Moore County, NC
$183,999
Moore County, NC
$183,999
Kings County, NY
$200,000
Fairfax, VA
$275,000
REAL ESTATE INCLUDED
Solano County, CA
$2,650,000
Minnesota
$1,490,000
Honolulu County, HI
$515,000
Mesa, AZ
$230,000
Santa Rosa, CA
$495,000
San Antonio, TX
$3,300,000
$900,000
Florida
$10,800,000
Pittsburgh, PA
$575,000
Louisville, TN
$750,000
New York, NY
$599,000
Lawrenceville, GA
$99,000
Bothell, WA
$151,000
Scott Kranz
First Choice Business Brokers
Serving Carroll County, IA
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.
Bucks County, PA
$800,000
Michigan
Not Disclosed
Cash Flow: $1,001,872
Middlesex County, MA
$350,000
REAL ESTATE INCLUDED
Phillips, WI
$699,000
Redding, CA
$179,500
Pinellas County, FL
$90,360
Elk Grove, CA
$2,000,000
Bexar County, TX
$73,200
Charlotte County, FL
$360,000
Florida
$20,000,000
Pasco, WA
$68,000
Osceola County, FL
$13,499,999
Runnemede, NJ
$350,000
Bensalem, PA
$200,000
Delaware
$810,000
Rogers, MN
$40,000
Kentucky
$1,195,000
Washington County, MN
$425,000
Montgomery, AL
$450,000
Southlake, TX
$275,000
Boca Raton, FL
$70,000
Tucson, AZ
$1,200,000
Kissimmee, FL
$120,000
Columbus, GA
$24,900
REAL ESTATE INCLUDED
Floyd County, GA
$3,800,000
REAL ESTATE INCLUDED
Corpus Christi, TX
$2,980,000
Bronx, NY
$1,400,000
REAL ESTATE INCLUDED
New York, NY
$18,200,000
Laurie Dubow
Signature Commercial Real Estate
Serving Palm Beach County, FL
Your Commercial and Residential Real Estate Concierge
Shepherdsville, KY
$300,000
Palmdale, CA
$150,000
Windham County, VT
$730,000
Spotsylvania County, VA
$125,000
Ventura County, CA
$62,400
Orlando, FL
$40,000
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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