Brentwood, TN
$295,000
Brentwood, TN
$295,000
Brooklyn, NY
$3,000,000
Missouri
$1,095,000
McHenry County, IL
$639,000
Anaheim, CA
$864,000
Raleigh, IN
$168,900
Boston, MA
$98,000
Carencro, LA
$1,295,000
Minneapolis, MN
$279,990
Cincinnati, OH
$280,000
Palm Beach County, FL
$149,000
Minnesota
$100,000
Kissimmee, FL
$120,000
Kent County, DE
$250,000
Indiana
$350,000
Mishawaka, IN
$219,000
Mac Thelen
Opportunities In Business
Serving Hennepin County, MN
Dutchess County, NY
$165,000
South Bend, IN
$219,000
Indianapolis, IN
$219,000
Suffolk County, NY
$150,000
Eagle Rock, CA
$670,000
REAL ESTATE INCLUDED
Moore County, NC
$700,000
Mississippi
$1,650,000
North Carolina
$2,500,000
REAL ESTATE INCLUDED
Sainte Genevieve, MO
$215,000
Dallas County, TX
$1,750,000
REAL ESTATE INCLUDED
Plano, TX
$3,200,000
Brooklyn, NY
$220,000
New York
$590,000
Saco, ME
$130,000
Los Angeles, CA
$770,000
Macomb County, MI
$199,000
Macomb County, MI
$199,000
Polk County, IA
$150,000
Oneida County, NY
$495,000
Maricopa County, AZ
$80,000
Hartford, OH
$139,999
Westchester County, NY
$850,000
REAL ESTATE INCLUDED
Illinois
Cash Flow: $895,155
Charlotte, NC
$150,000
Salt Lake City, UT
$149,995
Suffolk County, NY
$3,200,000
Denver, CO
$240,000
New Jersey
$2,500,000
Dan Berry
FranFinder Inc
Serving Salt Lake County, UT
Dan Berry has 30 plus years of experience in real estate sales, property management, business development and finance. Dan has represented various new home builders in all facets of their homebuilding and development including D.R. Horton Custom Homes, Trophy Homes, Hubble Homes and McMullin Homes in Utah as well as national franchise company Property Management Inc., grow from 20 franchise to over 500 current franchises throughout the U.S. In addition, his clients include banks, servicing companies, development companies and private investors. Dan wealth of experience consists of a diversity of projects: raw land, single-family, multi-family and commercial development as well as residential and commercial property management.
Saint Louis, MO
$129,900
Chattanooga, TN
$249,000
New Jersey
$425,000
Lancaster County, NE
$325,000
Tonawanda, NY
$299,000
Worcester County, MA
$149,000
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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