Orange County, CA
$1,300,000
Orange County, CA
$1,300,000
Riverside County, CA
$13,000
Los Angeles, CA
$320,000
Santa Clara County, CA
$285,000
Inglewood, CA
$375,000
Carmichael, CA
$791,500
Oakland, CA
$139,000
San Diego County, CA
$1,425,000
San Diego, CA
$250,000
San Francisco, CA
$170,000
Available Nationwide
$100,000
Sonoma County, CA
$699,000
California
Cash Flow: $475,000
$120,000
Desert Hot Springs, CA
California
$657,000
Oceanside, CA
$2,300,000
Greg Michail, CBB
Sunbelt Business Brokers of Pasadena
Serving Los Angeles County, CA
Sunbelt Business Brokers of Pasadena (SBBP) is a Southern California based firm specializing in business mergers, acquisitions, and valuations. It is part of the worldwide Sunbelt Network of over 300 offices. Sunbelt specializes in small and medium size privately held companies with a particular emphasis on manufacturing, distribution and select business-to-business service industries. Sunbelt is dedicated to providing clients with confidential and professional representation and assisting them in achieving their business objective. For more information, log on www.sunbeltpasadena.com.
Albany, CA
$189,000
Los Angeles County, CA
$215,000
Calaveras County, CA
$195,000
Alameda County, CA
$295,000
San Diego County, CA
$150,000
Available in California
$150,000
Los Angeles County, CA
$189,000
Monterey County, CA
$395,000
Santa Clara, CA
$6,695,000
Los Angeles, CA
$179,000
Newport Beach, CA
$450,000
Pomona, CA
$247,000
Sacramento, CA
$250,000
Rancho Cucamonga, CA
$480,000
Irvine, CA
$75,000
Available Nationwide
$50,000
Palmdale, CA
$155,000
Los Angeles, CA
$220,000
Los Angeles County, CA
$420,000
Alameda County, CA
$800,000
Available in California
$50,000
Contra Costa County, CA
$250,000
Fremont, CA
$115,000
New Orleans, CA
$400,000
La Mirada, CA
$85,000
Los Angeles County, CA
$4,300,000
Los Angeles, CA
$2,400,000
California
Cash Flow: $349,000
Terri Delhamer
GRE Land and Commercial Real Estate
Serving Riverside County, CA
GRE Commercial Real Estate has over 35 years experience representing buyer and sellers in business and real estate transactions. The principals at GRE also have extensive backgrounds in law, accounting and land development. Terri Delhamer has developed a successful niche listing and selling specialty properties and businesses including wineries, vineyards, and restaurants.
San Jose, CA
$555,000
Chatsworth, CA
$349,000
Available in California
$200,000
San Diego, CA
$480,000
California
Cash Flow: $176,000
Sacramento, CA
$900,000
Alameda County, CA
$106,000
Brooklyn, CA
$525,000
Los Angeles County, CA
$40,000
Los Angeles County, CA
$120,000
Los Angeles County, CA
$70,000
Escondido, CA
$170,000
Available Nationwide
$50,000
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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