EBITDA Multiples by Industry

HVAC businesses typically trade at 4x–7x EBITDA (roughly 2.5x–4.5x SDE for owner-operated companies), with most deals in the $1M - $15M range. Buyers pay toward the top of the range for recurring maintenance contracts, commercial client mix, licensed technician roster, and modern fleet and equipment. Valuations get discounted for owner-dependent relationships, seasonal revenue concentration, aging equipment or fleet, and high employee turnover.

A common deal structure: 70-80% cash at close, 10-20% seller note, 10% earnout.

Plumbing businesses typically trade at 3.5x–6.5x EBITDA (roughly 2x–4x SDE for owner-operated companies), with most deals in the $500K - $10M range. Buyers pay toward the top of the range for emergency/24-hour service capability, commercial contracts, licensed plumber count, and service area density. Valuations get discounted for residential-only focus, single-location operations, owner as primary technician, and no dispatch/scheduling system.

A common deal structure: 70-80% cash at close, 15-25% seller note.

Electrical businesses typically trade at 4x–7x EBITDA (roughly 2.5x–4.5x SDE for owner-operated companies), with most deals in the $1M - $12M range. Buyers pay toward the top of the range for commercial/industrial contracts, EV charging installation capability, solar installation expertise, and master electrician licensing. Valuations get discounted for residential-only service, single master electrician dependency, limited service offerings, and geographic concentration.

A common deal structure: 70-80% cash at close, 15-20% seller note.

Roofing businesses typically trade at 3.5x–6x EBITDA (roughly 2x–4x SDE for owner-operated companies), with most deals in the $500K - $8M range. Buyers pay toward the top of the range for commercial roofing contracts, manufacturer certifications, insurance restoration expertise, and consistent year-round revenue. Valuations get discounted for storm chasing model, high subcontractor reliance, seasonal revenue swings, and no commercial clients.

A common deal structure: 60-75% cash at close, 20-30% seller note.

Landscaping businesses typically trade at 3x–5.5x EBITDA (roughly 1.5x–3.5x SDE for owner-operated companies), with most deals in the $300K - $5M range. Buyers pay toward the top of the range for commercial maintenance contracts, year-round service offerings, irrigation/hardscape capabilities, and multi-year contract base. Valuations get discounted for residential mowing only, seasonal shutdown period, high labor turnover, and no recurring contracts.

A common deal structure: 60-70% cash at close, 20-30% seller note.

Pest Control businesses typically trade at 5x–8.5x EBITDA (roughly 3x–5.5x SDE for owner-operated companies), with most deals in the $500K - $10M range. Buyers pay toward the top of the range for recurring revenue base, route density, multi-service offerings, and termite/WDO capabilities. Valuations get discounted for one-time service focus, sparse route coverage, no recurring contracts, and limited licensing.

A common deal structure: 75-85% cash at close, 15-20% seller note.

Dental Practice businesses typically trade at 4.5x–8x EBITDA (roughly 2.5x–5x SDE for owner-operated companies), with most deals in the $500K - $5M range. Buyers pay toward the top of the range for active patient base size, hygiene production %, associate dentist model, and modern equipment and technology. Valuations get discounted for solo practitioner dependency, outdated facilities, low hygiene production, and poor location.

A common deal structure: 80-90% cash at close, 10-15% seller note.

Veterinary Practice businesses typically trade at 5x–9x EBITDA (roughly 3x–6x SDE for owner-operated companies), with most deals in the $1M - $8M range. Buyers pay toward the top of the range for active client count, emergency/specialty services, multiple veterinarians, and modern diagnostic equipment. Valuations get discounted for single vet dependency, limited services, rural location with thin market, and aging client base.

A common deal structure: 80-90% cash at close, 10-15% seller note or equity rollover.

Urgent Care businesses typically trade at 5x–9x EBITDA (roughly 3x–6x SDE for owner-operated companies), with most deals in the $1M - $10M range. Buyers pay toward the top of the range for patient volume trends, insurance mix, occupational health contracts, and extended hours operation. Valuations get discounted for single location, heavy self-pay mix, limited hours, and physician dependency.

A common deal structure: 75-85% cash, 10-15% seller note, possible equity rollover.

Home Health businesses typically trade at 4.5x–8.5x EBITDA (roughly 2.5x–5.5x SDE for owner-operated companies), with most deals in the $500K - $8M range. Buyers pay toward the top of the range for Medicare certification, referral relationships, nursing staff depth, and geographic coverage. Valuations get discounted for single payer concentration, compliance issues, staff turnover, and limited geographic reach.

A common deal structure: 70-80% cash, 15-20% seller note.

Physical Therapy businesses typically trade at 4x–7x EBITDA (roughly 2.5x–4.5x SDE for owner-operated companies), with most deals in the $300K - $4M range. Buyers pay toward the top of the range for physician referral network, sports medicine focus, multiple therapists, and modern rehabilitation equipment. Valuations get discounted for single therapist practice, single-payer concentration, limited specialization, and poor location.

