Miami-Dade County, FL
$349,000
Miami-Dade County, FL
$349,000
King County, WA
$155,000
Honolulu, HI
Not Disclosed
Cash Flow: $1,350,000
Jackson Heights, NY
$299,000
Fayetteville, AR
$143,900
Los Angeles County, CA
$2,000,000
New Castle County, DE
$200,000
Glendora, CA
$375,000
Cape Coral, FL
$165,000
REAL ESTATE INCLUDED
Tennessee
$700,000
Maricopa County, AZ
$850,000
REAL ESTATE INCLUDED
Murfreesboro, TN
$2,300,000
Saint Louis, MO
$1,200,000
Deer Park, WA
$85,000
Maricopa County, AZ
$645,000
Portland, OR
$250,000
Rodney R. Wolfe, CMA, CCIM, CMAI, BCI
Murphy Business & Financial Corporation
Serving Ada County, ID
Murphy Business is one of the largest and most successful business brokers in North America with offices conveniently located throughout the United States and Canada. Choosing to partner with a national business broker provides an advantageous reach of over one hundred and eighty offices that have affiliations with National and International Business Brokerage and Merger & Acquisition associations. Murphy Business Brokers provide the following unsurpassed services: Skilled intermediaries offer assistance in Mergers and Acquisitions Assisting individuals/companies to Buy the most suitable Business Offering Business Valuation Reports and Appraisal Reports Giving accurate Equipment Appraisals Selling a Business without disclosing its identity Experienced Commercial Real Estate Brokers aid in site selection
Cincinnati, OH
$335,000
Maricopa County, AZ
$25,000
Bridgeville, PA
$159,900
San Diego, CA
$85,000
Tennessee
$10,000,000
Carlsbad, CA
$199,000
Arizona
Not Disclosed
Cash Flow: $239,000
REAL ESTATE INCLUDED
Louisville, KY
$440,000
Oklahoma City, AR
$498,999
Palm Beach County, FL
$1,080,000
Monmouth County, NJ
$600,000
McHenry County, IL
$1,350,000
Henry County, MO
$525,000
Not Disclosed
EBITDA: $572,000
Berkeley County, SC
$200,000
Missouri
Not Disclosed
EBITDA: $10
Not Disclosed
Cash Flow: $555,000
Not Disclosed
EBITDA: $1,245,400
REAL ESTATE INCLUDED
Harris County, TX
$1,590,000
Saint Louis, MO
$550,000
Providence County, RI
$125,000
Brentwood, TN
$14,900,000
Atlantic Highlands, NJ
$175,000
Brooklyn, NY
$1,599,000
Ohio
$154,000
Louisiana
$295,000
South Carolina
$215,000
Alabama
$1,400,000
Dehlan Group
Dehlan Group
Serving Fresno County, CA
Dehlan Group, selling California one business at a time.
Charleston, SC
$550,000
Greensboro, NC
$498,999
Ventura, CA
$1,000,000
Florida
$795,000
Fort Lauderdale, FL
$91,440
Palm Beach County, FL
$120,000
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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