What is a business services company worth
Seven questions and the owner's own figures give an estimated range of value, computed from published sale data, with what moves it. At no cost, and held in confidence.
The market data behind it
No published source gives a band for business and industrial services on its own, so the estimate uses the multiples reported for completed sales of a similar size, across all industries.
By size of sale, all industries
Sales under half a million dollars
2.0 times owner earnings
Half a million to one million dollars
2.8 times owner earnings
One to two million dollars
3.1 times owner earnings
Two to five million dollars
4.0 times EBITDA
Five to fifty million dollars
5.8 times EBITDA
IBBA and M&A Source, Market Pulse, Q2 2026 highlights (published August 2026). The estimate takes the reported multiple half a turn either side and positions the business within that band by its answers; that band is the firm's method, not a published figure.
Questions owners ask
How is a business services company valued?
Most owner-operated businesses sell on a multiple of what they earn for their owner. Across industries, the IBBA and M&A Source Market Pulse reports the multiple completed sales achieved by size of sale: in Q2 2026, 2.0 times owner earnings for sales under half a million dollars, 2.8 times from half a million to one million, 3.1 times from one to two million, and 4.0 and 5.8 times EBITDA for sales of two to five and five to fifty million dollars. Where in the range a business sits depends on how much of its revenue recurs, how much rests on one customer, and how much rests on the owner.
What are owner earnings?
Owner earnings, or seller's discretionary earnings (SDE), are the profit before tax plus the owner's own salary and the personal expenses the business pays. Larger companies with a management team are usually priced on EBITDA instead, which is earnings after paying a manager to do the owner's job.
What moves the multiple?
Revenue that recurs under contract, no single customer carrying the business, a team that runs the daily work without the owner, and records that prove the earnings. Each is work that can be done before a sale, and each is priced by a buyer.
Is the estimate an appraisal?
No. It is a starting point from published market data and the figures given, not an appraisal, a fairness opinion or an offer. What a buyer pays turns on the records behind the figures and on how many buyers compete.
What happens after the estimate?
The estimate appears on screen and Wild Rose Advisors keeps a copy with the answers, in confidence. An owner who wants to test it against the real figures can book a short call; nothing is owed for talking. The firm can also be reached at (877) 549-4685.