A common deal structure: 75-85% cash, 15-20% seller note.

Orthopedics businesses typically trade at 5x–10x EBITDA (roughly 3x–5.5x SDE for owner-operated companies), with most deals in the $1M - $20M range. Buyers pay toward the top of the range for insurance-based, in-network payer mix, ancillary services (imaging, PT, DME, injections), multiple providers and locations, and durable referral network. Valuations get discounted for single-physician dependency, heavy personal-injury / single-payer concentration, out-of-network or cash-pay reliance, and surgery-center dependency.

A common deal structure: 70-85% cash at close, 10-20% equity rollover, physician employment agreement.

Pain Management businesses typically trade at 5x–9x EBITDA (roughly 3x–5x SDE for owner-operated companies), with most deals in the $1M - $15M range. Buyers pay toward the top of the range for interventional procedure mix, in-network commercial payer base, multiple providers (MD + mid-levels), and on-site imaging and procedures. Valuations get discounted for high personal-injury / workers-comp concentration, medication-heavy, low-procedure model, single-physician dependency, and compliance / regulatory exposure.

A common deal structure: 70-85% cash at close, 10-20% equity rollover, physician employment agreement.

OB-GYN / Women's Health businesses typically trade at 5x–9x EBITDA (roughly 2.5x–5x SDE for owner-operated companies), with most deals in the $1M - $15M range. Buyers pay toward the top of the range for in-network commercial & Medicaid payer mix, ancillary services (ultrasound, lab, aesthetics), multiple providers (MD + CNM/NP), and stable, growing patient panel. Valuations get discounted for single-physician dependency, obstetrics malpractice exposure, declining deliveries or aging panel, and out-of-network reliance.

A common deal structure: 70-85% cash at close, 10-20% equity rollover, physician employment agreement.

Accounting & CPA businesses typically trade at 3x–6x EBITDA (roughly 1x–2x SDE for owner-operated companies), with most deals in the $200K - $3M range. Buyers pay toward the top of the range for recurring client base, diversified service mix, staff depth and credentials, and low client concentration. Valuations get discounted for owner-performed work, seasonal revenue, high client concentration, and no recurring engagements.

A common deal structure: 60-75% cash, 20-30% earnout tied to retention.

MSP / IT Services businesses typically trade at 6x–11x EBITDA (roughly 3.5x–7x SDE for owner-operated companies), with most deals in the $500K - $15M range. Buyers pay toward the top of the range for monthly recurring revenue, long-term contracts, diversified client base, and security/compliance capabilities. Valuations get discounted for project-based revenue, client concentration, owner as primary technician, and no managed services contracts.

A common deal structure: 70-80% cash, 10-20% seller note, possible equity rollover.

Staffing & Recruiting businesses typically trade at 4x–8x EBITDA (roughly 2x–5x SDE for owner-operated companies), with most deals in the $500K - $10M range. Buyers pay toward the top of the range for direct placement mix, contract/temp revenue, industry specialization, and client diversity. Valuations get discounted for temporary labor only, single industry focus, client concentration, and high recruiter turnover.

A common deal structure: 60-75% cash, 20-30% earnout.

Marketing Agency businesses typically trade at 4x–8x EBITDA (roughly 2x–5x SDE for owner-operated companies), with most deals in the $300K - $8M range. Buyers pay toward the top of the range for retainer-based revenue, diversified services, team depth, and niche specialization. Valuations get discounted for project-based work only, client concentration, owner as creative lead, and no recurring revenue.

A common deal structure: 60-70% cash, 20-30% earnout tied to retention.

Precision Manufacturing businesses typically trade at 5x–9x EBITDA (roughly 3x–6x SDE for owner-operated companies), with most deals in the $1M - $20M range. Buyers pay toward the top of the range for aerospace/defense certifications, modern CNC equipment, long-term contracts, and skilled workforce. Valuations get discounted for outdated equipment, customer concentration, lack of certifications, and owner as primary machinist.

A common deal structure: 70-80% cash, 15-20% seller note, possible earn-out.

Food Manufacturing businesses typically trade at 5x–9x EBITDA (roughly 3x–6x SDE for owner-operated companies), with most deals in the $2M - $25M range. Buyers pay toward the top of the range for co-packing contracts, food safety certifications, brand recognition, and retail/foodservice distribution. Valuations get discounted for single product line, customer concentration, compliance issues, and aging equipment.

A common deal structure: 70-80% cash, 15-20% seller note.

Industrial Manufacturing businesses typically trade at 5x–8.5x EBITDA (roughly 3x–6x SDE for owner-operated companies), with most deals in the $1M - $20M range. Buyers pay toward the top of the range for OEM relationships, proprietary products, geographic reach, and skilled workforce. Valuations get discounted for commodity products, customer concentration, labor issues, and declining end markets.

A common deal structure: 70-80% cash, 15-20% seller note.

