South Pittsburg, TN
$475,000
South Pittsburg, TN
$475,000
Charlotte, NC
$120,000
New Haven County, CT
$50,000
New Haven County, CT
$50,000
Nassau County, NY
$49,000
Mecklenburg County, NC
$575,000
Bridgeport, CT
$235,000
Brooklyn, NY
$169,000
Austin, TX
$300,000
Vinings, GA
$194,900
Encino, CA
$2,300,000
Lawrenceville, GA
$400,000
London, ON
$400,000
Charlotte Court House, VA
$139,900
Kansas City, MO
$145,000
Baltimore, MD
$149,000
Johnathan Choe
TransWorld
Serving Los Angeles County, CA
Louisville, KY
$149,500
Indianapolis, IN
$149,900
Columbus, OH
$279,900
Cleveland, OH
$284,900
Tulsa, OK
$289,900
Chicago Heights, IL
$274,900
Tennessee
Not Disclosed
EBITDA: $442,000
Seminole County, FL
$150,000
Georgia
$449,000
Middlesex County, MA
$540,000
Monmouth County, NJ
$925,000
North Carolina
$2,000,000
Allen, TX
$400,000
Chicago, IL
$460,000
Chambers County, TX
$40,200
New Jersey
$2,500,000
Fort Lauderdale, FL
$358,000
Shrewsbury, MO
$224,900
Murfreesboro, TN
$474,000
DeKalb County, GA
$65,400
Hartford, CT
$2,075,000
Union City, CA
$349,000
Sarasota, FL
$95,000
Bradenton, FL
$1,300,000
Myrtle Beach, SC
$2,500,000
Georgia
$3,200,000
Georgia
$995,000
Dickinson, ND
$195,000
Carrie Pederson
Transworld Business Advisors of Sioux Falls
Serving Lincoln County, SD
Transworld Business Advisors was founded in 1979 and has grown into one of the largest business brokerage firms in the United States. As a group of vested business brokers, Transworld works with business owners and entrepreneurs to buy a business, sell a business or explore franchise development.
Virginia
$685,000
Maryland
$4,500,000
Florida
Not Disclosed
EBITDA: $1,764,000
Philadelphia, PA
$165,000
Phoenix, AZ
$119,000
Pompano Beach, FL
$140,000
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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