Denver County, CO
$3,000,000
Denver County, CO
$3,000,000
Silver Spring, MD
$450,000
Benton County, IA
$1,399,000
Cherry Hill, NJ
$400,000
Orlando, FL
$275,000
Queens, NY
$1,200,000
Phoenix, AZ
$99,000
Ohio
$65,000
Miami-Dade County, FL
$325,000
Las Vegas, NV
$600,000
Rochester, NY
$49,000
Austin, TX
$300,000
Dallas, TX
$650,000
Roseville, CA
$199,000
Martin County, FL
$280,000
Frederick, MD
$425,000
East Coast Business Brokers LLC
East Coast Business Brokers
Serving New York County, NY
631-271-1731
Fort Lauderdale, FL
$42,000
Dallas, TX
$109,000
Brooklyn, NY
$699,999
Indianapolis, IN
$145,000
New York County, NY
$2,450,000
Antioch, TN
$99,000
Myrtle Beach, SC
$1,500,000
Cincinnati, OH
$162,500
Austell, GA
$425,000
Louisiana
$1,500,000
St. Johns County, FL
$190,000
Mclean County, IL
$2,950,000
Henderson, NV
$60,000
Dallas, TX
$45,000
Los Angeles County, CA
$299,000
Phoenix, AZ
$600,000
Louisiana
$98,000
West Virginia
$650,000
Woodstock, GA
$150,000
Illinois
Little Rock, AR
$230,225
Stamford, CT
$230,225
Suffolk County, NY
$399,999
Kings County, NY
$1,300,000
Houston, TX
$329,000
Cuyahoga County, OH
$135,000
Fort Myers, FL
$390,000
John Kelly
Kelly Business Advisors, LLC.
Serving Brown County, WI
Kelly Business Advisors is your resource for selling or buying a business and for consulting business owners on building value in their business. Kelly Business Advisors can help you, the business owner, accomplish any of these five objectives: 1) Sell your business 2) Buy a business 3) Estimate the value of your business 4) Assess your business and help you plan for your future 5) Strengthen your board of directors If you think that it may be time to sell your business or buy a business within the next few years, we recommend you contact Kelly Business Advisors for an initial consultation.
Passaic County, NJ
$499,000
Spanish Fork, UT
$34,995
North Carolina
$2,000,000
Canton, GA
$200,000
Jacksonville, WI
$215,000
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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