San Diego County, CA
$120,000
San Diego County, CA
$120,000
Fort Worth, TX
$225,000
Rowan County, NC
$305,000
Frederick County, MD
$1,600,000
Orange County, NY
$425,000
Nassau County, NY
$400,000
Missouri
$131,000
Macomb County, MI
$225,000
Bradenton, FL
$200,000
Montana
$2,599,000
Los Angeles, CA
$550,000
Alaska
$1,790,000
Okaloosa County, FL
$2,250,000
$199,000
Sharon, VT
Upper Saddle River, NJ
$47,500
Sugar Grove, IL
$1,589,000
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.
Myrtle Beach, SC
$100,000
Athens, GA
$100,000
Covington, KY
$85,000
Newport News, VA
$550,000
Windsor, CA
$1,100,000
Bowling Green, KY
$619,000
Cheektowaga, NY
$1,679,000
Nashville, TN
$619,000
$120,000
Desert Hot Springs, CA
Fredericksburg, VA
$1,095,000
Bartlett, TN
$750,000
Indianapolis, IN
$995,000
Charleston, SC
$495,000
West Henrietta, NY
$914,000
Tulsa, OK
$490,000
Akron, OH
$195,000
Hayward, CA
$925,000
Las Vegas, NV
$195,000
Kansas City, MO
$2,625,000
$180,000
Wilmington, DE
Columbia, MO
$2,625,000
Houston County, AL
$130,000
Kansas
$230,000
Ramsey, NJ
$99,500
Kansas
$1,025,000
New Jersey
$399,000
Shrewsbury, MA
$74,500
Baton Rouge, LA
$175,000
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!!
Flushing, NY
$495,000
Topeka, KS
$490,000
Washington, DC
$795,000
Kelowna, BC
$610,000
Not Disclosed
EBITDA: $512,000
Indianapolis, IN
$300,000
Canandaigua, NY
$400,000
Pennsylvania
$875,000
Pasco County, FL
$315,000
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.
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