Texas
$1,350,000
Texas
$1,350,000
Chattanooga, TN
$199,000
Sylmar, CA
$450,000
Montebello, CA
$288,000
Los Angeles County, CA
$468,000
Battle Creek, MI
$600,000
Benton County, AR
$625,000
Kentucky
$2,000,000
Michigan
$1,100,000
Ohio
$174,951
Michigan
$184,950
Philadelphia County, PA
$339,000
Austin, TX
$130,000
Tarrant County, TX
$750,000
Monroe County, NY
$150,000
Tempe, AZ
$224,900
Gregory Barnes
Dynasty Business Advisors
Serving Mecklenburg County, NC
Dynasty Business Advisors partners with buyers and sellers to create lasting opportunities for entrepreneurship, business ownership, and generational wealth building. We offer specialized business advisory services tailored to each client. We guarantee that you will receive personalized strategies and guidance that align with your unique goals and challenges, whether you are selling or buying a business or in the succession planning process.
Columbia, SC
$147,000
Los Angeles County, CA
$160,000
Brazoria County, TX
$197,500
REAL ESTATE INCLUDED
Forsyth County, NC
$700,000
Merrimack County, NH
$850,000
$650,000
Worcester County, MA
$130,000
Portland, OR
$4,485,000
Orlando, FL
$2,950,000
New Port Richey, FL
$300,000
Colorado
$2,000,000
South Carolina
$650,000
San Antonio, TX
$1,300,000
Massachusetts
$230,000
Forest Park, GA
$1,650,000
Clermont, FL
$1,600,000
REAL ESTATE INCLUDED
$6,500,000
Acworth, GA
$369,000
Lawrenceville, GA
$250,000
Sarasota County, FL
$105,000
Roswell, GA
$169,000
Not Disclosed
EBITDA: $3,575,000
Alabama
$195,000
Minnesota
$250,000
New York
$349,000
Scottsdale, AZ
$125,000
Hampden County, MA
$490,000
Saint Louis, MO
$700,000
John McCarthy
Legacy Properties Sotheby's International
Serving Cumberland County, ME
Sotheby's Legacy is proud to be part of the Internationally acclaimed Sotheby's family. Coast to coast and around the world, I can help you to find that perfect property. That is the power of Sotheby's!!
Mobile, TN
$210,000
Richmond County, NY
$1,000,000
Hazleton, PA
$192,000
Westchester County, NY
$249,900
Orange County, FL
$225,000
Hillsborough County, NH
$29,900
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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