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What is a service business worth?
Service businesses that sold from 2021 to 2025 went for a median of 2.38x seller's discretionary earnings (SDE). The middle half sold for 1.75x to 3.13x. [1]
Last verified October 24, 2026
What multiple do service businesses sell for?
- Lower quartile
- 1.75x
- Median
- 2.38x
- Upper quartile
- 3.13x
Times seller's discretionary earnings (SDE). All service businesses, BizBuySell, sales 2021–2025; 5,839 sales.
SDE is the profit one owner takes out of the business: pre-tax profit plus one owner's pay and perks, interest, depreciation and one-time costs. How we calculate it.
What raises the value of service businesses?
- Upper-quartile pricing goes with consistent financials, above-average revenue and earnings, growth potential, low owner involvement, a competitive advantage and seller financing (common to all BizBuySell benchmark pages). [2]
What lowers the value of service businesses?
- Lower-quartile pricing goes with low sales volume, thin margins, full-time owner involvement and many competitors (common to all BizBuySell benchmark pages). [2]
What is the market for service businesses like?
- 73% of buyers target stable, essential service businesses (Q2 2025). [3]
- Q3 2026 service sector: median sale price $350,000, median cash flow $157,378, 992 transactions (+10% QoQ, +9% YoY). [4]
- Full-year 2025 service sector average cash-flow multiple 2.52. [5]
Which types of business does this cover?
Each type uses its own published quartiles where they exist; the rest use the broader category, and the table says which.
| Type | SDE multiple low – median – high | Figures |
|---|---|---|
| Waste management & recycling | 1.75x – 2.38x – 3.13x | Based on the broader category: All service businesses |
Low and high are the lower and upper quartiles: the middle half of sales. Figures are BizBuySell, businesses sold 2021–2025.
Waste management & recycling
Based on the broader category (All service businesses): no published quartiles for waste management & recycling.
Value a waste management & recycling business
How should you use these numbers?
Multiply your SDE by a multiple in the range to get a rough price for the business, not counting real estate. Where you land in the range depends on how much the business depends on you, how much revenue repeats, growth, customer concentration and the other factors in the calculator. Half of all sales land outside the quartile range, so a real deal can go higher or lower.
An estimate for planning, not an appraisal. It is not tax, legal or investment advice. For a sale, a bank loan, a partner buyout, a divorce or an estate, hire a certified appraiser (CVA, ABV or ASA).
Where do these numbers come from?
Sources and the dates we checked them
| # | Source | Data period | Published | Type | Checked |
|---|---|---|---|---|---|
| 1 | BizBuySell Valuation Benchmarks: All Service Businesses BizBuySell (CoStar Group) | Businesses sold 2021–2025 | Businesses sold 2021–2025 | transaction data | 2026-10-24 |
| 2 | BizBuySell Valuation Benchmarks: Manufacturing BizBuySell (CoStar Group) | Businesses sold 2021–2025 | Businesses sold 2021–2025 | transaction data | 2026-10-24 |
| 3 | Small Business Trends on BizBuySell Q2 2025 / SBA SOP 50 10 8 Small Business Trends | Q2 2025 | 2025-07-24 | transaction data | 2026-10-24 |
| 4 | BizBuySell Insight Report (Q3 2026) BizBuySell | Q3 2026 | 2026-10-20 | transaction data | 2026-10-24 |
| 5 | BizBuySell 2025 Fourth Quarter Insight Report BizBuySell | Full year 2025 | Full year 2025 | transaction data | 2026-10-24 |