Sarasota County, FL
$3,250,000
Sarasota County, FL
$3,250,000
Queens, NY
$150,000
Kissimmee, FL
$174,947
Massachusetts
$1,400,000
Abilene, TX
$75,000
Mount Pleasant, SC
$374,969
Suwanee, GA
$43,000
Boston, MA
$600,000
Memphis, TN
$249,000
Houston, TX
$359,000
Lehigh Valley, PA
$965,000
Sacramento, CA
$340,000
Detroit, MI
$249,000
$150,000
Westminster, CO
Philadelphia, PA
$259,900
Hawaii
$275,000
John Weisler
JW Michaels Realty Services, LLC
Serving Clark County, NV
JW Michaels offers a variety of professional services for both business buyer and services Business analysis, marketability and financial consulting to maximize your profits. A consultive approach with both Buyer and Seller from valuation through transfer of ownership, always creating a win-win outcome.
Spokane Valley, WA
$200,000
Washington, DC
$315,000
Nolensville, TN
$75,000
Columbia County, GA
$318,000
Harris County, TX
$73,200
Maricopa County, AZ
$88,800
$75,000
Tampa, FL
$210,000
$450,000
Camarillo, CA
Hewitt, TX
$125,000
Flemington, NJ
$145,000
Atlanta, GA
$250,000
Riverside, CA
$250,000
Tallahassee, FL
$95,000
Jackson, MS
$90,000
REAL ESTATE INCLUDED
Florida
$1,723,000
Oklahoma City, OK
$100,000
Corpus Christi, TX
$95,000
Worcester, MA
$99,000
$695,000
Essex County, MA
Memphis, TN
$259,900
Erath County, TX
$1,845,000
Wood County, WI
$1,245,000
Volusia County, FL
$495,000
Des Moines, IA
$399,900
Brooklyn, NY
$145,000
Rialto, CA
$1,600,000
Arkansas
$199,000
Tyler Applegate
Transworld Business Advisors
Serving Orange County, CA
When an entrepreneur intends to divest their business, they require the expertise of a business broker who can effectively identify and thoroughly assess prospective buyers. Similarly, buyers depend on brokers to streamline the process of evaluating available businesses and franchises. In this regard, Transworld Business Advisors emerges as the optimal solution for both scenarios. Transworld Business Advisors for the last 40 years specializes in three fundamental areas: business brokerage, franchise consulting, and franchise development.
Fairfax, VA
$299,900
Houston, TX
$150,000
$185,000
Houston, LA
$140,000
Nassau County, NY
$1,100,000
Wayne County, MI
$164,900
Pittsburgh, PA
$490,000
Rockland County, NY
$200,000
Philadelphia, PA
$121,900
Middletown, NJ
$299,000
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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