Quebec
$105,000
Quebec
$105,000
California
$75,000,000
Mississauga, ON
$649,000
Monmouth County, NJ
$99,000
Charleston County, SC
$120,000
Hillsborough County, FL
$110,000
Arizona
$3,000,000
Suffolk County, NY
$650,000
Oklahoma City, OK
$870,000
Nassau County, NY
$205,000
Fort Worth, TX
$1,150,000
Bucks County, PA
$220,000
Iowa
$300,000
Michigan
$350,000
Charlotte, NC
$199,000
Marvin Slovacek
Murphy Business & Financial Corporation
Serving Salt Lake County, UT
I am the Regional Director for the state of Utah and a Certified Merger & Acquisition Intermediary.
Plymouth, MA
$339,000
Huntsville, AL
$349,500
Spring, TX
$520,000
Orange County, FL
$3,645,000
Anchorage County, AK
$3,185,000
South Carolina
$240,000
Lucas County, OH
$700,000
$150,000
Escondido, CA
$70,000
Acworth, GA
$700,000
Columbia, SC
$17,500
San Francisco, TN
$199,900
Indianapolis, IN
$204,989
Montgomery, AL
$204,990
Seattle, TN
$525,000
Louisville, NY
$434,999
Los Angeles County, CA
$250,000
Oklahoma City, OK
$197,900
Pinellas County, FL
$150,000
Jacksonville, FL
$565,000
Columbus, OH
$198,900
Shoreline, WA
$275,000
Atlanta, GA
$678,503
Birmingham, AL
$678,503
Wilmington, NC
$545,000
Bryan, TX
$336,000
Laurie Dubow
Signature Commercial Real Estate
Serving Palm Beach County, FL
Your Commercial and Residential Real Estate Concierge
Cobb County, GA
$450,000
California
$399,000
San Antonio, TX
$98,000
Vero Beach, FL
$82,320
Memphis, TN
$94,000
Mobile, AL
$94,000
Denver, CO
$650,000
Kent County, MI
$444,000
Georgia
$1,650,000
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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