Wholesale Distribution businesses typically trade at 4.5x–8x EBITDA (roughly 2.5x–5.5x SDE for owner-operated companies), with most deals in the $1M - $15M range. Buyers pay toward the top of the range for exclusive distribution rights, diverse product lines, strong vendor relationships, and value-add services. Valuations get discounted for commodity distribution, customer concentration, thin margins, and no exclusive territories.

A common deal structure: 70-80% cash, 15-20% seller note.

Logistics & Warehousing businesses typically trade at 5x–9x EBITDA (roughly 3x–6x SDE for owner-operated companies), with most deals in the $2M - $25M range. Buyers pay toward the top of the range for long-term contracts, value-add services, technology systems, and asset-light model. Valuations get discounted for customer concentration, low-margin operations, old fleet/facilities, and driver shortage exposure.

A common deal structure: 70-80% cash, 15-20% seller note.

Auto Repair businesses typically trade at 3x–6x EBITDA (roughly 1.5x–3.5x SDE for owner-operated companies), with most deals in the $200K - $3M range. Buyers pay toward the top of the range for fleet/commercial accounts, specialty services, multiple bays, and strong customer base. Valuations get discounted for owner as primary mechanic, single location, no specialty services, and declining area.

A common deal structure: 70-80% cash, 15-25% seller note.

Fitness / Gym businesses typically trade at 4x–8x EBITDA (roughly 2x–5x SDE for owner-operated companies), with most deals in the $300K - $5M range. Buyers pay toward the top of the range for recurring membership base, personal training revenue, premium positioning, and membership retention rates. Valuations get discounted for high churn rates, equipment-heavy capital needs, commodity positioning, and short lease terms.

A common deal structure: 70-80% cash, 15-20% seller note.

Salon / Spa businesses typically trade at 3x–6x EBITDA (roughly 1.5x–3.5x SDE for owner-operated companies), with most deals in the $150K - $2M range. Buyers pay toward the top of the range for employee model (not booth rental), product sales revenue, membership programs, and strong retail location. Valuations get discounted for booth rental model, owner as primary stylist, high staff turnover, and no recurring revenue.

A common deal structure: 60-75% cash, 20-30% seller note.

Restaurant businesses typically trade at 3x–6.5x EBITDA (roughly 1.5x–4x SDE for owner-operated companies), with most deals in the $200K - $5M range. Buyers pay toward the top of the range for strong brand/concept, multiple locations, manager-operated, and catering/off-premise revenue. Valuations get discounted for owner-operated, single location, declining sales trends, and short lease term.

A common deal structure: 60-75% cash, 20-30% seller note or earnout.

Software Development businesses typically trade at 6x–12x EBITDA (roughly 3x–7x SDE for owner-operated companies), with most deals in the $500K - $15M range. Buyers pay toward the top of the range for recurring revenue, proprietary IP, long-term contracts, and technical team depth. Valuations get discounted for project-based work, key person dependency, client concentration, and no recurring contracts.

A common deal structure: 70-80% cash, 10-20% seller note, possible equity rollover.

General Contractor businesses typically trade at 3.5x–6.5x EBITDA (roughly 2x–4x SDE for owner-operated companies), with most deals in the $500K - $10M range. Buyers pay toward the top of the range for commercial focus, bonding capacity, repeat clients, and project management team. Valuations get discounted for residential only, owner as project manager, limited bonding, and subcontractor dependency.

A common deal structure: 60-75% cash, 20-30% seller note tied to backlog.

Specialty Contractor businesses typically trade at 4x–7x EBITDA (roughly 2.5x–4.5x SDE for owner-operated companies), with most deals in the $500K - $10M range. Buyers pay toward the top of the range for niche expertise, commercial relationships, licensed workforce, and service/maintenance component. Valuations get discounted for project-only focus, single trade, limited geography, and owner dependency.

A common deal structure: 65-80% cash, 15-25% seller note.

Beverage Distribution businesses typically trade at 6x–10x EBITDA (roughly 3.5x–7x SDE for owner-operated companies), with most deals in the $2M - $30M range. Buyers pay toward the top of the range for exclusive distribution rights, route density, major brand portfolios, and on-premise accounts. Valuations get discounted for non-exclusive rights, thin routes, declining brands, and fleet condition.

A common deal structure: 75-85% cash, 10-15% seller note.

Trucking businesses typically trade at 3.5x–6.5x EBITDA (roughly 2x–4x SDE for owner-operated companies), with most deals in the $500K - $15M range. Buyers pay toward the top of the range for dedicated lanes/contracts, modern fleet, driver retention, and specialized equipment. Valuations get discounted for spot market dependency, aging fleet, driver turnover, and owner-operator model.

A common deal structure: 60-75% cash, 20-30% seller note.

Last Mile Delivery businesses typically trade at 5x–9x EBITDA (roughly 3x–6x SDE for owner-operated companies), with most deals in the $1M - $20M range. Buyers pay toward the top of the range for E-commerce contracts, route density, technology integration, and multi-customer base. Valuations get discounted for single customer dependency, thin margins, high driver turnover, and limited geography.

A common deal structure: 70-80% cash, 15-20% seller note.