Palm Beach County, FL
$68,820
Palm Beach County, FL
$68,820
Oviedo, FL
$154,000
Boise, ID
$200,000
Fairfield County, CT
$1,350,000
Austin, TX
$600,000
San Diego County, CA
$295,000
Indiana
$3,150,000
Phoenix, AZ
$1,300,000
San Antonio, TX
$400,000
Oakland County, MI
$9,000,000
Chicago, IL
$1,500,000
Kentucky
$1,250,000
South Carolina
$595,000
Bergen County, NJ
$1,200,000
REAL ESTATE INCLUDED
Henderson, NV
$5,500,000
Camden County, NJ
$50,000
Chris Springfield, CBI, CM&AA, PMP
Springfield Strategies, LLC
Serving Fulton County, GA
Complimentary Valuations and Success Fee-Based Services. Deciding to sell the business you’ve worked so hard to build is a major event for most entrepreneurs. Understanding how to choose a qualified Intermediary is critical to a successful exit. At Springfield Strategies, we leverage our years of experience with confidential business sales to gather data on current market trends and analyze your key value drivers to get the maximum selling price for your business. From exit planning to the closing table, we have the expertise to guide you to a successful transaction. Our motto is Plan. Execute. Exit
Middlesex County, MA
Not Disclosed
EBITDA: $561,523
Nassau County, NY
$270,000
Charlotte, NC
$350,000
Riverside County, CA
$245,000
Michigan
$550,000
Franklin County, OH
$995,000
North Carolina
$1,200,000
Los Angeles, CA
$189,000
Evans, GA
$350,000
San Bernardino County, CA
$180,000
Los Angeles, CA
$650,000
Wilmington, NC
$469,999
Fort Pierce, FL
$286,000
Pima County, AZ
$97,000
Baltimore, MD
$450,000
Marietta, GA
Not Disclosed
Cash Flow: $200,000
Suwanee, GA
$80,000
Eagle County, CO
$250,000
Los Angeles, CA
$350,000
Chesterfield County, VA
$100,000
Vero Beach, FL
$198,000
Louisville, KY
$649,000
Deschutes County, OR
$3,500,000
Cook County, IL
$550,000
Groveland, FL
$65,000
Bellmore, NY
$137,000
Plano, TX
$674,999
San Antonio, TX
$400,000
Amy Rio
Executive Real Estate
Serving Hartford County, CT
Experienced commercial group, specializing in restaurant sales, working throughout the state of Connecticut and beyond.
Albany County, NY
$255,000
Saskatchewan, SK
$1,350,000
Will County, IL
$1,300,000
Westbury, NY
$370,000
Phoenix, NV
$299,900
Saint Paul, MN
$299,899
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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