Dauphin County, PA
$74,500
Dauphin County, PA
$74,500
Wayne County, MI
$315,000
Putnam County, NY
$450,000
Wayne County, MI
$315,000
Onslow County, NC
$89,000
Irving, TX
$750,000
San Diego County, CA
$79,000
Salt Lake City, UT
$319,000
Virginia
$259,000
Michigan
Not Disclosed
Cash Flow: $651,482
Not Disclosed
EBITDA: $1,393,875
Texas
$2,500,000
Cleveland, OH
$94,000
Coral Gables, FL
$990,000
San Antonio, TX
$200,000
Pennsylvania
$575,000
Mike Miller
IBEX
Serving Travis County, TX
Myrtle Beach, SC
$89,000
Belgium
$3,600,000
Denver County, CO
$2,500,000
Texas
$100,000
Salt Lake City, UT
$500,000
Nassau County, NY
$2,100,000
Martin County, FL
$3,500,000
Atlanta, GA
$110,000
Pennsylvania
$1,200,000
Tucson, AZ
$149,000
REAL ESTATE INCLUDED
Tampa, FL
$7,250,000
Montana
$200,000
New Orleans, PA
$111,400
Ontario
$450,000
Astoria, NY
$175,000
Atlanta, GA
$1,200,000
Roswell, GA
$450,000
Shelby County, TN
Not Disclosed
Cash Flow: $700,000
Pinellas County, FL
$30,000
Marietta, GA
$899,000
San Diego County, CA
$875,000
Camden County, NJ
$90,000
Santa Clara County, CA
$879,000
Florida
$1,250,000
Jersey City, NJ
$2,300,000
Orange County, CA
$325,000
Boston, MA
$275,000
Huntsville, AL
$295,000
Ron Them
BHHS Commercial Division
Serving Allegheny County, PA
Birmingham, AL
$474,900
New Haven, CT
$295,000
New York, NY
$949,000
Montgomery County, PA
$385,000
North Hollywood, CA
$195,000
California
Not Disclosed
Cash Flow: $489,000
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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