North Dakota
$1,999,000
North Dakota
$1,999,000
Daytona Beach, FL
$800,000
San Diego, CA
$1,750,000
Jackson County, GA
$600,000
Dix Hills, NY
$179,000
Canton, MI
$300,000
Prince George's County, MD
$300,000
Missouri
$1,190,000
Brown County, WI
$500,000
REAL ESTATE INCLUDED
Worcester County, MA
$1,000,000
Pittsburgh, UT
$250,999
St Lucie County, FL
$399,999
Polk County, IA
$350,000
REAL ESTATE INCLUDED
Providence County, RI
$600,000
Cuyahoga County, OH
$149,000
Rockland County, NY
$350,000
Eddy A. Dingman
National Acquisitions & Investment Group LLC
Serving Cook County, IL
National Acquisitions & Investment Group LLC is a middle market M&A Firm that specializes in the selling & buying of Specialty Businesses & Properties. We work with investors in building portfolios and the selling of portfolios or certain businesses & properties for individual sellers & buyers.
Columbus, OH
$129,000
Colorado
$900,000
Jackson, MS
$550,000
Fairfield County, CT
$325,000
Pinellas County, FL
$52,500
Indianapolis, IN
$75,000
Maryland
$750,000
Cincinnati, OH
$399,899
Brooksville, FL
$625,000
Green Bay, WI
$1,100,000
Eugene, OR
$599,000
Orlando, FL
$333,000
Fayetteville, OK
$213,900
Saint Louis, MO
$499,000
Woodbridge, VA
$350,000
Brooklyn, NY
$1,900,000
Boise, ID
$200,000
Memphis, NC
$160,000
Charleston County, SC
$400,000
Hamilton, ON
$650,000
Louisiana
$1,175,000
Denver, CO
$449,000
Saint Petersburg, NV
$204,999
Utah
$1,300,000
Dfw, TX
$1,600,000
Dallas, TX
$175,000
Bristol County, MA
$170,000
Bristol County, MA
$450,000
Adam Seidel
American Property Group
Serving Sarasota County, FL
Established in 1987
Salt Lake County, UT
$1,300,000
Missouri
$640,000
Pacific, MO
$975,000
Suffolk County, NY
$99,000
Newport, PA
$159,000
Harrisburg, PA
$159,000
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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