San Diego County, CA
$24,000

San Diego County, CA
$24,000

New York
$2,750,000
Cleveland, OH
$200,990

North Salt Lake, UT
$1,495,000
Snellville, GA
$125,000
Snellville, GA
$400,000
Sanford, FL
$330,000
Indianapolis, IN
$238,750
Bucks County, PA
$190,000
REAL ESTATE INCLUDED
Essex County, MA
$1,750,000
Canada
$3,500,000
Massachusetts
$1,600,000
Rockwall, TX
$1,500,000
$350,000
Grand Rapids, MI
Coos County, OR
$570,000
Eugene, OR
$165,000
Joe Robinson
NAI Norwood Group
Serving Rockingham County, NH
NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms. Through this network of 350 offices in 55 countries, NAI Norwood Group is able to leverage their strong local experience around the world. Whether your commercial real estate needs require local expertise, or you need brokerage consulting around the world, the firm is here to help. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development.
Brook Park, OH
$135,000
Knoxville, TN
$145,000
Fort Lauderdale, FL
$599,000
The Woodlands, TX
$89,999
Alachua County, FL
$99,900
South San Francisco, CA
$375,000
Arlington Heights, IL
$5,900,000
$1,010,000
$150,000
Frisco, TX
Deschutes County, OR
$2,995,000
Mesa County, CO
$350,000
Gwinnett County, GA
$395,000
Orange County, FL
$90,000
REAL ESTATE INCLUDED
Pinellas County, FL
$1,950,000
Burlington, ON
$1,500,000
Strongsville, OH
$128,500
Tennessee
$2,000,000
Naperville, MO
$2,149,999
Belmont, NC
$17,500
$40,000
Miami-Dade County, FL
Monterey County, CA
$790,000
Greenville, SC
$220,000
Tulsa, OK
$489,749
Frederick, MD
$215,000
San Francisco, CA
$229,000
The Woodlands, TX
$120,000
Spring Hill, FL
$625,000
Hillsborough County, FL
$1,195,000
Paul Robinson
Transworld
Serving Canada
Before you decide on selling your company, you owe it to yourself to call Transworld Business Advisors. There is no obligation, just a confidential conversation about how to sell your company and how much it is worth, now and in the future!
Fairhope, AL
$25,000
La Puente, CA
$615,000
$100,000
Lake County, IL
Windsor, CA
Not Disclosed
Cash Flow: $120,000
Not Disclosed
EBITDA: $966,000
Wisconsin
$1,500,000
Richmond County, NY
$425,000
Pierce County, WA
$3,572,000
Boston, MA
$640,000
Bergen County, NJ
$849,000
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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