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Service Business Valuation Formula:

Valuing Service Businesses: This is a general business valuation formula or pricing method for existing Service related businesses based on a percentage of annual gross revenues or sales that can be used to help determine an approximate value and asking price to market an established small service business for sale.

Service Businesses (General): Approximately 50% of annual gross sales.

Broker Comments: I have valued and sold quite a few service related businesses in the Phoenix Arizona market over the last 10 years and this valuation formula or method holds up generally very well in my opinion. Small established service businesses are very attractive to a lot of buyers because they generally don’t have as high an overhead as retail businesses and restaurants, they are easier to grow, and generally they can offer a more attractive lifestyle regarding hours and days of operation.

Need a business valuation or appraisal report for legal, personal, or selling purposes? Request a free & confidential preliminary business valuation consultation about your established service business here.
Note: Always contact and consult with a Business Broker, Business Appraiser, or financial adviser who is familiar with the dynamics of your local market and economy because conditions for establishing an asking price for any service type business can vary based on a wide variety of factors and local conditions.