Montgomery County, TX
$1,200,000
Montgomery County, TX
$1,200,000
Polk County, IA
$399,900
Newark, CA
$893,000
Montville, CT
$175,000
San Diego County, CA
$800,000
Austin, TX
$250,000
York County, PA
$330,000
Yamhill County, OR
$160,000
Larimer County, CO
$200,000
Silver Spring, MD
$450,000
Benton County, IA
$1,399,000
Cherry Hill, NJ
$400,000
Orlando, FL
$275,000
Queens, NY
$1,200,000
Phoenix, AZ
$99,000
Ohio
$65,000
Jack Oh
Power Realty & Investments
Serving Orange County, CA
Seller Services: Power Realty & Investments provides sellers with comprehensive representation guiding them through each step of the sale process. We develop individualized exit strategy and work closely with each seller to maximize their return. Buyer Services: Power Realty & Investments represents a wide range of business opportunities including franchise, restaurants, liquor stores, medical practice, dry cleaners and other local family businesses in transactions that are both large and small. Valuations Determining the Fair Market Value of a business is not an exact science. Business Value is determined by the interaction of market conditions and individual company value drivers. Financial Services I am pleased to announce that Power Realty & Investments has become the Loan Correspondent and affiliate of a national Loan Broker who offers the Lowest Possible Interest Rates.
Miami-Dade County, FL
$325,000
Las Vegas, NV
$600,000
Rochester, NY
$49,000
Austin, TX
$300,000
Dallas, TX
$650,000
Roseville, CA
$199,000
Martin County, FL
$280,000
Frederick, MD
$425,000
Fort Lauderdale, FL
$42,000
Dallas, TX
$109,000
Indianapolis, IN
$145,000
New York County, NY
$2,450,000
Antioch, TN
$78,000
Myrtle Beach, SC
$1,500,000
Cincinnati, OH
$162,500
Austell, GA
$425,000
Louisiana
$1,500,000
St. Johns County, FL
$190,000
Mclean County, IL
$2,950,000
Henderson, NV
$60,000
Dallas, TX
$45,000
Los Angeles County, CA
$299,000
Phoenix, AZ
$600,000
Louisiana
$98,000
West Virginia
$650,000
Woodstock, GA
$150,000
Illinois
Kelly Kim
RE/MAX Professionals
Serving Arapahoe County, CO
Little Rock, AR
$230,225
Stamford, CT
$230,225
Suffolk County, NY
$399,999
Kings County, NY
$1,300,000
Cuyahoga County, OH
$135,000
Passaic County, NJ
$499,000
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.
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