Hot

opportunity score

Houston, TX Market Report

Energy capital of the world with unmatched deal flow and SBA lending infrastructure.

7.5M

Metro Population

+2.1%

Annual Growth

1,240

Listed Businesses

$485K

Median Asking Price

🏙️ Market Overview

7.5M metro

Population · +2.1%/yr growth

Top Industries:
• Energy & Oilfield Services
• Healthcare
• Petrochemicals

📊 Acquisition Activity

1,240

businesses listed for sale

Avg. time on market: 4.2 months

Median asking price: $485K

Price range: $150K – $3.2M

3,400 active buyers

🏦 SBA Lending Snapshot — Houston

24%

7(a) Approval Rate

$612K

Avg. Loan Size

Top Lenders

Live Oak Bank · Frost Bank · Amegy Bank

SBA Performance: Strong — energy adjacents preferred

📈 Business Valuation Multiples — Houston

Industry	SDE Multiple	EBITDA Multiple	Notes
Restaurant (FSR)	2.4x–3.1x	5.2x–6.8x	High volume, low margin; location critical
HVAC / Plumbing	2.8x–3.6x	6.1x–7.5x	Recession-resilient; recurring revenue加分
Dental	3.2x–4.0x	6.8x–8.2x	Insurance-dependent; metro population growth drives demand
E-Commerce	2.0x–2.8x	4.5x–6.0x	Distribution hub; strong logistics infrastructure
Landscaping	2.2x–3.0x	5.5x–6.8x	Commercial contracts dominate; seasonal but stable
Professional Services	2.6x–3.4x	5.8x–7.0x	Energy sector spillover demand

SDE = Seller's Discretionary Earnings (cash flow to owner). EBITDA = Earnings Before Interest, Tax, Depreciation, Amortization. Multiples based on comparable transactions and market data.

🔍 Top Industries — Houston

⚡ Oil & Gas Services Very High

SDE 3.0x–4.2x SDE/EBITDA

180+ listed; buyer demand from PE and strategic acquirers. Sellers with contracts >12 months get premium pricing. Midstream and well services most sought.

🏥 Healthcare Services High

SDE 2.8x–3.5x SDE/EBITDA

Home health, medical billing, and clinic groups changing hands. Aging population and Medicare growth driving demand. SBA loans common.

🏗️ Commercial Construction Active

SDE 2.5x–3.2x SDE/EBITDA

Subdivision and commercial fit-out companies. Houston sprawl creates constant demand. Backlog of 6–18 months typical for established firms.

💼 Recent Notable Deals — Houston

$1.8M

SBA 7(a)

Petroleum Equipment Distributor

3.4x SDE — seller had $530K SDE · 2025

$620K

SBA 7(a)

Residential HVAC Company (Katy)

3.1x SDE — recurring maintenance contracts included · 2025

$1.1M

Conventional

Franchise Dental Practice (Sugar Land)

3.6x SDE — high patient insurance mix · 2024

📈 Growth Signals

Port of Houston expansion adding 50,000+ jobs by 2027
Energy transition investment creating new service markets
Texas Medical Center — world largest — drives healthcare M&A
Population influx: +120K new residents in 2025

⚠️ Key Risks

Oil price volatility directly impacts energy services sector
Hurricane exposure — property and business interruption risk
Rising property insurance costs affecting commercial real estate

🎯 12-Month Acquisition Outlook — Houston

Hot

12-month: Strong deal flow continues. Energy transition creates new acquisition targets. SBA lenders actively financing Houston deals. Prime time to buy — multiples still below 2021 peak.

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