Atlanta, GA
$1,200,000
Atlanta, GA
$1,200,000
Roswell, GA
$450,000
Pinellas County, FL
$30,000
Marietta, GA
$899,000
San Diego County, CA
$875,000
Camden County, NJ
$90,000
Santa Clara County, CA
$879,000
Florida
$1,250,000
Jersey City, NJ
$2,300,000
Orange County, CA
$325,000
Birmingham, AL
$474,900
Montgomery County, PA
$385,000
North Hollywood, CA
$195,000
California
Not Disclosed
Cash Flow: $489,000
Los Angeles County, CA
$295,000
Johnson City, TN
$800,000
Andy Rumph
The Decain Group
Serving Lawrence County, IN
The Decain Group works with buyers and sellers exclusively in the Death Care Industry. We work with sellers on succession plans, getting their business ready to sell, marketing their firm and helping to negotiate with qualified buyers. We do the heavy lifting so that sellers can focus on the day to day operations of the business. For buyers, we work hand in hand to get them qualified by matching with preferred lenders. The Decain Group will seek out potential funeral homes that are of interest and work with the sellers to put a deal together. The broker for The Decain Group is a licensed funeral director and former owner of several businesses within the death care space giving us unique knowledge in the industry.
Jamaica, NY
$1,750,000
Multnomah County, OR
$1,518,725
Alameda County, CA
$79,500
Roswell, GA
$150,000
New York
$1,350,000
Connecticut
$65,000
$1,400,000
Nassau County, NY
$1,250,000
Orlando, FL
$379,000
Norfolk County, MA
$353,157
Monroe County, FL
$350,000
Simi Valley, CA
$150,000
Richmond, VA
$2,400,000
Brooklyn, NY
$245,000
Charlotte, NC
$700,000
Rhode Island
$600,000
Austin, TX
$1,750,000
Ormond Beach, FL
$44,760
Utah
$425,000
Ormond Beach, FL
$84,120
Minnesota
$125,000
Miami-Dade County, FL
$455,000
Rochester, NY
$375,000
Tarrant County, TX
$175,000
Ohio
$1,300,000
Bergen County, NJ
Not Disclosed
Cash Flow: $2,500,000
Miami-Dade County, FL
$349,000
King County, WA
$155,000
James Shin
SK Realty
Serving Maricopa County, AZ
Honolulu, HI
Not Disclosed
Cash Flow: $1,350,000
Jackson Heights, NY
$299,000
Fayetteville, AR
$143,900
Los Angeles County, CA
$2,000,000
New Castle County, DE
$200,000
Glendora, CA
$375,000
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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