Missouri
$399,900
Missouri
$399,900
Fort Wayne, OK
$257,900
Pittsburgh, PA
$139,999
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
Pittsburgh, PA
$140,000
Philadelphia County, PA
$299,000
Nassau County, NY
$329,999
Gretna, LA
$125,000
Maricopa County, AZ
$350,000
Saint Louis, MO
$475,000
Scottsdale, AZ
$700,000
Neosho County, KS
$350,000
Eddy A. Dingman
National Acquisitions & Investment Group LLC
Serving Cook County, IL
National Acquisitions & Investment Group LLC is a middle market M&A Firm that specializes in the selling & buying of Specialty Businesses & Properties. We work with investors in building portfolios and the selling of portfolios or certain businesses & properties for individual sellers & buyers.
Hartford, MA
$17,490
Greensboro, NC
$17,499
Chattanooga, TN
$139,999
Detroit, CT
$239,000
Media, PA
$129,000
Daytona Beach, FL
$389,000
REAL ESTATE INCLUDED
Alabama
Cash Flow: $658,000
Macon Brm, OR
$239,000
New Haven County, CT
$895,000
Los Angeles, CA
$598,000
Dallas, TX
$250,000
Charlotte, NJ
$140,000
Fairfield County, CT
$995,000
Fort Lauderdale, TN
$139,990
Encino, CA
$119,000
Cincinnati, OH
$479,000
Florida
$406,000
Atlanta, GA
$100,000
Arlington Heights, IL
$120,000
Salt Lake City, UT
$40,700
Atlanta, GA
$2,800,000
REAL ESTATE INCLUDED
North Carolina
$800,000
Allen County, IN
$814,632
Illinois
$1,350,000
Nashville, TN
$198,640
Boston, MA
$198,640
Evergreen Park, IL
$165,000
Michigan
$975,000
G. Robert (Bob) Allen, CBI, M&AMI
Business Team
Serving Fresno County, CA
The Largest Business Brokerage Firm in the Western United States, with 16 offices in 5 states and over 7,500+ closed transactions since 1981
California
$500,000
Hampton, VA
$50,000
Colorado
$1,800,000
REAL ESTATE INCLUDED
Connecticut
$2,899,000
Florida
$4,500,000
Carlstadt, NJ
$4,250,000
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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