Reeuwijk
$1,530,000
Reeuwijk
$1,530,000
Pittsburgh, PA
$2,580,000
New Jersey
$2,500,000
Nevada
$25,000
California
New Jersey
$5,900,000
Phoenix, AZ
$1,750,000
Santa Cruz
$20,500,000
Contra Costa County, CA
Cash Flow: $438,000
Riyadh
$55,000,000
Illinois
$2,000,000
Alameda County, CA
Cash Flow: $1,000
South Carolina
$750,000
$690,000
Gambrills, MD
Charlotte, NC
$10,000
Alameda County, CA
Cash Flow: $155,000
Alpesh Jayswal
Transworld Business Advisors of St. Charles
Serving Kane County, IL
As a Managing Broker with Transworld Business Advisors, we help our clients buy and sell businesses every day. Every broker that is part of our team completes a full business brokerage training course and certification program. We understand that the task of buying or selling a business can be overwhelming without the proper guidance and skills. Over the years, we have helped many companies around the world with the buying and selling process ensuring our client’s confidentiality every step of the way. Our goal is to make the process as smooth as possible for both sides by relying on our global network of experienced business advisors.
Denver, CO
$29,000,000
California
$750,000
St. Louis County, MO
$1,300,000
Alameda County, CA
Cash Flow: $975,496
Pleasanton, CA
Cash Flow: $400,322
$995,000
New York, NY
$2,100,000
Ireland
$1,330,000
Pasco County, FL
Cash Flow: $624,449
Virginia Beach County, VA
Cash Flow: $168,000
Pennsylvania
$790,000
Albany County, NY
$1,100,000
Raleigh, NC
$1,500,000
Texas
Saint Cloud, MN
$975,000
Zagreb
$2,000,000
New Castle County, DE
Cash Flow: $210,000
Texas
$96,000,000
Information technology and software service businesses listed and sold on BizBuySell include managed IT companies (managed service providers, or MSPs), cyber security firms, software platform consultants, marketing services businesses, and related firms. These businesses offer personalized technology services that cater primarily to businesses, making them more stable and recession resistant than typical consumer focused businesses.
If you are looking to buy or sell an IT or software services company, it’s important to understand how these businesses are valued in the business for sale market. To provide some context, we have aggregated IT and software service business for sale listing data below and surfaced important financial and valuation metrics.
Market Overview
Number of Businesses Analyzed |
124 |
Median Asking Price |
$1,049,250 |
Median Reported Revenue |
$809,418 |
Median Reported Earnings |
$290,604 |
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. |
IT and Software Services Business Valuation Multiples
Range |
Revenue |
Earnings (SDE) |
Lower Quartile |
0.76 |
2.76 |
Median |
1.24 |
3.46 |
Upper Quartile |
2.14 |
5.04 |
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. |
Read the Report:
IT and Software Services Business Valuation Multiples & Financial Benchmarks
FAQs
How much does it cost to buy an IT or software services company?
Prices vary depending on the size of the business listed, but the median asking price for an established IT or software services business is $1,049,250.
How much do IT and software services business owners earn?
IT and software services business owners report median annual revenue of $809,418 and annual owner earnings of $290,604. These figures are based on businesses that have listed their annual revenue and seller's discretionary earnings.
How do I value an IT or software services business?
Valuing an IT or software services business involves considering several factors, including annual revenue, profit, growth (or decline) trends, and competition in the app market. 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 among IT and software service businesses listed for sale in the U.S. range from 0.76 to 2.14, with the median at 1.24. Earnings multiples range from 2.76 to 5.04, with the median at 3.46. These values suggest the average IT or software service business listed for sale may trade for around 1.24 times its annual revenue, and 3.46 times its annual owner’s earnings.
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