San Diego County, CA
$220,000
San Diego County, CA
$220,000
Lehigh County, PA
$400,000
Palm Beach County, FL
$285,000
Minnesota
$1,050,000
Brooklyn, NY
$375,000
Queens, NY
$240,000
Lee County, IL
$500,000
Denton County, TX
$149,999
Brevard County, FL
$123,220
Kansas
$1,500,000
Minnesota
$700,000
South Dakota
$600,000
Lawrenceville, GA
$290,000
$80,000
Anchorage, AK
Saint Paul, FL
$249,000
REAL ESTATE INCLUDED
Hamilton County, OH
$1,300,000
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.
Orange County, CA
$4,200,000
Evansville, IN
$89,900
Boston, MA
$389,000
Vienna, VA
$485,800
Hilton Head Island, SC
$75,000
Westlake Village, CA
$350,000
Daly City, CA
$99,000
Vancouver, WA
$70,000
$199,000
Miami, FL
$1,450,000
Richmond, VA
$799,000
Santa Rosa, CA
$85,000
Brooklyn, NY
$319,000
North Carolina
$1,199,000
Houston, TX
Not Disclosed
Cash Flow: $322,400
Nashville, TN
$177,000
Jackson County, GA
$456,171
Ontario
$430,000
South River, NJ
$120,000
$122,000
Oklahoma City, OK
Hyrum, UT
$107,000
San Joaquin County, CA
$450,000
Sioux City, IA
$10,000
Arcadia, CA
$795,000
Watsonville, CA
$695,000
Powder Springs, GA
$70,000
Chatsworth, CA
$600,000
Stanislaus County, CA
$600,000
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!!
Polk County, FL
$89,000
Lynn, MA
$159,000
$160,000
Wilmington Manor, DE
Biddeford, ME
$190,000
Myrtle Beach, SC
$210,000
Twin Falls, ID
$150,000
Conroe, TX
$93,000
New York
$225,000
Chesterfield, MO
$225,000
Macomb County, MI
$225,000
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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