Chicago, IL
$3,000,000
Chicago, IL
$3,000,000
Illinois
$1,500,000
Greensboro, NC
$279,990
Cambridge, MA
$140,000
Knoxville, TN
$279,990
Boston, MA
$104,899
Lafayette, LA
$214,990
Saint Louis, MO
$249,900
Cincinnati, OH
$250,000
Tucson, AZ
$399,900
Denver, CO
$595,000
Oklahoma City, OK
$330,000
Birmingham, AL
$310,000
$500,000
Rocky Hill, CT
Houston, TX
$349,900
Zionsville, IN
$369,000
Jason Sanders
First Midwest Advisors
Serving Jackson County, MI
First Midwest Advisors, LLC (https://firstmidwestadvisors.com/) First Midwest Advisors utilizing 25 years of corporate experience to represent sellers and buyers of small to medium sizes business from a variety of industries. We assist business owners on various types of transactions through the Mergers and Acquisition process. First Midwest Advisors works with businesses looking to exit their business or seeking to expand with a strategic acquisition. We evaluate strategic and financial goals by taking the time to listen to our clients’ short- and long-term needs, and then we develop a comprehensive plan for an exit or acquisition strategy to achieve their goals.
Kalamazoo, MI
$385,000
Toledo, OH
$295,000
Fort Wayne, IN
$299,000
Charleston, WV
$349,900
Temple, TX
$395,000
Fairfield, CT
$399,900
Columbia, SC
$239,000
Chattanooga, TN
$175,000
$1,150,000
North Kansas City, MO
Boston, MA
$249,000
Houston, TX
$285,000
Carrollton, SC
$175,000
Pompano Beach, FL
$124,500
Catonsville, MD
$295,000
White House, TN
$525,000
Collierville, TN
$750,000
Lincoln, NE
$325,000
Ventura County, CA
$1,350,000
Silver Spring, MD
$289,900
$1,920,000
Saint Louis, MO
Utah
$650,000
Weber County, UT
Not Disclosed
Cash Flow: $334,228
Cook County, IL
Not Disclosed
Cash Flow: $334,225
Washington, DC
$1,200,000
Philadelphia, PA
$295,000
San Mateo County, CA
$400,000
South Dakota
$399,000
Philadelphia, PA
$1,250,000
Jessica Richer
Hannah Commercial Real Estate
Serving Albany County, NY
The Richer Team at Hanna Commercial Real Estate is located in the Greater Albany Region. The team includes seasoned commercial real estate professionals focusing all areas of commercial transactions for both buyers and sellers. We take great pride in our client centric, full-service representation across all commercial transactions.
San Diego County, CA
$2,270,000
Essex County, NJ
$2,500,000
$150,000
Longmont, CO
Ramsey, NJ
$330,000
Sparta, NJ
$405,000
Summit County, OH
$185,000
Nashville, TN
$619,000
Orange County, CA
$675,000
Houston, TX
$125,000
Tennessee
$1,750,000
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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