San Bernardino County, CA
$2,200,000
San Bernardino County, CA
$2,200,000
Kauai County, HI
$160,000
Cleveland, OH
$170,000
Nassau County, NY
$150,000
Saint Louis, MO
$160,000
Levittown, NY
$250,000
Destin, FL
$750,000
Louisiana
Rapid City, SD
$125,000
Wesley Chapel, FL
$100,000
Saint Louis, MO
$225,000
Clearwater, FL
$350,000
Galveston County, TX
$207,600
Missouri
$495,000
Shelby County, TN
$299,000
Palm Beach County, FL
$636,000
Elad Dror
PD Properties, LLC
Serving New York County, NY
Fort Bend County, TX
$56,400
Saint Augustine, FL
$308,000
Worcester County, MA
$995,000
Summit County, OH
$55,000
Texas
$195,000
Manatee County, FL
$153,720
Harris County, TX
$650,000
California
$1,150,000
Kentucky
$700,000
Florida
$697,355
Ontario
$700,000
Lee's Summit, MO
$4,700,000
Tyler, TX
$215,000
Atlanta, GA
$259,000
Laytown, NC
$425,000
Greensboro, NC
$299,900
Ann Arbor, MO
$120,000
Austin, CO
$405,000
Colorado
Cash Flow: $1,274,070
Lane County, OR
$369,000
Cripple Creek, CO
$3,950,000
Austin, TX
$1,400,000
REAL ESTATE INCLUDED
Lake County, FL
$1,895,000
Sanibel, FL
$1,300,000
Jacksonville, FL
$150,000
White Bear Lake, MN
$150,000
Mclennan County, TX
$125,000
Cabarrus County, NC
$300,000
Mark Daoust
Quiet Light Brokerage, Inc.
Serving Dakota County, MN
Lakeland, FL
$530,000
Middlesex County, NJ
$120,000
Louisville, KY
$750,000
Sugar Land, TX
$134,500
North Carolina
$1,150,000
Lenexa, KS
$450,000
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.
More for Business Buyers:
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