Stamford, CT
$350,000
Stamford, CT
$350,000
Cash Flow: $469,000
Washington County, PA
$120,000
Akron, OH
$479,000
Benton County, WA
$850,000
Orlando, FL
$725,000
New York County, NY
$4,999,999
Cheyenne, WY
$500,000
Cheyenne, WY
$500,000
Los Angeles County, CA
$732,000
Middlesex County, MA
$200,000
New Bern, NC
$325,000
Newport News County, VA
$180,000
Los Angeles, CA
$550,000
Columbia, SC
$975,000
Houston, TX
$64,900
Jennifer Smith Broeckling, MBA, BCI, CMAI
Murphy Business Sales
Serving Cape Girardeau County, MO
Most people don't know where to begin when it comes to buying or selling a business. We guide clients through the complicated process so they get to the closing table successfully. Our mission: To be an ethical business brokerage firm that sets buyers, sellers, and their businesses up for success in the next chapter of their lives. Our core values: 1. Integrity 2. Honesty 3. Learning 4. Accuracy 5. Adaptability Our vision: We are known as one of the most ethical, capable, and skilled business brokerage groups in the country who truly care about people and their deals.
Salt Lake County, UT
$1,750,000
Bristol County, MA
$350,000
Brownsville, TX
$425,000
Kansas City, MO
$79,900
San Bernardino County, CA
$3,600,000
Omaha, NE
$985,000
Dallas, TX
$1,800,000
Mesa, AZ
$134,000
West Palm Beach, FL
$495,000
Rochester, NY
$61,900
West Hollywood, CA
$330,000
$4,060,000
Suffolk County, MA
$400,000
San Francisco County, CA
$145,000
$3,000,000
Sarasota County, FL
$395,000
Indiana
$221,000
Massachusetts
$466,000
Kansas
$332,000
Sarasota County, FL
$60,000
Missouri
$540,000
Lexington, FL
$210,000
Kentucky
$311,000
Ohio
$806,000
Ohio
$586,000
New Hampshire
$115,000
Illinois
$330,000
Kentucky
$197,000
Matthew Porter
Mountain West
Serving Salt Lake County, UT
Mountain West Commercial Real Estate was founded in 2009 by a group of regionally dominant brokers. This unique assembly of talent had a simple mission statement then and now: To operate a commercial real estate brokerage not focused on being the biggest, but being the best. This simple core value resonates even stronger today as we are fiercely dedicated to providing superior service to our clients throughout the United States. We believe that we are uniquely adapted to help our clients.
Missouri
$195,000
Massachusetts
$610,000
Vermont
$710,000
New Hampshire
$145,000
Alabama
$110,000
Charleston County, SC
$895,000
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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Business Buyer Learning Center
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