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Service & Brick-and-Mortar · Selling Guide

What is your service or brick-and-mortar business really worth?

Recurring contracts and a team that delivers without the owner separate a sellable service company from a job; for storefronts and multi-location businesses, a transferable lease matters just as much. Here's what buyers are paying, and what moves you up the range.

Retail storefront
What buyers are paying

Current Service Business multiples

4x–8x
EBITDA — lower-middle-market service businesses
Recurring revenue shareContracted or subscription revenue above 60% is the single biggest lever on a service-business multiple.
Owner independenceIf client relationships and delivery run through you personally, buyers price in the risk of losing them at close.
Client concentrationA top client above 15-20% of revenue narrows your buyer pool and your price.
Documented delivery systemsSOPs, a trained team, and repeatable onboarding prove the business — not just the founder — delivers the work.

Businesses with over 60% contracted or recurring revenue regularly command the top of this range and beyond; project-based, one-off engagements trade toward the bottom. These are general market ranges aggregated from recent lower-middle-market M&A data (GF Data, IBBA Market Pulse, and BizBuySell-aggregated transactions) as of 2025–2026 — not a valuation or appraisal of any specific business. Actual price depends on your financials, buyer competition, deal structure, and diligence findings.

What buyers are paying — Brick-and-Mortar

What a storefront or multi-location business adds to the equation

30 days
typical landlord approval window for a lease assignment
Lease transferabilitySBA lenders require an assignable lease or a new lease before they'll fund a deal; a month-to-month lease or a landlord who can refuse assignment is a red flag buyers price in immediately.
Term remainingBuyers want a long-term lease locked at a predictable rate; fewer than 12–18 months left with no renewal option leaves them exposed to a landlord re-pricing at market.
Multi-location diversificationA single-location business carries concentrated real-estate risk; a proven multi-unit model that isn't dependent on one location or one landlord relationship commands a premium.
Timing the conversationLandlords who learn about a pending sale too late can slow or block it; the lease conversation needs to happen early and stay confidential, not three days before closing.

General figures reflect common commercial-lease assignment practice and SBA lender requirements as of 2025–2026, aggregated from business-brokerage and commercial real estate sources — not a legal opinion on any specific lease. Review your actual lease terms with counsel before marketing the business.

Why owners choose Chetrock

The discipline to turn a job into a sellable business

Most advisors only show up once you're ready to sell. Chetrock is different: an operator-led team that fixes what's actually suppressing your value first, then runs the sale — the same person, start to finish.

See your Value Gap
We build the team around youThe fastest way to raise a service business’s multiple is removing the owner from delivery — that’s the operational work we do before we ever discuss a sale.
We know what recurring revenue is really worthWe help you convert project work into contracted, recurring relationships that buyers pay a premium for.
Confidential, screened buyer processYour team and clients never learn you’re exploring a sale unless you choose to tell them.
Aligned incentivesPaid primarily on a successful close, so our focus is the same as yours: the strongest offer, not just an offer.
How we work

An illustrative example

A 12-person agency where the founder personally ran every client relationship and 40% of revenue was one-off project work. Documenting delivery playbooks, promoting an account lead, and converting two anchor clients to annual retainers took recurring revenue from 35% to 68% in under a year — the single biggest lever on the eventual offer.
Illustrative composite scenario, not a specific past client — real transaction references are available on request during a conversation.

Chetrock has not yet publicly disclosed a closed service-business transaction; this example illustrates the value-creation approach applied across engagements. Ask for verifiable references during your consultation.

Find out what your business is really worth

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