Hot

opportunity score

Phoenix, AZ Market Report

Fastest-growing metro in the country with a white-hot SMB acquisition market.

5.1M

Metro Population

+3.1%

Annual Growth

890

Listed Businesses

$425K

Median Asking Price

🏙️ Market Overview

5.1M metro

Population · +3.1%/yr growth

Top Industries:
• Construction & Development
• Technology
• Healthcare

📊 Acquisition Activity

890

businesses listed for sale

Avg. time on market: 3.5 months

Median asking price: $425K

Price range: $175K – $3.8M

2,400 active buyers

🏦 SBA Lending Snapshot — Phoenix

28%

7(a) Approval Rate

$545K

Avg. Loan Size

Top Lenders

Arizona Bank & Trust · BMO · JPMorgan Chase

SBA Performance: Excellent — construction and trades businesses get strong SBA support

📈 Business Valuation Multiples — Phoenix

Industry	SDE Multiple	EBITDA Multiple	Notes
Restaurant (FSR)	2.1x–2.9x	4.8x–6.3x	Fast growing; winter visitors boost seasonal revenue
HVAC / Plumbing	2.7x–3.5x	5.9x–7.4x	Desert climate drives year-round HVAC demand; summer premium
Dental	2.9x–3.7x	6.3x–7.9x	Rapid population growth; new patient acquisition strong
E-Commerce	1.8x–2.5x	4.0x–5.5x	Distribution hub for Southwest; growing logistics sector
Landscaping	2.0x–2.8x	5.1x–6.3x	Pool and desert landscaping in high demand; commercial growth
Professional Services	2.4x–3.1x	5.3x–6.5x	Retiree influx bringing wealth management 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 — Phoenix

🔨 Construction & Trades Very High

SDE 2.8x–3.6x SDE/EBITDA

Electrical, plumbing, and general contractors in high demand. Housing shortage keeps demand elevated. Businesses with strong crews and customer reviews command premium multiples.

🏠 Home Services High

SDE 2.5x–3.2x SDE/EBITDA

Pool service, home cleaning, and handyman services. Winter visitor economy adds demand. High-margin residential services companies most sought.

🏥 Healthcare Services Active

SDE 2.7x–3.4x SDE/EBITDA

Retiree-driven healthcare demand. Home health, hospice, and dental practices getting buyer interest. Banner Health expansion driving sector growth.

💼 Recent Notable Deals — Phoenix

$580K

SBA 7(a)

Electrical Contractor (Scottsdale)

3.1x SDE — licensed electricians included in sale · 2025

$320K

Conventional

Pool Service Company (Mesa)

2.8x SDE — 180 recurring residential accounts · 2025

$490K

SBA 7(a)

Medical Billing Company (Chandler)

3.0x SDE — healthcare RCM niche specialization · 2024

📈 Growth Signals

TSMC $65B semiconductor campus creating 6,000+ high-wage jobs
Population growth +3.1% — fastest of any major metro
Intel manufacturing expansion adding thousands of tech jobs
Winter tourism economy generating $12B annually

⚠️ Key Risks

Water scarcity limiting long-term suburban expansion
Housing affordability pressure from rapid price appreciation
Extreme summer heat limits outdoor work March–October

🎯 12-Month Acquisition Outlook — Phoenix

Hot

12-month: Phoenix acquisition market accelerates. Tech investment (TSMC, Intel) creates spillover demand for professional services. Trades businesses remain in short supply — buyer competition stays high.

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