Keaau, HI
Our client is a managed services provider, located in one of the most desirable locations in the United States. They focus on voice and data solutions, cloud services (including cloud web hosting),...
Keaau, HI
Our client is a managed services provider, located in one of the most desirable locations in the United States. They focus on voice and data solutions, cloud services (including cloud web hosting),...
Cash Flow: $1,320,000
New Mexico
The Company operates as two entities with separate business lines in the information technology solutions industry. One entity offers services including wireless solutions, network security, remote...
Cash Flow: $268,000
North Carolina
$400,000
Saint Louis, MO
$325,000
Pierce County, WA
$3,572,000
Oregon
Cash Flow: $750,062
Tennessee
Cash Flow: $493,655
Colorado
Cash Flow: $288,000
Fort Bend County, TX
$100,000
Wake County, NC
$900,000
California
$300,000
California
$995,000
Essex County, MA
$2,975,000
$6,600,000
Boulder, CO
Cedar Grove, NJ
$1,199,000
Gregory Carafello
First Choice Business Brokers of Manhattan
Serving Suffolk County, NY
Founded in 1994, First Choice Business Brokers is one of the largest Business Sales Organizations in the world, with multiple offices located throughout the U.S. listing over $7 billion worth of businesses. Our New York City office consists of 1 Principal, 3 Associates, and administrative personnel. In addition, we have a select team of professional service providers we can recommend that can provide legal, accounting, planning, financing and various other services. First Choice Business Brokers is a member in good standing with the Better Business Bureau (A+ Rating). The FCBB office is located in Manhattan which covers the entire New York and New Jersey Regions. The Principle Broker, Gregory J. Carafello, has over 38 years of extensive Business Ownership experience as a small to medium sized business owner since 1998.
Sugar Grove, IL
$1,589,000
Richmond, VA
$1,650,000
New York, NY
$2,900,000
California
$2,200,000
Canada
Tampa, FL
$260,000
$1,200,000
Atlanta, GA
Ottawa, ON
$450,000
Williamson County, TX
$650,000
Santa Clara County, CA
New York
Cash Flow: $1,206,650
New York
Cash Flow: $460,000
Leesburg, VA
$225,000
Orange County, CA
Buenos Aires
$8,250,000
Salt Lake City, UT
$49,995
Jefferson County, KY
$2,995,000
$1,200,000
Newington, CT
Colorado
$2,500,000
Texas
Singapore
$2,900,000
Yardley, PA
$325,000
Melbourne
$10,725,000
New York
$2,500,000
Oklahoma
Brevard County, FL
Scott Sogard
Sogard Properties
Serving Providence County, RI
20 years as multi unit Restaurant and Lodging owner/operator 21 years as Hospitality Broker on both Buy and Sell side We can help with repositioning your operation for increased earnings Unlike the competition we have an actual track record of Confidential Sales
Utah
$1,500,000
Utah
$4,900,000
Kitsap County, WA
Orange County, CA
$4,000,000
Texas City, TX
$2,958,000
New Castle County, DE
Orange County, CA
Virginia
$349,000
Houston, TX
$3,500,000
Information technology and software service businesses listed and sold on BizBuySell include managed IT companies (managed service providers, or MSPs), cyber security firms, software platform consultants, marketing services businesses, and related firms. These businesses offer personalized technology services that cater primarily to businesses, making them more stable and recession resistant than typical consumer focused businesses.
If you are looking to buy or sell an IT or software services company, it’s important to understand how these businesses are valued in the business for sale market. To provide some context, we have aggregated IT and software service business for sale listing data below and surfaced important financial and valuation metrics.
Market Overview
Number of Businesses Analyzed |
124 |
Median Asking Price |
$1,049,250 |
Median Reported Revenue |
$809,418 |
Median Reported Earnings |
$290,604 |
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. |
IT and Software Services Business Valuation Multiples
Range |
Revenue |
Earnings (SDE) |
Lower Quartile |
0.76 |
2.76 |
Median |
1.24 |
3.46 |
Upper Quartile |
2.14 |
5.04 |
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. |
Read the Report:
IT and Software Services Business Valuation Multiples & Financial Benchmarks
FAQs
How much does it cost to buy an IT or software services company?
Prices vary depending on the size of the business listed, but the median asking price for an established IT or software services business is $1,049,250.
How much do IT and software services business owners earn?
IT and software services business owners report median annual revenue of $809,418 and annual owner earnings of $290,604. These figures are based on businesses that have listed their annual revenue and seller's discretionary earnings.
How do I value an IT or software services business?
Valuing an IT or software services business involves considering several factors, including annual revenue, profit, growth (or decline) trends, and competition in the app market. 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 among IT and software service businesses listed for sale in the U.S. range from 0.76 to 2.14, with the median at 1.24. Earnings multiples range from 2.76 to 5.04, with the median at 3.46. These values suggest the average IT or software service business listed for sale may trade for around 1.24 times its annual revenue, and 3.46 times its annual owner’s earnings.
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