Massachusetts
$327,000
Massachusetts
$327,000
Delaware
$1,300,000
Grimes, IA
$465,000
Minnesota
$224,900
Trenton, NJ
$99,000
Los Angeles, CA
$325,000
Sarasota County, FL
$150,000
Houston, TX
$380,000
Charlotte County, FL
$1,100,000
Orlando, FL
$69,000
Palm Beach County, FL
$35,880
Carmel, IN
$85,000
Boca Raton, FL
$361,000
Palmetto, FL
$129,000
Sacramento County, CA
$97,200
Oakbrook Terrace, IL
$375,000
Ron Cervelli
Regal Consulting Corp.
Serving Middlesex County, NJ
Thirty+ years of experience in the Business Brokerage Industry servicing New Jersey, New York, Pennsylvania and the Tri State Area.
Columbia, SC
$150,000
Nashville, TN
$295,000
Lexington, KY
$275,000
Springfield, MA
$265,000
Hartford County, CT
$148,000
Jackson County, MO
$1,400,000
San Francisco County, CA
$176,000
Minnesota
$759,000
Chaffee County, CO
$1,075,000
Houston, TX
$195,000
Potsdam, NY
$426,000
Norfolk County, MA
$29,000
Norfolk County, MA
$80,425
Charles County, MD
$269,000
Chattanooga, TN
$227,900
Roseville, CA
$529,000
Fort Wayne, IN
$679,825
Seattle, WA
$290,000
Chesapeake, VA
$250,000
Snohomish County, WA
$1,750,000
Albany, NY
$295,000
Lycoming County, PA
$250,000
Florida
$625,000
Cumberland County, ME
$155,000
Wilmington, KY
$109,500
Yardley, PA
$150,000
Duval County, FL
$740,000
Tarrant County, TX
$1,800,000
Lee Trammell
Drake Business Services
Serving Smith County, TX
It is impossible to be an expert at all different types of investments, much less have an effective marketing campaign, be “in the know,” and maintain a database of contacts across all asset classes. Drake takes a different approach when it comes to brokering business and real estate opportunities. At Drake, we break each type of investment into vertical markets, and carefully select a team member to be an expert in each market. Each agent is then able to spend 100% of their time every day on the daily activities in their area of expertise. This allows our agents to have a distinct advantage over our competitors who are distracted from their core business. As a result, our agents have a better understanding of market demand, marketing time, pricing, availability, marketing strategies, and client needs. Our structure also fosters an environment of sharing and creativity that gives the client the best experience possible.
Centre County, PA
$260,000
San Diego County, CA
$979,723
Murrieta, CA
$180,000
Riverside County, CA
$549,500
Broward County, FL
$275,000
Clayton County, GA
$890,000
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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