Knoxville, OH
$384,900
Knoxville, OH
$384,900
Georgia
Cash Flow: $382,000
Tennessee
$515,000
Gta, ON
$495,000
Saint Louis, MO
$149,999
Benton County, AR
$340,000
Provo, MA
$150,000
Elgin, IL
$380,000
Marlboro, NJ
$450,000
Eugene, OR
$200,000
Aurora, CO
$149,900
Bucks County, PA
$40,000
California
$1,999,999
Columbus, OH
$1,500,000
Orange County, CA
$695,000
Raleigh, NC
$400,000
C. Hedges
Chelsis Financial
Serving Marion County, IN
Established in 1998, Chelsis Financial offers business owners a complimentary review to assess business value and to inform the decision to sell based on an independently validated asking price. All inquiries are highly confidential, leading to a quiet transfer of ownership. Confidentially connecting business owners with active merger & acquisition partners and motivated buyers is our business! - C. Ross Hedges, Principal
Memphis, TN
$394,900
San Antonio, TX
$686,950
Suffolk County, NY
$109,000
Chatham County, GA
$814,999
Iowa
$995,000
Brooklyn, NY
$600,000
Clearfield County, PA
$175,000
REAL ESTATE INCLUDED
Florida
$9,500,000
New Haven, CT
$148,950
Marietta, GA
$299,999
Bergen County, NJ
$600,000
Cleveland, NY
$268,900
Saint Louis, MO
$230,225
Washtenaw County, MI
$1,399,000
Shasta County, CA
$1,000,000
Monmouth County, NJ
$700,000
Saint Petersburg, FL
$299,990
Des Moines, RI
$299,990
Virginia Beach, VA
$275,000
Sandy Springs, GA
$400,000
Manchester, CT
$250,000
Bentonville, AR
$116,500
REAL ESTATE INCLUDED
Arkansas
$1,200,000
Santa Monica, CA
$249,000
Richmond, NC
$424,900
Houston, TX
$100,000
Milwaukee, WI
$39,500
Nashville, TN
$30,500
stuart rifkin
Rifkin Associates
Serving Albemarle County, VA
Rifkin Associates has been operating in central Virginia since 1992. Business brokerage, commercial real estate and consulting. We've bought and sold dozens of business and helped so many business owners along the way.
Sioux Falls, SD
$29,500
Rapid City, SD
$22,000
Lebanon, PA
$18,750
Broken Arrow, OK
$28,000
Kettering, OH
$35,000
Dublin, OH
$30,000
Acquisitions of service business are on the rise, and it’s easy to see why. Service businesses provide niche professional support to customers and cover a wide range of industries. The benefits of owning a service business include operational flexibility, high profitability, low overhead costs, minimal inventory and supplies, and the possibility of generating multiple revenue streams. One of the primary advantages of buying an existing service business is that it comes with established credibility in the market.
For those in the market to buy or sell a service business, it’s crucial to gain an understanding of how the market values these businesses, and what average financial performance looks like. To that end, we have aggregated listings data to surface current valuation multiples and typical financials of service businesses.
Market Overview
Number of Businesses Analyzed |
5,359 |
Median Asking Price |
$312,338 |
Median Reported Revenue |
$525,724 |
Median Reported Earnings |
$152,000 |
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. |
Service Business Valuation Multiples
Range |
Revenue |
Earnings (SDE) |
Lower Quartile |
0.43 |
1.50 |
Median |
0.72 |
2.43 |
Upper Quartile |
1.08 |
3.44 |
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. |
Read the Report:
Service Business Valuation Multiples & Financial Benchmarks
Popular Service Businesses
Some of the most popular categories include:
FAQs
How much does it cost to buy a service business?
Prices vary depending on sales volume and financial performance, but the median asking price for a service business in the U.S. is approximately $312,338.
How much do service business owners earn?
These businesses vary in sales volume, but service business owners report median annual sales of $525,724 and annual owner earnings of $152,000. These figures are based on businesses that have listed their annual revenue and seller's discretionary earnings.
How do I value a service business?
Valuing a service business involves considering several factors, including annual revenue, profit, owner earnings, growth (or decline) trends, and historical stability. 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 of service businesses range from 0.43 to 1.08, with the median at 0.72. Earnings multiples range from 1.50 to 3.44, with the median at 2.43. These values indicate that a typical service business may sell for around 0.72 times its annual revenue, and 2.43 times its annual owner’s earnings.
More for Business Buyers:
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