Minnesota
$3,900,000
Minnesota
$3,900,000
The Villages, FL
$141,600
Pompano Beach, FL
$197,000
Massachusetts
$600,000
Fairfax County, VA
$735,000
Elkhart, IN
$21,000
REAL ESTATE INCLUDED
Pennsylvania
Not Disclosed
Cash Flow: $880,000
Fayetteville, NC
$225,000
Columbus, OH
$50,000
Grapevine, TX
$200,000
San Antonio, TX
$204,999
Madison, WI
$99,999
Camden County, NJ
$210,000
Robertson County, TN
$619,000
Not Disclosed
EBITDA: $285,000
Suffolk County, NY
$149,900
Matt Manavi, MBA, CBB, CBI, CM&AP, M&AMI
California Mergers and Acquisitions
Serving Orange County, CA
Transworld Business Advisors is a world leader in the marketing and sale of businesses, franchises, and commercial real estate. Transworld offers professional services that brings buyers and sellers together whether you represent an acquisition minded corporation or are personally interested in owning your own company. We serve all business owners in Southern CA with offices in San Berbardino County, Orange County, and San Diego County.
Maryland
$850,000
REAL ESTATE INCLUDED
Ohio
$1,350,000
Varnville, SC
$275,000
Minnesota
$400,000
Lee County, FL
$1,900,000
Dekalb County, IN
$179,900
Bradenton, FL
$390,000
Fort Myers, FL
$38,000
Virginia
$4,300,000
Jamaica, NY
$455,000
Dallas, TX
$3,400,000
Litchfield County, CT
$25,000
Gta, ON
$2,700,000
Long Beach, CA
$1,200,000
Contra Costa County, CA
$2,900,000
Texas
$1,400,000
Toronto, ON
$50,000
Seattle, WA
$75,000
Wilmington, DE
$750,000
Chattanooga, TN
$75,000
Macomb County, MI
$399,000
Collin County, TX
$75,000
Dallas County, TX
$8,000,000
California
$700,000
Boulder, CO
$315,000
Iowa
$650,000
Denver, CO
$480,000
California
$1,600,000
Situ Millawabandara
EXP Commercial of California Inc.
Serving Sacramento County, CA
Layton, UT
$1,195,000
Seattle, WA
$469,000
Salt Lake City, UT
$105,000
Livermore, CA
$349,000
Franklin County, OH
$499,000
Blue Ash, OH
$475,000
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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