Middlesex County, MA
$160,000
Middlesex County, MA
$160,000
Texas
$1,499,000
REAL ESTATE INCLUDED
Benton County, OR
$1,400,000
Illinois
$2,799,000
Cincinnati, OH
$295,000
San Bernardino County, CA
$250,000
REAL ESTATE INCLUDED
Texas
$1,200,000
Florida
$2,500,000
Tucson, AZ
$69,000
New York County, NY
$4,500,000
Maple Shade, NJ
$200,000
Pennsylvania
$640,000
$240,000
San Luis Obispo County, CA
$235,000
Crenshaw County, AL
$858,000
Lexington, KY
$279,950
Mac Thelen
Opportunities In Business
Serving Hennepin County, MN
Charleston, SC
$375,000
Henrico County, VA
$499,000
Washoe County, NV
$220,000
Alabama
Norfolk County, MA
$99,000
Rego Park, NY
$109,222
East Meadow, NY
$390,000
Brooklyn, NY
$698,000
$2,799,000
Plymouth County, MA
$450,000
Bronx County, NY
$898,000
Georgia
$470,000
Texas
Cash Flow: $2,332,146
Alameda County, CA
Cash Flow: $200,000
Utah
$25,000
Naples, FL
$385,000
REAL ESTATE INCLUDED
Los Angeles County, CA
$7,500,000
Northridge, CA
$7,500,000
Cook County, IL
$559,600
Atlanta, GA
$2,200,000
Philadelphia, PA
$79,000
San Francisco County, CA
$1,400,000
Spring, TX
$79,000
Fayette County, KY
$399,000
Morris County, NJ
$299,000
Portland, OR
$599,500
Bernalillo County, NM
$220,000
Nanuet, NY
$125,000
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.
New Orleans Naval Air, LA
$1,200,000
Norfolk City County, VA
$435,000
Dayton, OH
$10,000
California
Bronx County, NY
$1,471,800
Marietta, GA
$1,250,000
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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