Colorado
$28,000

Colorado
$28,000
Blue Point, NY
$458,000

Portland, TX
$50,000
Elyria, OH
$40,000
Pinellas County, FL
$3,850,000
Florida
$2,500
Bedford, IN
$20,500
Houston, TX
$65,000
Chicago, IL
$625,000
Orange County, CA
$99,900
Tempe, AZ
$33,250
Havre De Grace, MD
$3,995
Suffolk County, NY
$450,000
York County, PA
$100,000
Winchester, CA
$45,000
Minneapolis, MN
$150,000
Jorge Benejam
Murphy Business & Financial Corporation
Serving Miami-Dade County, FL
Hialeah, FL
$75,000
Stafford, TX
$99,000
Buffalo, NY
$2,000
Inglewood, CA
$130,000
Connecticut
$395,000
Palm Beach County, FL
$125,000
Brevard County, FL
$150,000
$2,500,000
Denver, CO
$40,000
Hialeah, FL
$159,000
$1,925,000
Kennesaw, GA
$450,000
Riverside, CA
$39,000
Jacksonville, FL
$1,500,000
$1,799,800
Ceres, CA
$650,000
Garden Grove, CA
$50,000
Los Angeles, CA
$1,120,000
Naples, FL
$65,000
Middlesex County, NJ
$625,000
DuPage County, IL
$15,000
Pemberton Township, NJ
$2,000
Portland, OR
$65,000
Washington County, AR
$1,510,000
Tarpon Springs, FL
$30,000
Indian River County, FL
$2,500,000
Middlesex County, MA
$799,999
Anne Arundel County, MD
$110,000
Jaspal (Jas) Gahunia
JG Commercial Group
Serving Fresno County, CA
Anne Arundel County, MD
$99,000
San Diego County, CA
$305,000
Ontario
$75,000
Phoenix, AZ
$95,000
Paramount, CA
Not Disclosed
Los Angeles County, CA
$800,000
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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