Memphis, TN
$737,000
Memphis, TN
$737,000
Nashville, TX
$619,000
Norfolk County, MA
$780,000
REAL ESTATE INCLUDED
Queens, NY
$3,999,999
Burnet County, TX
$345,000
Santa Clara, CA
$6,695,000
London
$10,300,000
Tokyo
$2,555,000
Surprise, AZ
$175,000
Wisconsin
$2,125,000
Worcester County, MA
$245,000
Boca Raton, FL
$332,496
Chicago, IL
$375,000
REAL ESTATE INCLUDED
Kansas City, MO
$1,150,000
Maui County, HI
$310,000
Kauai County, HI
$800,000
Jock Purtle
Business Exits Inc.
Serving Los Angeles County, CA
Saint Augustine, FL
$23,280
Kentucky
$88,000
Kentucky
$80,000
Kentucky
$66,000
Mississippi
$93,000
South Carolina
$1,200,000
Georgia
$1,200,000
Keller, TX
$45,000
Not Disclosed
Cash Flow: $610,000
Tulsa County, OK
$870,000
Kentucky
$98,000
Ohio
$114,000
Ohio
$98,000
Kansas
$136,000
Omaha, NE
$350,000
Charleston, WV
$150,000
Not Disclosed
EBITDA: $259,000
Edgewater, FL
$499,000
Saint Louis, MO
$225,000
Orlando, FL
$57,600
St Lucie County, FL
$130,000
Springfield, MO
$525,000
Jackson County, MO
$3,600,000
Austin, TX
$6,990,000
Fort Lauderdale, FL
$120,000
Elmhurst, IL
$1,100,000
Los Angeles, CA
$179,000
REAL ESTATE INCLUDED
Leesburg, FL
$2,700,000
Robert Ricci
My Realty Group
Serving Miami-Dade County, FL
Connecting You with Your Perfect Business Opportunity – Expert Guidance, Trusted Advice, Successful
Charlotte, NC
$149,600
Newport Beach, CA
$450,000
North Carolina
Not Disclosed
Cash Flow: $648,685
Not Disclosed
EBITDA: $212,000
Not Disclosed
EBITDA: $687,000
Florida
$1,300,000
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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