Santa Clara County, CA
$425,000
Santa Clara County, CA
$425,000
Palm Beach Gardens, FL
$279,000
Monmouth County, NJ
$795,000
New Haven, CT
$55,000
Washtenaw County, MI
$275,000
Apache Junction, AZ
$30,000
Boise, ID
$65,000
Michigan
$275,000
Manchester, MA
$479,000
New Orleans, CT
$140,000
Denver, FL
$199,900
REAL ESTATE INCLUDED
Indiana
$1,595,000
REAL ESTATE INCLUDED
Silt, CO
$3,200,000
REAL ESTATE INCLUDED
St Lucie County, FL
$650,000
Lghthse Point, FL
$309,000
Louisville, KY
$700,000
Todd Murphy
Murphy Business Sales of KC
Serving Johnson County, KS
Founded in 1994, Murphy Business Sales has become one of the largest and most successful business brokerage firms in North America, with offices conveniently located throughout the United States and Canada.
Galveston, TX
$300,000
Greensboro, NC
$118,950
Charleston, SC
$228,900
Louisville, KY
$206,900
North Carolina
$135,000
Cedar Park, TX
$29,295
Springfield, VA
$280,000
Amarillo, TX
$185,000
Suffolk County, NY
$35,000
Colorado
$499,000
Norfolk County, MA
$85,000
Tampa, FL
$476,000
Miami, FL
$69,000
South Haven, MI
$154,900
Salinas, CA
$1,200,000
Englewood, CO
$420,000
Tampa, FL
$49,392
Orlando, FL
$575,000
Pinellas Park, FL
$1,500,000
Crenshaw, MS
$800,000
Brooklyn, NY
$100,000
REAL ESTATE INCLUDED
Oneida County, NY
$750,000
Bolivar, MS
$2,760,000
Dallas County, TX
$300,000
New York County, NY
$850,000
Washington, MS
$2,400,000
Los Angeles County, CA
$315,000
Marshall County, IN
$160,000
Michael Sipe
CrossPointe Capital
Serving Deschutes County, OR
Colorado
$3,850,000
Athens, GA
$525,000
Shellmound, MS
$150,000
Orange County, CA
$1,490,000
Orange County, FL
$1,200,000
New York County, NY
$650,000
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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