buyer playbooks

HVAC

Plumbing

Laundromat

Car wash

Landscaping

Accounting firm

Self-storage

Dental practice

Insurance agency

Junk removal

Pharmacy

Funeral home

Home care

Trucking

Construction

Electrical

Cleaning

Pest control

Auto repair

Med spa

Pool service

E-commerce

Childcare

Gym & fitness

Restaurant

How to use these playbooks

The multiple is a starting point, not a price