San Bernardino County, CA
$3,600,000
San Bernardino County, CA
$3,600,000
West Hollywood, CA
$330,000
San Francisco County, CA
$145,000
Santa Monica, CA
$325,000
San Jose, CA
$115,000
San Diego, CA
$1,750,000
Los Angeles County, CA
$25,000
Contra Costa County, CA
$169,000
Santa Clara, CA
$75,000
Carson, CA
$995,000
Available Nationwide
$100,000
Newark, CA
$893,000
San Diego County, CA
$800,000
Roseville, CA
$199,000
Los Angeles County, CA
$299,000
Orange County, CA
$650,000
D. Joe Atchison, CBB,CMMBI,MBA,CPA
Sunbelt Business Sales, Mergers & Aquisitions
Serving Riverside County, CA
Mr. Atchison has financial, sales/marketing and general management skills. Joe's last position in corporate America was as the President/CEO of a manufacturing company in Irvine, CA for 11 years. In that role he focused the company's efforts on new product development (five patents issued), manufacturing efficiencies (gross margins increased from 23% to 52%) quality (achieved ISO9001 and QS9000 certifications), and a strong emphasis on sales, marketing and customer service resulting in double digit sales growth. Prior to that he was the Chief Financial Officer of two publicly traded companies. During his corporate career, Mr. Atchison was successful in selling a number of divisions, subsidiaries and stand alone businesses. These successes motivated Joe to start his Sunbelt Business Brokers office. Mr. Atchison is also President of Atchison Advisory, Inc., which provides operational improvement consulting to under-performing companies in an effort to help them achieve their potential and thus be able to sell sooner and at a better price and more favorable terms. Mr. Atchison is a Certified Business Intermediary (International Business Brokers Association), a Certified Business Broker (California Business Brokers Association), a Certified Middle Market Business Intermediary and is a Certified Public Accountant - inactive (State of California). His education includes a bachelors of science in accounting and a Masters in Business Administration - Finance. Joe serves on the Forms Committee of the California Association of Business Brokers. Mr. Atchison is the Treasurer and a Board member of Project: Steps to Christ, Inc. – a non-profit company based in New York that distributes Christian books to homes in North America..
Irvine, CA
$650,000
Ventura County, CA
$700,000
Irvine, CA
$175,000
Sun Valley, CA
$1,650,000
Available in California
$65,000
San Rafael, CA
$149,000
Chino, CA
$1,270,000
Los Angeles, CA
$645,000
San Diego County, CA
$525,000
Arcadia, CA
$143,000
Alameda County, CA
$175,000
Eagle Rock, CA
$670,000
Los Angeles, CA
$770,000
Orange County, CA
$695,000
Available in California
$25,000
Shasta County, CA
$1,000,000
Santa Monica, CA
$249,000
Newhall, CA
$100,000
Los Angeles, CA
$598,000
Available in California
$60,000
Encino, CA
$119,000
California
$500,000
San Bernardino County, CA
$250,000
San Luis Obispo County, CA
$235,000
Alameda County, CA
Not Disclosed
Cash Flow: $200,000
REAL ESTATE INCLUDED
Los Angeles County, CA
$7,500,000
Northridge, CA
$7,500,000
California
Not Disclosed
EBITDA: $775,000
Tim Gunsten
The Exit Company
Serving San Diego County, CA
California
$995,000
Available Nationwide
$30,000
For those in the market to buy or sell a service business in California, 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 California service businesses.
Market Overview
Number of Businesses Analyzed |
423 |
Median Asking Price |
$322,500 |
Median Reported Revenue |
$400,000 |
Median Reported Earnings |
$136,896 |
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. |
California Service Business Valuation Multiples
Range |
Revenue |
Earnings (SDE) |
Lower Quartile |
0.52 |
1.76 |
Median |
0.80 |
2.58 |
Upper Quartile |
1.18 |
3.47 |
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. |
Read the Report:
Service Business Valuation Multiples & Financial Benchmarks
FAQs
How much does it cost to buy a service business in California?
Prices vary depending on sales volume and financial performance, but the median asking price for a service business in California is approximately $322,500.
How much do service business owners earn?
These businesses vary in sales volume, but California service business owners report median annual sales of $400,000 and annual owner earnings of $136,896. 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 in California range from 0.52 to 1.18, with the median at 0.80. Earnings multiples range from 1.76 to 3.47, with the median at 2.58. These values indicate that a typical service business in California may sell for around 0.80 times its annual revenue, and 2.58 times its annual owner’s earnings.
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