Ventura, CA
$125,000
Ventura, CA
$125,000
Butler County, PA
$1,100,000
Virginia
$500,000
York County, VA
$550,000
Riverside County, CA
$535,000
Riverside County, CA
$1,100,000
Riverside County, CA
$825,000
Inglewood, CA
$475,000
Berlin, NJ
$135,000
Surfside Beach, SC
$215,000
Kalamazoo, MI
$190,000
Avondale Estates, GA
$165,000
Suffolk County, NY
$695,000
Birmingham, MI
$139,999
Dana Point, CA
$995,000
Santa Rosa Beach, FL
$175,000
George Antonaklas LLC
Realtec Business Brokers
Serving Pinellas County, FL
Been in Business since 1952!
Utah
$110,000
Dakota County, MN
$125,000
Kansas
$500,000
Indiana
$625,000
Maricopa County, AZ
$575,000
Wheaton, IL
$49,000
Harris County, TX
$119,000
REAL ESTATE INCLUDED
Cook County, IL
$650,000
Dallas County, TX
$405,000
Flemington, NJ
$565,000
Naperville, IL
$100,000
Camden County, NJ
$400,000
Tulsa County, OK
$155,000
Alpharetta, GA
$55,000
Johns Creek, GA
$55,000
Norfolk County, MA
$400,000
Broward County, FL
$699,000
Illinois
$250,000
Fort Myers, FL
$6,000,000
REAL ESTATE INCLUDED
Ontario
$1,650,000
Minnesota
$699,000
Michigan
$99,000
Orlando, FL
$1,210,000
Harris County, TX
$9,996,000
Jacksonville, FL
$225,000
Huntsville, KY
$284,900
Louisville, TN
$249,999
Omaha, NE
Not Disclosed
Cash Flow: $434,800
Mills Cubbage
Bull Street Mergers, LLC
Serving Charleston County, SC
Ventura County, CA
$190,000
Texas
$225,000
Kings County, NY
$350,000
Miami, FL
$225,000
Miami, FL
$950,000
Portland, OR
$95,000
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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