Lancaster County, PA
$225,000
Lancaster County, PA
$225,000
Cleveland, OH
$250,000
St Pete, FL
$50,000
Wisconsin
$560,000
Largo, FL
$80,000
Bexar County, TX
$116,400
Brevard County, FL
$106,860
Bexar County, TX
$134,400
Los Angeles County, CA
$189,000
Miami, FL
$700,000
Polk County, IA
$60,000
Miami-Dade County, FL
$1,520,000
Orange County, FL
$99,999
Minnesota
$475,000
Union County, NC
$280,000
Kings County, NY
$99,000
Robert Hirsch
Exit Hero
Serving Pitkin County, CO
Gregg County, TX
Not Disclosed
Cash Flow: $236,215
Tampa, FL
$162,000
Scottsdale, AZ
$250,000
Bordentown, NJ
$140,000
Tucson, AZ
$659,000
Philadelphia, PA
$245,000
St. Louis County, MO
$148,500
Camas, WA
$375,000
Monterey County, CA
$295,000
Myrtle Beach, SC
$750,000
REAL ESTATE INCLUDED
Buffalo, NY
$6,500,000
Anchorage, AK
$250,000
New Hanover County, NC
$400,000
Pinellas County, FL
$108,000
Duval County, FL
$200,000
Not Disclosed
Cash Flow: $2,000,000
Maricopa County, AZ
$195,000
Union City, GA
$379,000
Wilmington, MA
$700,000
Memphis, TN
$1,900,000
Hillsborough County, FL
$150,000
Fort Lauderdale, FL
$123,900
Geauga County, OH
$550,000
Not Disclosed
EBITDA: $815,000
Tennessee
Not Disclosed
EBITDA: $794,000
Minnesota
$690,000
Indiana
Not Disclosed
Cash Flow: $104,291
Florida
$875,000
Ron Matheson
WebsiteClosers.com
Serving Hillsborough County, FL
Please visit our website to learn more about us, watch our videos, review our articles, and see the portfolio of businesses we have recently sold.
Montgomery County, MD
$950,000
New York
$1,200,000
Not Disclosed
EBITDA: $3,200,000
Lee County, FL
$1,900,000
Cobb County, GA
$1,950,000
Scottsdale, AZ
$390,000
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.
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