Maui County, HI
$125,000
Maui County, HI
$125,000
Cleveland, OH
$489,999
Tampa, FL
$121,899
Tulsa, OK
$199,999
REAL ESTATE INCLUDED
New Albany, IN
$450,000
Lemon Grove, CA
$400,000
Charleston County, SC
$120,000
Myrtle Beach, SC
$150,000
Honolulu County, HI
$125,000
Dallas, TX
$450,000
San Diego, CA
$1,210,000
New Mexico
Not Disclosed
Cash Flow: $310,000
Parkland County, AB
Not Disclosed
EBITDA: $746,784
$4,600,000
Oregon
Lubbock County, TX
$275,000
Indian River County, FL
$1,125,000
Mark Griffin, CMAA,CCIM
Topsail Capital Advisors
Serving Greenville County, SC
Topsail Capital Advisors is a leading nationally recognized middle-market M&A advisory firm specializing in selling founder-owned companies, typically working with owners that are families or entrepreneurs to help guide them through a successful sale process. TCA strives to help our clients accomplish their goals to sell or recap their business while maximizing the price, terms, structure, and fit of any transaction. Our extensive network of contacts and relationships with private equity firms, family offices, and corporate buyers extends across the country. TCA was founded by twenty-year business M&A and commercial real estate veteran Mark Griffin, CM&AA, CCIM. While Mr. Griffin and his team of Analysts and specialty advisors have clients located throughout the US, we focus on privately held lower middle market companies located within the southeastern US. TCA also provides buy-side advisory for private equity groups, family offices, and corporations seeking add-on acquisitions. TCA is a member of the Alliance of Merger & Acquisition Advisors (AM&AA) and the Certified Commercial Investment Member Institute (CCIM). The TCA team are experts in conducting business and real estate market valuations as well as structuring sale-leaseback arrangements whereas the business is sold and the building or facility is in turn “leased back” to the business purchaser. The real estate is then sold separately to private investors/ groups which allows the owner to capitalize on both the sale of the business and real estate at exit.
Harrison, NY
$350,000
Dallas, TX
$415,000
Baton Rouge, LA
$99,500
Margate, FL
$350,000
Bergen County, NJ
$1,700,000
REAL ESTATE INCLUDED
Cape Coral, FL
$2,100,000
Arizona
$3,190,000
Atlanta, GA
$599,000
$1,000,000
Tucson, AZ
Phoenix, AZ
$1,500,000
Brentwood, NY
$110,000
Ashburn, VA
$295,000
Hamilton, ON
$260,000
Anaheim, CA
$100,000
Charleston County, SC
$1,750,000
Dallas County, TX
$5,000,000
Delaware County, PA
$1,250,000
Harris County, TX
$1,750,000
REAL ESTATE INCLUDED
Oklahoma
Not Disclosed
Cash Flow: $588,621
$125,000
Cleveland, OH
REAL ESTATE INCLUDED
Missouri
$1,100,000
Texas
Not Disclosed
Cash Flow: $146,723
Arkansas
Not Disclosed
Cash Flow: $306,586
Texas
Not Disclosed
Cash Flow: $44,501
REAL ESTATE INCLUDED
Oklahoma
Not Disclosed
Cash Flow: $358,806
Oklahoma
Not Disclosed
Cash Flow: $479,562
REAL ESTATE INCLUDED
Oklahoma
$1,600,000
Oklahoma
$1,800,000
Andy Lopez
Andy Lopez, P.A.
Serving Miami-Dade County, FL
Texas
$1,400,000
Louisiana
$999,000
$2,470,000
Sacramento, CA
Texas
Not Disclosed
Cash Flow: $5,033,587
Oklahoma
$950,000
Nantucket, MA
$275,000
Dallas County, TX
$56,400
Stanislaus County, CA
$62,400
Missouri
$500,000
Memphis, TN
$249,000
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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