Ohio
Not Disclosed
EBITDA: $1,235,000
Ohio
Not Disclosed
EBITDA: $1,235,000

Maricopa County, AZ
$645,000

California
$300,000
Saint Louis, MO
$695,000
Massachusetts
$5,995,000
Sacramento County, CA
$500,000
Sacramento County, CA
$500,000
Charlotte County, FL
$200,000
Texas
Not Disclosed
EBITDA: $1,333,000
Mesa, AZ
$7,495,000
Sacramento, CA
$5,610,000
Alameda County, CA
Not Disclosed
Cash Flow: $10,000
Santa Clara, CA
$6,695,000
$250,000
Kitsap County, WA
London
$930,000
Oregon
$490,000
Alice Rubenfield
Fifth Avenue Brokerage
Serving New York County, NY
Fifth Avenue Brokerage specializes in the sale of family-owned businesses, ensuring smooth transitions for sellers while maximizing their return on investment. Based in New York, we work with a diverse range of businesses, from local tea shops and towing companies to dog groomers, tattoo parlors, and e-commerce brands. Our team understands the emotional and financial complexities involved in selling a family business. That’s why we provide expert valuation, strategic marketing, and a vast network of potential buyers to ensure a seamless transaction. Whether you're looking to retire, move on to new ventures, or simply want to capitalize on your hard work, we are committed to securing the best possible deal. At Fifth Avenue Brokerage, we take a personalized approach to each sale, guiding business owners through the entire process—from valuation and listing to negotiation and closing. We handle every detail with confidentiality and professionalism, ensuring a smooth transition for both sellers and buyers. If you’re considering selling your business, let us help you maximize its value and find the right buyer who will continue your legacy.
Houston, TX
$650,000
$2,950,000
Virginia Beach, VA
$99,900
New Haven County, CT
$1,270,000
Mercer County, NJ
$10,500,000
Melbourne, FL
$500,000
Greenville, SC
$299,999
Alameda County, CA
Not Disclosed
Cash Flow: $100,000
Colombia, Mexico, Brazil
$36,050,000
Velenje
$1,287,500
Montgomery County, MD
$2,150,000
Reeuwijk
$1,530,000
New Jersey
$2,500,000
Nevada
$25,000
West Palm Beach, FL
$10,000,000
California
Not Disclosed
EBITDA: $600,000
Phoenix, AZ
$1,750,000
Santa Cruz
$20,500,000
Contra Costa County, CA
Not Disclosed
Cash Flow: $438,000
Riyadh
$55,000,000
Illinois
$2,000,000
Alameda County, CA
Not Disclosed
Cash Flow: $1,000
South Carolina
$750,000
Charlotte, NC
$10,000
Alameda County, CA
Not Disclosed
Cash Flow: $155,000
Denver, CO
$29,000,000
California
$750,000
St. Louis County, MO
$1,300,000
David Kaufmann
Exit on the Bay
Serving Dorchester County, MD
Exit on the Bay Realty is a full service Real Estate brokerage firm
Alameda County, CA
Not Disclosed
Cash Flow: $975,496
Pleasanton, CA
Not Disclosed
Cash Flow: $400,322
$995,000
New York, NY
$2,100,000
Ireland
$1,330,000
Virginia Beach County, VA
Not Disclosed
Cash Flow: $168,000
Raleigh, NC
$1,500,000
Information technology and software service businesses listed and sold on BizBuySell include managed IT companies (managed service providers, or MSPs), cyber security firms, software platform consultants, marketing services businesses, and related firms. These businesses offer personalized technology services that cater primarily to businesses, making them more stable and recession resistant than typical consumer focused businesses.
If you are looking to buy or sell an IT or software services company, it’s important to understand how these businesses are valued in the business for sale market. To provide some context, we have aggregated IT and software service business for sale listing data below and surfaced important financial and valuation metrics.
Market Overview
|
Number of Businesses Analyzed |
124 |
|
Median Asking Price |
$1,049,250 |
|
Median Reported Revenue |
$809,418 |
|
Median Reported Earnings |
$290,604 |
|
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. |
|
IT and Software Services Business Valuation Multiples
|
Range |
Revenue |
Earnings (SDE) |
|
Lower Quartile |
0.76 |
2.76 |
|
Median |
1.24 |
3.46 |
|
Upper Quartile |
2.14 |
5.04 |
|
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. |
||
Read the Report:
IT and Software Services Business Valuation Multiples & Financial Benchmarks
FAQs
How much does it cost to buy an IT or software services company?
Prices vary depending on the size of the business listed, but the median asking price for an established IT or software services business is $1,049,250.
How much do IT and software services business owners earn?
IT and software services business owners report median annual revenue of $809,418 and annual owner earnings of $290,604. These figures are based on businesses that have listed their annual revenue and seller's discretionary earnings.
How do I value an IT or software services business?
Valuing an IT or software services business involves considering several factors, including annual revenue, profit, growth (or decline) trends, and competition in the app market. 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 among IT and software service businesses listed for sale in the U.S. range from 0.76 to 2.14, with the median at 1.24. Earnings multiples range from 2.76 to 5.04, with the median at 3.46. These values suggest the average IT or software service business listed for sale may trade for around 1.24 times its annual revenue, and 3.46 times its annual owner’s earnings.
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