Richmond, VA
$90,000
Richmond, VA
$90,000
REAL ESTATE INCLUDED
Missouri
$1,750,000
Washington, DC
$199,000
Miami, FL
$199,000
Las Vegas, NV
$228,000
Miami, FL
$99,000
Bronx, NY
$330,000
St. Charles County, MO
$649,900
Fort Myers, FL
$345,000
Virginia
$749,000
Gloucester County, NJ
$675,000
New York County, NY
$330,000
Alameda County, CA
$800,000
Phoenix, AZ
$450,000
New Jersey
$500,000
REAL ESTATE INCLUDED
Bronx, NY
$1,950,000
Randy Hendershot, CBB
Evolution Advisors
Serving Placer County, CA
Evolution provides a full range of professional services to anyone considering Buying or Selling a Business, including Valuation, Exit Strategies, Financing or anything else related to the sale or purchase of a business. Evolutions approach is unique and proven to work.
Suffolk County, NY
$500,000
Denver, CO
$950,000
Keasbey, NJ
$349,000
Not Disclosed
Cash Flow: $5,410,000
Naugatuck, CT
$235,000
Montgomery County, MD
$275,000
$40,000
REAL ESTATE INCLUDED
Naugatuck, CT
$770,000
Saint Louis, MO
$550,000
Greater Hamilton Area, ON
$550,000
Allegheny County, PA
$135,000
Philadelphia, PA
$1,020,023
Michigan
$375,000
Maricopa County, AZ
$348,000
Berks County, PA
$300,000
Oneida County, NY
$650,000
Salt Lake County, UT
$319,200
Harris County, TX
$50,000
REAL ESTATE INCLUDED
Georgia
$19,500,000
Georgia
$27,000,000
Santa Rosa, CA
$525,000
Winter Springs, FL
$143,000
Greenville, WI
$119,900
Middlesex County, MA
$270,000
Florida
$450,000
Not Disclosed
EBITDA: $1,465,000
Orange County, CA
$175,000
REAL ESTATE INCLUDED
Illinois
$195,000
Tom Simjian
Keller Williams Costal
Serving Hartford County, CT
Keller Williams Realty
Virginia
$485,000
Georgia
$8,000,000
Sedgwick County, KS
$275,000
REAL ESTATE INCLUDED
North Dakota
$4,124,000
Ozone Park, NY
$750,000
Muskegon County, MI
$525,000
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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