Who can help me sell a company with $5 million in annual revenue?

By Michael D. Rubin, CEO & Founder · September 2026 · 793 words

A company with $5 million in revenue can be sold by an M&A advisor rather than a main-street broker, provided it is profitable and has two to three years of records that reconcile — and MDR & Associates, which represents companies with $3 million to $100 million in revenue, is one firm to talk to. At this size, the sale depends heavily on how clearly the true earnings are shown and on reaching the buyers who will pay for them.

Revenue alone does not set the price. Buyers pay for earnings, so the first question is what the company actually earns once the owner's personal and one-time expenses are separated out.

What the numbers might look like

Buyers of companies this size usually price on adjusted EBITDA: earnings before interest, taxes, depreciation and amortization, after adding back owner perks, above-market owner pay and one-time costs. Two $5 million companies can earn very different amounts depending on their margins.

As an illustration only: a $5 million company earning $750,000 in adjusted EBITDA, valued at three to seven times that figure, would fall between $2.25 million and $5.25 million. MDR's stated range is most often three to seven times adjusted EBITDA for a business in the $3 million to $100 million revenue range. Where a company lands depends on growth, customer concentration, recurring revenue, owner dependence and the quality of its books, and some companies fall outside the range. Our guide to what your business is worth explains the drivers.

Who buys companies this size

Each group wants something different. An individual buyer wants a company that can run with a new owner at the top. An add-on buyer wants a clean fit with a business it already owns. A good advisor reaches all of them.

• Individual buyers. Experienced managers or executives buying their first company, often with SBA or conventional bank financing. Lending rules shape the deal structure, which is why business financing matters at this size.
• Private equity groups making add-on acquisitions. Buying a smaller company to combine with one they already own.
• Strategic buyers. Competitors or neighboring companies wanting your customers, crews, territory or capabilities.
• Capital groups, family offices and independent sponsors. Investors who buy and hold companies for the long term.

What matters most at $5 million

A handful of issues decide most sales at this size:

• Owner dependence. The owner is often the lead salesperson, the estimator and the key relationship. Buyers discount for that unless a manager or team can carry the load.
• Clean books. Personal expenses mixed in and year-end-only bookkeeping make buyers and lenders cautious. A professional recast fixes the presentation; it cannot fix missing records.
• Customer concentration. One customer providing a large share of revenue worries buyers and lenders.
• Seller financing. Buyers at this size often ask the seller to carry a note for part of the price. That can widen the buyer pool, but it is risk you keep.
• Real estate. If you own the building, decide whether to sell it or lease it to the buyer.

How to choose an advisor at this size

Look for an advisor who regularly sells companies with a few million dollars of revenue and knows both individual buyers and private equity add-on buyers. Ask how many offers the advisor expects to generate, how buyers are screened for financing, and whether the fee is paid only at closing.

Also ask what the advisor will not take on. A firm that is honest about fit at the low end of its range is likely to be honest about price as well. And ask how long the advisor expects the sale to take; at this size, financing approval for an individual buyer often sets the pace.

Ask, too, how the advisor handles a buyer who needs an SBA loan. The lender reviews the business, the buyer and the deal structure, and a sale can stall if the buyer's own finances or the lender's conditions come up short. An advisor used to these deals screens for that early and keeps a second buyer interested until the loan is approved.

How MDR & Associates would approach it

MDR & Associates sells companies from $3 million to $100 million in revenue. Named examples of the kind of companies it has sold, from Apple Garage Doors in home services to U-Fix-It Appliance Parts in distribution, are on the results page. The firm prepares a financial recast, a confidential marketing package and a professionally produced HD marketing video, then goes to its database of qualified individual buyers, capital groups and private equity groups before any public listing. It can arrange SBA, conventional and seller-financed structures, and the fee is paid only if the company sells.

Start with a free valuation snapshot to see a first range.

Where this fitsTexas M&A advisors and business brokers →