Alameda County, CA
Not Disclosed
Cash Flow: $100,000
Alameda County, CA
Not Disclosed
Cash Flow: $100,000
Colombia, Mexico, Brazil
$36,050,000
Velenje
$1,287,500
St. Louis County, MO
$60,000
Montgomery County, MD
$2,150,000
Reeuwijk
$1,530,000
Pittsburgh, PA
$2,580,000
New Jersey
$2,500,000
Nevada
$25,000
California
Not Disclosed
EBITDA: $600,000
New Jersey
$5,900,000
Phoenix, AZ
$1,750,000
Santa Cruz
$20,500,000
Contra Costa County, CA
Not Disclosed
Cash Flow: $438,000
Riyadh
$55,000,000
Illinois
$2,000,000
Jack Chung
BTI Group
Serving San Francisco County, CA
Business Team, a unit of BTI Group, is the Largest Business Brokerage Firm in the Western United States specializing in arranging the purchase and sale of privately owned companies. During our third of a century of existence, we have developed both an unmatched depth of experience (an aggregate of several hundred years!) and a vast network of individual, corporate, and investment group buyers. In addition, our affiliation with the International Business Brokers Association allows us to reach buyers represented by other intermediary firms throughout the world.
Wisconsin
$1,100,000
Anne Arundel County, MD
$425,000
Alameda County, CA
Not Disclosed
Cash Flow: $1,000
South Carolina
$750,000
Charlotte, NC
$10,000
Alameda County, CA
Not Disclosed
Cash Flow: $155,000
Denver, CO
$29,000,000
California
$750,000
St. Louis County, MO
$1,300,000
Alameda County, CA
Not Disclosed
Cash Flow: $975,496
Pleasanton, CA
Not Disclosed
Cash Flow: $400,322
$995,000
New York, NY
$2,100,000
Ireland
$1,330,000
Virginia Beach County, VA
Not Disclosed
Cash Flow: $168,000
Pennsylvania
$790,000
Albany County, NY
$1,100,000
Raleigh, NC
$1,500,000
Texas
Not Disclosed
EBITDA: $76,000
Saint Cloud, MN
$975,000
Zagreb
$2,000,000
New Castle County, DE
Not Disclosed
Cash Flow: $210,000
Texas
$96,000,000
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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