Dallas, TX
$445,000
Dallas, TX
$445,000
Las Vegas, NV
$800,000
Sarasota, FL
$189,000
Jacksonville, FL
$225,000
Kansas City, MO
$315,000
San Diego County, CA
$189,000
Indianapolis, IN
$325,000
Sarasota, FL
$126,000
Pinellas County, FL
$100,000
Las Vegas, NV
$800,000
Bronx County, NY
$1,500,000
Rocklin, CA
$200,000
Passaic, NJ
$280,000
$75,000
Chicago Heights, IL
Santa Clara County, CA
$296,000
Hayden, ID
$525,000
Christopher George, CBOA
George & Company/CentralBrokers
Serving Worcester County, MA
New England Business Brokers Association, Past President M&A Source - IBBA Merger & Acquisition division International Business Brokers Association Life Member, Institute of Business Appraisers, Inc. #2652-01 American Society of Appraisers #003991 Mass. Division of Registration, Real Estate Brokers #9011538 Turnaround Management Association Mass. Restaurant and Package Store Associations Association of Professional Merger & Acquisition Advisers Contributing Intermediary, BIZ COMPS©, annual business sales statistics Hall of Fame, Pratt’s Stats® sold business data base
Montgomery County, PA
$300,000
$2,400,000
Indianapolis, IN
$126,750
Atlanta, GA
$360,000
Fairfield County, CT
$425,000
Texas
$2,000,000
Suffolk County, NY
$1,100,000
Marietta, GA
$194,000
$2,500,000
San Diego County, CA
Rockland County, NY
$1,100,000
Tampa, FL
$800,000
Madison, WI
$198,900
Orange County, CA
$69,500
REAL ESTATE INCLUDED
Round Lake, IL
$595,000
Hyde Park, MA
$409,000
Pasadena, CA
$50,000
Broward County, FL
$17,000,000
Nashville, TN
$199,999
Sugar Land, TX
$300,000
$40,000
New York, NY
Houston, TX
$200,000
California
$475,000
REAL ESTATE INCLUDED
Killeen, TX
$699,999
Brunswick County, NC
$500,000
Centennial, CO
$250,000
Houston, TX
$400,000
San Antonio, TX
$167,000
Chicago, IL
$170,000
Tim Ceman
Drifka Group
Serving Outagamie County, WI
Orange County, FL
$300,000
Omaha, NE
$160,000
$177,000
Boston, MA
Orange County, CA
$435,000
Ridgefield, OK
$170,000
Savannah, GA
$169,000
Albuquerque, NM
$155,000
Boulder, CO
$159,000
$1,700,000
South Bend, IN
$55,000
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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