Oregon
$270,000
Oregon
$270,000
South Carolina
$1,210,000
Thurston County, WA
$135,000
Conway, AR
$310,000
Oklahoma City, OK
$205,000
Pinellas County, FL
$170,000
Phoenix, AZ
$450,000
Atlanta, GA
$20,000
Las Vegas, NV
$640,000
Phoenix, AZ
$65,000
Barrie, Simcoe County, Muskoka, ON
$65,000
Texas
$5,500,000
Los Angeles, CA
$1,655,000
Tarrant County, TX
$400,000
$3,950,000
Scott Kranz
First Choice Business Brokers
Serving Minnehaha County, SD
First Choice Business Brokers is one of the largest business sales organizations and has reached over $8 billion dollars of business transactions. We are the premier business brokerage in the industry for buyers and sellers. We list businesses on several national websites as well as micro sites, and work diligently to secure the most value for a business.
Port Saint Lucie, FL
$70,500
District of Columbia, DC
$750,000
Houston, TX
$379,000
Elizabethport, NJ
$399,000
Michigan
$2,000,000
REAL ESTATE INCLUDED
Cocoa, FL
$1,500,000
Cape Coral, FL
$370,000
Phoenix, AZ
$95,000
Washington, DC
$1,989,000
Norfolk County, MA
Not Disclosed
Cash Flow: $90,000
Brooklyn, NY
$825,000
Las Vegas, TN
$599,990
Newark, NJ
$175,000
Washington
$1,400,000
Montgomery County, MD
$279,000
St. Charles County, MO
$695,000
$825,000
Bradenton, FL
$599,895
Tampa, FL
$895,000
Not Disclosed
Cash Flow: $270,000
Orange County, CA
$148,800
Stanislaus County, CA
$600,000
Arlington, VA
$196,990
Saint Paul, MN
$204,989
Vancouver, BC
$65,000
Dallas, TX
$65,000
Eboni Johnson
EQUITY BUSINESS BROKERS
Serving Cobb County, GA
Danbury, CT
$325,000
Florida
$12,500,000
Dallas, TX
$180,000
Great Neck, NY
$395,000
Kansas
$180,000
San Diego, CA
$35,000
Waldo County, ME
$1,750,000
Westchester, NY
$395,000
Arizona
$150,000
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:
Set Up Alerts and Notifications
Business Buyer Learning Center
More for Business Sellers: