Contra Costa County, CA
$99,000
Contra Costa County, CA
$99,000
Madison Heights, MI
$120,000
Bridgeport, CT
$210,000
Bozeman, MT
$125,000
Milton, ON
$312,000
Nottingham, NH
$120,000
San Diego County, CA
$199,000
Biddeford, ME
$70,000
Cumberland County, PA
$399,000
Maricopa County, AZ
$799,000
Los Angeles County, CA
$280,000
Clark County, NV
$425,000
Houston, TX
$225,000
New Jersey
$775,000
Miami-Dade County, FL
$853,000
Palm Springs, CA
$575,000
Patrick McAdams
Murphy Business & Financial Services LLC
Serving Waukesha County, WI
Murphy Business is one of the largest and most successful business brokerage firms in the country with business brokers conveniently located throughout the United States and Canada. The Milwaukee – Waukesha (WI) office provides beneficial connections in Milwaukee and surrounding areas. Choosing to partner with a national business broker provides an advantageous reach of over one hundred offices that have affiliations with National and International Business Brokerage and Merger & Acquisition associations.
Collin County, TX
$130,000
Sacramento, CA
$995,000
Tampa, FL
$295,000
$2,200,000
Benton County, AR
$199,900
Charleston, SC
$3,300,000
REAL ESTATE INCLUDED
Arlington, TX
$2,150,000
Dallas County, TX
$759,000
Houston, TX
$150,000
REAL ESTATE INCLUDED
Dallas County, TX
$1,000,000
Springfield, OH
$60,000
Enon, OH
$33,000
REAL ESTATE INCLUDED
Erie, PA
$1,600,000
Nashville, TN
$950,000
Vero Beach, FL
$317,108
Bergen County, NJ
$390,000
Fresno, CA
$779,900
Bend, OR
$525,000
Las Vegas, NV
$65,000
East Syracuse, NY
$975,000
Port Saint Lucie, FL
$61,440
Orlando, FL
$160,000
Long Beach, CA
$80,000
Queens, NY
$395,000
Newport County, RI
$400,000
Brooklyn, NY
$275,000
Suffolk County, NY
$299,999
Harris County, TX
$1,100,000
Donn Meyerhoeffer
Cottonwood Commercial
Serving Harrisonburg County, VA
Cottonwood Commercial stands alone as western Virginia's largest and most comprehensive commercial real estate resource. We have grown to become the market leader because we have remained focused on client-centered commercial and investment real estate services. Our client's success has always been our top priority, and we continue to build value for our customers by approaching our work with integrity, knowledge, and insight. In addition to normally expected Commercial Real Estate services, we also offer Commercial Property Management, On-line Auctions, and Business Brokerage for our customers. We know that we cannot be successful unless our clients are also successful. Our goal is to build value for our customers by approaching our work with integrity, knowledge and original ideas. The diverse set of backgrounds, previous work experience, areas of focus and perspectives from the staff of realtors and brokers associated with Cottonwood Commercial enable us to provide commercial real estate services across the full spectrum of needs facing our clients. Cottonwood Commercial is involved in the majority of the commercial real estate and business transactions within both the Harrisonburg / Rockingham County and Staunton / Waynesboro / Augusta County multiple listing services. Currently, we are the largest commercial Real Estate firm between Roanoke and Winchester, serving clients in transactions throughout Virginia and the Mid-Atlantic.
Ocean County, NJ
$145,000
Indianapolis, IN
$3,500,000
Chicago, LA
$295,000
Dallas, TX
$329,890
Brunswick, OH
$299,000
San Diego, CA
$875,000
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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