Vancouver, BC
$65,000
Vancouver, BC
$65,000
Dallas, TX
$65,000
Danbury, CT
$325,000
Florida
$12,500,000
Dallas, TX
$180,000
Great Neck, NY
$395,000
Kansas
$180,000
San Diego, CA
$35,000
Waldo County, ME
$1,750,000
Westchester, NY
$395,000
Montana
$10,650,000
Arizona
$150,000
Tampa, FL
$54,900
Louisiana
$250,000
New Jersey
$350,000
Nassau County, NY
$650,000
Peter Gregory
First Choice Business Brokers
Serving Westchester County, NY
First Choice Business Brokers, Westchester NY FCBB Westchester is In our 4th Year Serving NY, NJ, CT We offer “Concierge-Level”, High-Touch Service Nationwide Representation working with a network 70 other FCBB brokers and 200 agents Typical: 5-6 Quality Listings per Agent to maintain Personalized Service to highly vetted sellers
Albuquerque, NM
$199,500
Frederick County, MD
$399,900
Kansas City, KS
$204,990
Baton Rouge, LA
$196,990
New York County, NY
$200,000
Duluth, GA
$725,000
West Jordan, UT
$70,000
Nassau County, NY
$500,000
Florida
$750,000
Fairfax, VA
$250,000
Palm Beach, FL
$825,000
Maricopa County, AZ
$345,000
Florida
$25,000
California
$350,000
Vancouver, WA
$295,000
Maricopa County, AZ
$345,000
Lake County, FL
$795,000
REAL ESTATE INCLUDED
Kentucky
$2,710,000
Savannah, GA
$90,000
Nashville, TN
$94,000
Ridgewood, NJ
$100,000
Southwestern Ontario, ON
$499,000
Henderson, NV
$99,000
Overland Park, KS
$145,500
Alabama
$5,900,000
Duluth, GA
$70,000
Miami, FL
$35,000,000
$699,999
Jon Taylor
Stanton Park Capital
Serving Norfolk County, MA
Suffolk County, NY
$1,000,000
Weston, FL
$270,000
REAL ESTATE INCLUDED
Fairfield County, CT
$1,650,000
Weld County, CO
$100,000
Spotsylvania County, VA
$3,520,000
Douglas County, NE
$15,000
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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