Fresno, CA
$125,000
Fresno, CA
$125,000
California
$265,000
Santa Clara County, CA
$695,000
Los Angeles, CA
$180,000
Beverly Hills, CA
$150,000
Lancaster, CA
$35,000
Thousand Oaks, CA
$190,000
Highland Park, CA
$115,000
Orange County, CA
$59,000
Orange County, CA
$60,000
Available in California
$75,000
Santa Clara, CA
$175,000
Chino, CA
$195,000
California
$7,543,000
San Francisco, CA
Phelan, CA
$649,000
SEAN LINCH
Paragon Acquisitions International
Serving San Diego County, CA
As a forward-thinking Business Brokerage headquartered in California, Paragon Business Brokers distinguishes itself through a depth of knowledge, astute insights, and a commitment to fostering successful transactions. https://www.paragonacquisitionsintl.com Our specialization is centered around CONFIDENTIAL BUSINESS SALES and MERGERS & ACQUISITIONS, both within the United States and across international markets. This focused approach equips our brokers with a nuanced understanding of the prevailing market dynamics, empowering them to provide tailored solutions that address the unique needs of sellers and buyers. At Paragon, we serve as a comprehensive resource for all your brokerage needs, providing you with the guidance and support essential for navigating the intricacies of the transaction process. Our team is comprised of dedicated professionals, each a full-time Business Broker or Agent with a wealth of expertise in the realm of CONFIDENTIAL BUSINESS SALES and MERGERS & ACQUISITIONS. Collaborating with a Paragon Broker means engaging with a seasoned professional who is well-versed in the nuances of both selling and buying procedures. Your journey with us is marked by a commitment to your objectives and a steadfast dedication to achieving a successful outcome. Choose Paragon for a partnership rooted in knowledge, integrity, and a genuine commitment to your success.
Murrieta, CA
$11,500,000
Moss Landing, CA
Los Angeles, CA
$950,000
Sonora, CA
$4,250,000
Available Nationwide
$50,000
Los Angeles, CA
$2,980,000
Orange, CA
$649,000
Orange, CA
$180,000
Modesto, CA
$1,300,000
Los Angeles, CA
$2,950,000
Compton, CA
$3,000,000
Upper Lake, CA
$520,000
Available Nationwide
$75,000
For those in the market to buy or sell a service business in California, 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 California service businesses.
Market Overview
Number of Businesses Analyzed |
423 |
Median Asking Price |
$322,500 |
Median Reported Revenue |
$400,000 |
Median Reported Earnings |
$136,896 |
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. |
California Service Business Valuation Multiples
Range |
Revenue |
Earnings (SDE) |
Lower Quartile |
0.52 |
1.76 |
Median |
0.80 |
2.58 |
Upper Quartile |
1.18 |
3.47 |
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. |
Read the Report:
Service Business Valuation Multiples & Financial Benchmarks
FAQs
How much does it cost to buy a service business in California?
Prices vary depending on sales volume and financial performance, but the median asking price for a service business in California is approximately $322,500.
How much do service business owners earn?
These businesses vary in sales volume, but California service business owners report median annual sales of $400,000 and annual owner earnings of $136,896. 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 in California range from 0.52 to 1.18, with the median at 0.80. Earnings multiples range from 1.76 to 3.47, with the median at 2.58. These values indicate that a typical service business in California may sell for around 0.80 times its annual revenue, and 2.58 times its annual owner’s earnings.
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