Passaic County, NJ
$750,000
Passaic County, NJ
$750,000
Park City, UT
$106,000
North Miami Beach, FL
$34,500
Aurora, CO
$75,000
Lee County, FL
$278,500
Suffolk County, NY
$250,000
Bergen County, NJ
$499,000
Nassau County, NY
$717,000
$3,950,000
Austin, TX
$386,400
Phoenix, AZ
$89,000
Greater Toronto Area, ON
$440,000
West Palm Beach, FL
$71,100
Ventura County, CA
$67,200
Miami-Dade County, FL
$300,000
Orange County, CA
$8,000,000
Robert Hirsch
Exit Hero
Serving Pitkin County, CO
Guilford, CT
$575,000
Boston, MA
$135,000
Lantana, FL
$255,000
Dallas County, TX
$450,000
San Diego County, CA
$399,000
Lantana, FL
$500,000
Long Beach, CA
$100,000
Troy, IL
$35,000
Surrey, BC
$108,000
Suffolk County, NY
$190,000
Washington, UT
$1,500,000
West Bend, WI
$70,000
Jenks, OK
$69,000
Columbus, OH
$12,000
Destin, FL
$265,000
Indianapolis, IN
$40,000
Whitestown, IN
$15,000
Virginia
$165,000
Gilbert, AZ
$900,000
Denver, TN
$100,000
Houston, TX
$210,000
Stamford, CT
$375,000
Medley, FL
$1,296,000
Not Disclosed
EBITDA: $3,199,000
Williamson County, TN
$625,000
REAL ESTATE INCLUDED
Capitol Heights, MD
$3,500,000
Palm Beach County, FL
$650,000
Apopka, FL
$514,017
Joseph Gusmeri
Murphy Business Brokers
Serving Harris County, TX
Murphy Business & Financial Corporation LLC was founded in 1994 by Roger J. Murphy, a pioneer of the business brokerage industry. Starting with a single business brokerage firm in Clearwater, FL, Murphy Business quickly expanded into a nationwide network of professional business brokers. With Roger’s vision, Murphy Business became one of the largest, most trusted, and most successful business brokerage firms in North America. Now, the leadership of CEO Veronica Cardinale Ellinger, Murphy Business continues to lead the field among North American business brokerage firms. We have offices across the United States and Canada, offering a range of business brokerage, business valuation, and business consultation services. As one of the most trusted business brokerage firms in North America, we put our experience and our connections to work on behalf of our clients. Whether you’re looking to sell a business, buy a business, or boost the value of your company, you can rely me as your trusted local Murphy broker.
Massachusetts
$2,600,000
Suffolk County, NY
$269,000
Springfield, IL
$299,500
Denver, CO
$1,800,000
Monmouth County, NJ
$249,999
Gogebic County, MI
$5,504,000
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.
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