Santa Monica, CA
$249,000
Santa Monica, CA
$249,000
Richmond, NC
$424,900
Houston, TX
$100,000
Milwaukee, WI
$39,500
Nashville, TN
$30,500
Sioux Falls, SD
$29,500
Rapid City, SD
$22,000
Lebanon, PA
$18,750
Broken Arrow, OK
$28,000
Kettering, OH
$35,000
Dublin, OH
$30,000
Lincoln, NE
$29,500
Rochester, MN
$30,000
Fort Knox, KY
$19,000
Frankfort, KY
$29,500
Bloomington, IN
$19,500
Merrell Stout
Viking Mergers & Acquisitions
Serving Greenville County, SC
Viking's leadership in the industry has pioneered and set the professional standard by which all Intermediary firms are measured. Viking Mergers & Acquisitions is committed to work diligently with every client, as an advocate providing a comprehensive consultative approach to each and every business transaction. Our goal is clear: to maximize the value you derive from buying a business.
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
Denton County, TX
$199,500
Saint Louis, MO
$6,466,000
Bucks County, PA
$350,000
Raleigh, NC
$17,490
Seattle, IN
$238,999
Lowell, MA
$306,900
Canada
$200,000
Ingham County, MI
$345,000
Newhall, CA
$100,000
Plymouth County, MA
$5,000,000
Hartford, CT
$334,900
Louisville, KY
$208,900
Louisiana
$250,000
Phoenix, AZ
$140,000
Lehigh County, PA
$55,000
Boston, MA
$199,500
Missouri
$399,900
Fort Wayne, OK
$257,900
Pittsburgh, PA
$139,999
Gwinnett County, GA
$1,900,000
Steven DuCharme
Gulf Coast Business Acquisitions & Sales
Serving Manatee County, FL
Dallas County, TX
$1,750,000
Florida
$1,899,999
Wappingers Falls, NY
$295,000
REAL ESTATE INCLUDED
Warner Robins, GA
$650,000
Pittsburgh, PA
$140,000
Philadelphia County, PA
$299,000
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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