South San Francisco, CA
$1,179,000

South San Francisco, CA
$1,179,000

Sacramento, CA
$1,750,000

Watsonville, CA
$695,000

California
$894,000
Ventura, CA
$405,500
Fullerton, CA
$525,000
Placer County, CA
$185,000
Temple City, CA
$235,000
Ventura County, CA
$1,200,000
Castroville, CA
$125,000
Available in California
$200,000
Orange, CA
$150,000
Murrieta, CA
$100,000
$95,000
Alameda County, CA
Santa Fe Springs, CA
$185,000
San Francisco, CA
$65,000
R. Everett Roff
California Business Exchange
Serving San Diego County, CA
California
$650,000
California
$650,000
Menlo Park, CA
$675,000
San Diego County, CA
$625,000
San Diego County, CA
$179,000
Available Nationwide
$150,000
Los Angeles, CA
$695,000
Pasadena, CA
$275,000
$3,160,000
Redding, CA
San Diego County, CA
$405,000
San Diego, CA
$395,000
Oceanside, CA
$59,000
San Diego County, CA
$56,250
Riverside County, CA
$13,000
Roseville, CA
$185,000
Arcadia, CA
$795,000
Available in California
$70,000
Riverside County, CA
$85,000
Morro Bay, CA
$895,000
$100,000
Los Angeles, CA
Sacramento County, CA
$98,400
Los Angeles County, CA
$495,000
Available Nationwide
$125,000
Carlsbad, CA
$380,000
San Diego, CA
$35,000
California
$700,000
Yolo County, CA
$325,000
REAL ESTATE INCLUDED
Burney, CA
$350,000
Tommy Taylor
Executive Realty Group
Serving Riverside County, CA
Morro Bay, CA
Not Disclosed
Cash Flow: $500,000
Santa Ana, CA
$130,000
$200,000
San Francisco, CA
Oakland, CA
$135,000
Sonoma County, CA
$1,300,000
Available Nationwide
$25,000
Long Beach, CA
$125,000
Orange County, CA
$2,895,000
Sacramento County, CA
$300,000
Los Angeles County, CA
$1,152,000
San Diego, CA
$99,000
Santa Barbara County, CA
$1,100,000
Hayward, CA
$925,000
Ventura County, CA
$95,000
Palm Springs, CA
$699,000
Available in California
$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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