Fort Wayne, IN
$197,000
Fort Wayne, IN
$197,000
Denver, LA
$299,890
$159,900
Las Vegas, NV
$389,900
Las Vegas, LA
$135,000
Marietta, LA
$295,800
Memphis, TN
$389,900
Orlando, LA
$159,899
Volusia County, FL
$1,800,000
Greenville, SC
$310,000
Orlando, FL
$470,000
Cobb County, GA
$350,000
Cambridge, WI
$279,000
$15,000
Tomball, TX
Volusia County, FL
$107,000
Providence County, RI
$125,000
Marvin Slovacek
Murphy Business & Financial Corporation
Serving Salt Lake County, UT
I am the Regional Director for the state of Utah and a Certified Merger & Acquisition Intermediary.
Fort Bend County, TX
$79,200
Miami, FL
$395,000
Marion County, IN
$249,900
Bonney Lake, WA
$290,000
Prince George's County, MD
$1,699,000
Manteca, CA
$325,000
Cumming, GA
$200,000
Dania Beach, FL
$347,000
$1,900,000
Elgin, IL
Lee County, FL
$1,500,000
St. Clair County, MI
$1,695,000
Dane County, WI
$715,000
Frederick County, MD
$422,000
Tacoma, WA
$270,000
Lucas County, OH
$255,000
San Luis Obispo County, CA
$920,000
REAL ESTATE INCLUDED
St Germain, WI
$869,900
Macon Brm, GA
$1,000,000
Centre County, PA
$560,000
$295,000
Norwood, MA
Ocean County, NJ
$189,000
Nassau County, NY
$165,000
Not Disclosed
EBITDA: $687,047
Kootenai County, ID
$570,000
Kings County, NY
$489,000
Queens County, NY
$149,000
Passaic County, NJ
$69,000
York County, ME
$119,000
Laurie Dubow
Signature Commercial Real Estate
Serving Palm Beach County, FL
Your Commercial and Residential Real Estate Concierge
Providence County, RI
$200,000
York County, ME
$529,000
$125,000
Garner, NC
Kings County, NY
$169,000
Richmond County, NY
$109,000
Raleigh, NC
$249,000
Charleston, SC
$269,000
Charlotte, NC
$279,000
Austin, TX
$285,000
Queens County, NY
$165,000
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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