Free Calculator
Service Business Valuation Calculator
Estimate the value of your field service business based on revenue, profit margins, growth rate, and industry multiples. Plan your exit strategy.
Estimate Your Business Value
Total revenue for the last 12 months
After all expenses including owner salary
Year-over-year revenue growth
More history = higher valuation
Low Estimate
$150,000
Most Likely Value
$200,000
High Estimate
$250,000
Earnings Multiple
2.0x
Valuation basis: Your annual profit of $100,000 multiplied by a 2.0x earnings multiple gives an estimated value of $200,000. That is 0.40x your annual revenue.
How Business Valuations Work
Earnings multiple method: The most common method for service businesses. Your Seller Discretionary Earnings (SDE) -- net profit plus owner salary and perks -- is multiplied by a factor based on business size, growth, and stability.
What drives the multiple higher: Recurring revenue (maintenance contracts), documented processes, a team that runs without the owner, diversified customer base, strong online reputation, and consistent growth.
What lowers the multiple: Owner-dependent operations, no documented processes, inconsistent revenue, single-customer concentration, and lack of systems/software.
Tips for Increasing Your Business Value
- 1.
Build recurring revenue through maintenance agreements. Buyers pay premium multiples for predictable income.
- 2.
Document every process and procedure. A business that runs without the owner is worth 2-3x more than one that depends on them.
- 3.
Use software systems like GetTimePad for everything -- scheduling, dispatch, invoicing, reviews. Systematized businesses sell for higher multiples.
- 4.
Diversify your customer base. If any single customer is more than 10% of revenue, work to reduce that concentration.
- 5.
Build your online reputation. 100+ Google reviews with a 4.5+ rating is a tangible, transferable asset.
- 6.
Keep clean financial records. Buyers and lenders need 3+ years of organized books to justify a premium valuation.
GetTimePad tracks all this automatically.
Real-time profitability tracking, automated invoicing, and business insights -- all built into your field service workflow.
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