Merrick, NY
$130,000
Merrick, NY
$130,000
College Park, GA
$850,000
REAL ESTATE INCLUDED
Anderson, SC
$3,900,000
Tucson, AZ
$2,700,000
Hennepin County, MN
$399,900
REAL ESTATE INCLUDED
Missouri
$3,500,000
Newburgh, NY
$1,699,000
Glendale, AZ
$379,000
Ohio
$704,300
Nashville, TN
$295,000
Arizona
$650,000
Boston, MA
$1,265,000
Arvada, CO
$40,000
Oakland County, MI
$110,000
Sedona, AZ
$76,000
Maricopa County, AZ
$285,000
John Weisler
JW Michaels Realty Services, LLC
Serving Clark County, NV
JW Michaels offers a variety of professional services for both business buyer and services Business analysis, marketability and financial consulting to maximize your profits. A consultive approach with both Buyer and Seller from valuation through transfer of ownership, always creating a win-win outcome.
Macomb County, MI
$59,000
Not Disclosed
Cash Flow: $542,874
Brentwood, TN
$95,000
Collier County, FL
$800,000
Northampton County, PA
$270,000
New Zealand
$2,500,000
Colorado
$2,300,000
Piedmont, SC
$279,000
San Diego County, CA
$56,250
Fort Lauderdale, FL
$280,000
New York County, NY
$1,450,000
Oklahoma
$1,700,000
Columbus, OK
$119,900
Memphis, TN
$650,000
Columbia, SC
$375,000
Mattapoisett, MA
$575,000
Columbia, SC
$950,000
Denver County, CO
$439,000
Las Vegas, NV
$120,000
Texas
$1,500,000
New Market, ON
$249,800
Texas
$2,900,000
Alabama
$2,150,000
Kentucky
$2,300,000
Pottawattamie County, IA
$1,150,000
Montgomery County, AL
$695,000
Virginia
$2,495,000
Nassau County, FL
$450,000
Jema Edwards
Jem Advisory Solutions
Serving San Diego County, CA
Alpharetta, GA
$399,899
St. Louis County, MO
$949,000
Vero Beach, FL
$299,999
Dallas County, TX
$190,000
Gloucester Township, NJ
$165,000
Wichita, KS
$95,000
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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