Houston, TX
$3,500,000
Houston, TX
$3,500,000
Los Angeles, CA
$15,000,000
Not Disclosed
Delaware County, PA
Not Disclosed
EBITDA: $1,200,000
New Jersey
$18,000,000
Boca Raton, FL
Not Disclosed
Orange County, FL
$340,000
St. Louis County, MO
$3,300,000
Kansas
Not Disclosed
EBITDA: $1,168,669
New Jersey
$3,000,000
New York, NY
$10,000,000
$1,600,000
Rancho Mirage, CA
$300,000
$6,500,000
Addison, TX
Indiana
$900,000
Saint Louis, MO
$425,000
Jon Holbert
CBI Team
Serving Benton County, AR
CBI has been the trusted partner to Main Street and Lower Middle Market Business Owners since 1994. With nearly 800 successful, confidential, business sales, CBI is the advisor you can trust to earn more cash at closing. Regardless of the business value, the CBI TEAM respects all business owners and provides professional, confidential business sale consultation.
San Jose, CA
Not Disclosed
EBITDA: $5,000,000
Italy
$231,750
Louisiana
Not Disclosed
EBITDA: $149,022
Not Disclosed
EBITDA: $621,000
Florida
$1,100,000
Dallas, TX
$150,000
Alameda County, CA
Not Disclosed
EBITDA: $200,000
Ireland
$1,377,000
$1,500,000
Minnesota
Ohio
Not Disclosed
EBITDA: $1,235,000
Maricopa County, AZ
$645,000
California
$300,000
Auburn, AL
$990,000
Saint Louis, MO
$695,000
Massachusetts
$5,995,000
Not Disclosed
EBITDA: $344,006
Sacramento County, CA
$500,000
Sacramento County, CA
$500,000
Charlotte County, FL
$200,000
$690,000
Gambrills, MD
Texas
Not Disclosed
EBITDA: $1,102,000
Mesa, AZ
$7,495,000
Sacramento, CA
$7,140,000
Arizona
$1,500,000
Alameda County, CA
Not Disclosed
Cash Flow: $10,000
Santa Clara, CA
$6,695,000
London
$930,000
$550,000
Jonathan Molayem
Acquivest Business Brokers & Exit Planners
Serving Orange County, FL
M&A Advisory Services provider to Businesses with Revenue $1M - $100M
Oregon
$490,000
Houston, TX
$650,000
$2,950,000
Virginia Beach, VA
$99,900
New Haven County, CT
$1,270,000
New York, NY
Not Disclosed
Cash Flow: $643,772
Mercer County, NJ
$10,500,000
Melbourne, FL
$500,000
Greenville, SC
$299,999
Information technology and software service businesses listed and sold on BizBuySell include managed IT companies (managed service providers, or MSPs), cyber security firms, software platform consultants, marketing services businesses, and related firms. These businesses offer personalized technology services that cater primarily to businesses, making them more stable and recession resistant than typical consumer focused businesses.
If you are looking to buy or sell an IT or software services company, it’s important to understand how these businesses are valued in the business for sale market. To provide some context, we have aggregated IT and software service business for sale listing data below and surfaced important financial and valuation metrics.
Market Overview
Number of Businesses Analyzed |
124 |
Median Asking Price |
$1,049,250 |
Median Reported Revenue |
$809,418 |
Median Reported Earnings |
$290,604 |
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. |
IT and Software Services Business Valuation Multiples
Range |
Revenue |
Earnings (SDE) |
Lower Quartile |
0.76 |
2.76 |
Median |
1.24 |
3.46 |
Upper Quartile |
2.14 |
5.04 |
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. |
Read the Report:
IT and Software Services Business Valuation Multiples & Financial Benchmarks
FAQs
How much does it cost to buy an IT or software services company?
Prices vary depending on the size of the business listed, but the median asking price for an established IT or software services business is $1,049,250.
How much do IT and software services business owners earn?
IT and software services business owners report median annual revenue of $809,418 and annual owner earnings of $290,604. These figures are based on businesses that have listed their annual revenue and seller's discretionary earnings.
How do I value an IT or software services business?
Valuing an IT or software services business involves considering several factors, including annual revenue, profit, growth (or decline) trends, and competition in the app market. Brokers, business owners, and business buyers will typically rely on valuation multiples to gauge business value relative to similar businesses in the market. Revenue multiples among IT and software service businesses listed for sale in the U.S. range from 0.76 to 2.14, with the median at 1.24. Earnings multiples range from 2.76 to 5.04, with the median at 3.46. These values suggest the average IT or software service business listed for sale may trade for around 1.24 times its annual revenue, and 3.46 times its annual owner’s earnings.
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