Chicago, IL
$750,000
Chicago, IL
$750,000
Syracuse, NY
$500,000
Houston, TX
$540,000
Minnesota
$210,000
Shelby County, TN
$1,200,000
REAL ESTATE INCLUDED
Michigan
$3,100,000
Finland
$6,120,000
Rock Hill, SC
Not Disclosed
Cash Flow: $230,000
Forest Hills, NY
$88,000
Suffolk County, NY
$890,000
Oregon
$465,000
Kane County, IL
$2,995,000
Naperville, IL
$30,000
$85,000
Tarpon Springs, FL
Grand Rapids, MI
$400,000
Raleigh, NC
$574,495
Scot Cockroft
Sigma Mergers & Acquisitions LLC.
Serving Dallas County, TX
Sigma Mergers & Acquisitions is a Dallas business broker that represents manufacturing, service and distribution companies from other industries between 500k and 50 million. Our proprietary system for marketing and selling business, Sigma DealMap™, is unique to the industry, and it works! The proof is in the results - Sigma has consistently been a top-rated firm in the country. Check out our website at www.sigmamergers.com for seller testimonials and to contact us today. Scot Cockroft is a serial entrepreneur and business broker who helps business owners realize their full potential in selling their business. He is passionate about the process, having created and sold four of his own businesses to date, and helped hundreds of other businesses do the same. Scot is in the trenches day-to-day and is always looking for the next business to buy, grow, and of course sell! Scot is also working on his second book, The Definitive Guide to Profiting From Selling Your Business.
Houston, TX
$539,000
Franklin County, MO
$600,000
Harrisburg, PA
$119,000
Bexar County, TX
$116,400
Canton, MI
$45,000
REAL ESTATE INCLUDED
Lake City, FL
$599,000
East Moriches, NY
$1,200,000
Cherry Hill, NJ
$150,000
$1,200,000
Los Angeles County, CA
Murfreesboro, TN
$305,000
Toronto, ON
$115,000
$489,750
Louisville, KY
$199,899
Jackson County, MO
$80,000
Durham, NC
$599,999
Waterloo, ON
$60,000
Riverside County, CA
$350,000
Middlesex County, NJ
$130,000
Connecticut
$54,000
$130,000
Saint Louis, MO
San Diego County, CA
$54,000
Houston, TX
$54,000
Virginia
$54,000
Pasco County, FL
$249,000
Philadelphia, PA
$54,000
Texas
Not Disclosed
EBITDA: $704,845
Cherry Hill, NJ
$150,000
Philadelphia, PA
$150,000
Robert Hanson
R. Hanson Corporation
Serving Lake County, IL
Union County, NJ
$285,000
Michigan
$170,000
$74,900
Rolla, MO
Atlantic County, NJ
$700,000
Illinois
Not Disclosed
EBITDA: $1,800,000
Atlanta, GA
$99,500
Philadelphia, PA
$35,000
Albuquerque, NM
$339,900
Wyoming
Not Disclosed
Cash Flow: $345,000
Westchester County, NY
$115,000
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:
Set Up Alerts and Notifications
Business Buyer Learning Center
More for Business Sellers: