Buenos Aires
$8,250,000

Buenos Aires
$8,250,000

Singapore
$1,800,000

Oklahoma
$1,300,000

Brevard County, FL
Not Disclosed
Orange County, CA
$1,000
Texas City, TX
$2,958,000
Hamilton County, OH
$215,000
Not Disclosed
Los Angeles, CA
$15,000,000
Not Disclosed
New York, NY
$2,500,000
$1,600,000
San Jose, CA
Not Disclosed
Not Disclosed
Dallas, TX
$150,000
Alameda County, CA
Not Disclosed
Mike Costello
Costello Capital Management, LLC
Serving Hamilton County, TN
Mike Costello, our managing member, has consulted several business owners relating to the successful sale of their ownership interests. A recent example occurred in August 2021, prior to his retirement from Elliott Davis, when he was retained as a consultant with respect to the sale of a middle market company located in the Tennessee Valley. In this case, he provided assistance to the company’s owner and management team, resulting in the successful sale to a strategic buyer (a public company in the industry) in December, 2021 for $58 million. In July, 2022, he received a request from another Tennessee Valley middle market company to perform business broker services. These events motivated Costello to serve as a business broker. As a result, he retired from Elliott Davis and formed Costello Capital Management, LLC (“CCM”) in October, 2022. CCM is already actively engaged with other regional clients exploring the sale of their businesses. CCM is uniquely qualified to determine the best approach for marketing a business entity for sale. This could include going to: -private equity groups (financial buyers), -industry members (as mentioned above), or -the local market (including networking with CPAs, bankers, attorneys or known potential buyers), depending upon the size of the business. Costello’s experience and in-depth knowledge of business transactions is beneficial at every stage of a business transaction: determining the optimal sales process, establishing an appropriate sales price, negotiating to realize the targeted sales price and then managing the transaction to a successful closing.
Maricopa County, AZ
$645,000
California
$300,000
Sacramento, CA
$5,610,000
Alameda County, CA
Not Disclosed
London
$930,000
$2,950,000
Mercer County, NJ
$10,500,000
Melbourne, FL
$500,000
Greenville, SC
$299,999
Colombia, Mexico, Brazil
$36,050,000
Reeuwijk
$1,530,000
West Palm Beach, FL
$10,000,000
Santa Cruz
$20,500,000
Heber City, UT
$2,400,000
Riyadh
$55,000,000
Illinois
$2,000,000
South Carolina
$750,000
Charlotte, NC
$10,000
Alameda County, CA
Not Disclosed
St. Louis County, MO
$1,300,000
$995,000
Texas
Not Disclosed
Zagreb
$2,000,000
New Castle County, DE
Not Disclosed
Texas
$96,000,000
| Market Overview | Listed for Sale |
|---|---|
| Number of Businesses Analyzed | 166 |
| Median Asking Price | $1,200,000 |
| Median Reported Revenue | $1,127,228 |
| Median Reported Seller's Discretionary Earnings | $320,073 |
Asking Price
| Lower Quartile | Median | Upper Quartile |
|---|---|---|
| $492,250 | $1,200,000 | $2,526,250 |
Market Financial Highlights
The financial data presented here is an aggregation of reported revenue and earnings of IT and Software Service Businesses for sale.
| Bound | Revenue | Seller’s Discretionary Earnings |
|---|---|---|
| Lower Quartile | $526,000 | $158,750 |
| Median | $1,127,228 | $320,073 |
| Upper Quartile | $2,307,207 | $607,344 |
Valuation Multiples
The valuation multiples listed below are derived from asking price, revenue, and seller’s discretionary earnings of IT and Software Service Businesses listed for sale.
| Bound | Revenue Multiple | Earnings Multiple |
|---|---|---|
| Lower Quartile | 0.68 | 2.68 |
| Median | 1.20 | 3.65 |
| Upper Quartile | 2.06 | 4.58 |
| Find out what these types of businesses actually sell for with a BizBuySell Valuation Report | ||
FAQ's
How much does it cost to buy an IT and Software Service Business?
The median asking price for an established IT and Software Service Business is $1,200,000, though prices range from under $492,250 to well over $2,526,250.
How much do IT and Software Service Businesses owners earn?
The median reported revenue of IT and Software Service Businesses is $1,127,228 and owners earn a median of $320,073, which includes the owners salary and any other financial benefits they receive.
How do I value an IT and Software Service Business?
Valuing a business is a complex process, but buyers and sellers often turn to the local market to understand how businesses are priced. Based on our most recent analysis of IT and Software Service Businesses, revenue multiples range from 0.68 to 2.06, with a median of 1.20. Earning multiples range from 2.68 to 4.58, with the median at 3.65. This means the typical IT and Software Service Business may ask for around 1.20 times its annual revenue, and 3.65 times its annual owner earnings.
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