Evansville, IN
$35,000
Evansville, IN
$35,000
Valparaiso, IN
$26,000
Terre Haute, IN
$19,500
South Bend, IN
$28,000
Peoria, IL
$18,500
Springfield, IL
$29,000
Dubuque, IA
$24,500
Iowa City, IA
$19,500
Saint Louis, MO
$6,466,000
Bucks County, PA
$350,000
Raleigh, NC
$17,499
Indianapolis, IN
$238,999
Ingham County, MI
$345,000
Newhall, CA
$100,000
Hartford, CT
$334,900
Memphis, KY
$208,900
Wasim Rahman
TNW BUSINESS BROKERS
Serving San Francisco County, CA
TNW Business Brokerage has been in the business since 2003 and committed to work diligently with every client as an advocate provide a comprehensive consultative approach to each and every business transaction.
Phoenix, AZ
$95,000
Lehigh County, PA
$35,000
Boston, MA
$199,500
Saint Louis, MO
$399,900
Fort Wayne, OK
$257,900
Gwinnett County, GA
$1,900,000
Dallas County, TX
$1,750,000
Florida
$1,899,999
Wappingers Falls, NY
$295,000
REAL ESTATE INCLUDED
Warner Robins, GA
$650,000
Harrisburg, PA
$139,990
Gretna, LA
$125,000
Saint Louis, MO
$475,000
Scottsdale, AZ
$700,000
Neosho County, KS
$350,000
Hartford, CT
$17,499
Greensboro, NC
$17,500
Detroit, MI
$239,000
Daytona Beach, FL
$389,000
REAL ESTATE INCLUDED
Alabama
Not Disclosed
Cash Flow: $658,000
Macon Brm, GA
$238,999
New Haven County, CT
$895,000
Los Angeles, CA
$598,000
Dallas, TX
$250,000
Raleigh, NC
$139,990
Fairfield County, CT
$995,000
Orlando, FL
$139,999
Encino, CA
$99,000
Eric Sutton
Sterling Growth Partners
Serving Broward County, FL
Sterling Growth Partners brings world-class inorganic growth, business succession advisory services to small business owners across the United States.
Florida
$406,000
Atlanta, GA
$100,000
Arlington Heights, IL
$145,000
Salt Lake City, UT
$40,700
Atlanta, GA
$2,800,000
Evergreen Park, IL
$165,000
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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