REAL ESTATE INCLUDED
Sainte Genevieve, MO
$215,000
REAL ESTATE INCLUDED
Sainte Genevieve, MO
$215,000
Dallas County, TX
$1,750,000
REAL ESTATE INCLUDED
Plano, TX
$3,200,000
Brooklyn, NY
$220,000
New York
$590,000
Saco, ME
$130,000
Los Angeles, CA
$770,000
Macomb County, MI
$199,000
Macomb County, MI
$199,000
Polk County, IA
$150,000
Oneida County, NY
$495,000
Maricopa County, AZ
$80,000
Hartford, OH
$139,999
Westchester County, NY
$850,000
REAL ESTATE INCLUDED
Illinois
Cash Flow: $895,155
Charlotte, NC
$150,000
Steve Tsoris
NewLeaf Business Brokerage, LLC
Serving Mecklenburg County, NC
NewLeaf Business Brokerage connects the best buyers and sellers of businesses across all industries. With over 35 years of domestic and international M&A experience, NewLeaf provides sellers and buyers with a level of expertise and experience to execute transactions with professionalism, diligence and care.
Salt Lake City, UT
$149,995
Suffolk County, NY
$3,200,000
Denver, CO
$240,000
New Jersey
$2,500,000
Saint Louis, MO
$129,900
Chattanooga, TN
$249,000
New Jersey
$425,000
Lancaster County, NE
$325,000
Tonawanda, NY
$299,000
Worcester County, MA
$149,000
Texas
$549,000
Cleveland, OH
$487,900
Somerset County, NJ
$1,650,000
Westborough, MA
$75,000
Boston, MA
$208,900
Knoxville, OH
$384,900
Georgia
Cash Flow: $382,000
Gta, ON
$495,000
Saint Louis, MO
$149,999
Benton County, AR
$340,000
Provo, MA
$150,000
Elgin, IL
$380,000
Marlboro, NJ
$450,000
Eugene, OR
$200,000
Aurora, CO
$149,900
Bucks County, PA
$40,000
California
$1,999,999
Columbus, OH
$1,500,000
Jessica Gaul
Total Transitions LLC
Serving Oakland County, MI
Total Transitions helps business owners navigate the process of buying and selling businesses and commercial real estate. We pride ourselves on maintaining a vast network of professionals to help our clients with all of their business needs throughout the buying and selling process.
Orange County, CA
$695,000
Raleigh, NC
$400,000
Memphis, TN
$394,900
San Antonio, TX
$686,950
Suffolk County, NY
$109,000
Chatham County, GA
$814,999
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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