Massachusetts
$1,400,000
Massachusetts
$1,400,000
Abilene, TX
$60,000
Mount Pleasant, SC
$374,969
Suwanee, GA
$43,000
Boston, MA
$600,000
Charlotte Court House, VA
$590,000
Nashville, TN
$149,000
Memphis, TN
$249,000
Lehigh Valley, PA
$965,000
Maricopa County, AZ
$1,100,000
Sacramento, CA
$340,000
Detroit, MI
$249,000
Philadelphia, PA
$259,900
$1,600,000
Carmel-By-The-Sea, CA
Hawaii
$275,000
Spokane Valley, WA
$250,000
Matt Valantine
Valantine Ventures
Serving Franklin County, OH
we SHOW UP, FULLY Present & Intentionally Disruptive & move ALL-IN for our clients, partners & teammates...to CONNECT professional dots, CLOSE the deals, & CREATE a better business community...so we can CELEBRATE together.
Washington, DC
$315,000
Nolensville, TN
$75,000
Columbia County, GA
$318,000
Harris County, TX
$73,200
Maricopa County, AZ
$88,800
$75,000
Tampa, FL
$210,000
Hewitt, TX
$125,000
$700,000
Lake County, OH
Flemington, NJ
$145,000
Atlanta, GA
$250,000
Riverside, CA
$250,000
Tallahassee, FL
$95,000
Jackson, MS
$90,000
REAL ESTATE INCLUDED
Florida
$1,723,000
Oklahoma City, OK
$100,000
Corpus Christi, TX
$95,000
Worcester, MA
$99,000
Memphis, TN
$259,900
$550,000
Indiana
Erath County, TX
$1,845,000
Wood County, WI
$1,245,000
Volusia County, FL
$495,000
Des Moines, IA
$399,900
Brooklyn, NY
$145,000
Rialto, CA
$1,600,000
Arkansas
$199,000
Fairfax, VA
$299,900
Raj Whadwa
Global Realty Services USA
Serving Suffolk County, NY
Global Realty Services USA is a national commercial real estate firm delivering exceptional value for real estate occupiers, owners, and investors. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors. Over the years, we have been fortunate to collaborate with some excellent clients on some amazing projects and are proud of what we have accomplished in a such a short time.
Houston, TX
$150,000
Houston, LA
$140,000
$4,600,000
Oregon
Wayne County, MI
$164,900
Pittsburgh, PA
$490,000
Rockland County, NY
$200,000
Philadelphia, PA
$121,900
Middletown, NJ
$299,000
REAL ESTATE INCLUDED
New York
$2,500,000
King County, WA
$3,400,000
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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