Travis County, TX
$878,000
Travis County, TX
$878,000
Atlanta, GA
$100,000
Collin County, TX
$420,000
Los Angeles, CA
$115,000
Philadelphia, PA
$339,900
Wayne County, MI
$875,000
REAL ESTATE INCLUDED
Baltimore, MD
$849,000
Greenville County, SC
$295,000
Sarasota, FL
$175,000
Dallas County, TX
$295,000
Scranton, PA
Not Disclosed
Cash Flow: $186,226
North Myrtle Beach, SC
$155,000
El Paso, TX
$1,100,000
Fresh Meadows, NY
$135,000
Fort Lauderdale, FL
$340,000
Orlando, FL
$1,600,000
Murphy Business
Murphy Business & Financial Services LLC
Serving Pinellas County, FL
Murphy Business provides both clients and business associates with the highest standards of professional service and unmatched performance in the sale of privately held businesses, mergers & acquisitions, franchise sales, business valuations, machinery & equipment appraisal, commercial real estate and business consulting. With the team at Murphy Business, you can be assured you are represented by outstanding, experienced and knowledgeable professionals who will provide you with sound financial, strategic and tactical implementation to achieve a successful transaction.
Suffolk County, NY
$2,700,000
Detroit, TX
$985,000
New York
Not Disclosed
EBITDA: $247,000
Glendale, AZ
$199,500
Las Vegas, NV
$515,000
Orange County, FL
$1,000,000
Baton Rouge, LA
$175,001
Colorado
$375,000
El Paso, TX
$895,000
Aurora, IL
$250,100
San Diego County, CA
$750,000
$4,000,000
Jefferson County, CO
$279,000
Lansing, MI
$500,000
Taylor, TX
$995,000
Marion County, FL
$95,000
South Carolina
$2,000,000
Colorado Springs, CO
$175,000
Larimer County, CO
$375,000
Cincinnati, OH
$1,330,000
Albuquerque, NM
$339,000
California
$4,650,000
South Bend, IN
$49,000
Florida
$399,999
Connecticut
$110,000
Lancaster County, PA
$645,000
Washtenaw County, MI
$846,000
Austell, GA
$1,300,000
Shailendra Gupta, MBA, PhD
Transworld Business Advisors of Fremont
Serving Alameda County, CA
Founded in 1979, Transworld Business Advisors is the world leader in the marketing and sales of businesses, mergers and acquisitions, and franchises. We have nearly 300 offices around the globe and have sold thousands of business in almost every industry.
New London County, CT
$246,000
Charleston County, SC
$875,000
Arizona
$650,000
Holbrook, NY
$375,000
Kent County, MI
$1,700,000
Tulsa, OK
$85,000
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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