EBITDA Multiples by Industry
Current valuation multiples for 33 industries. Data updated for 2026 based on recent transaction activity.
| Industry ↑ | Category ↕ | SDE Multiple ↕ | EBITDA Multiple ↕ | Typical Deal Size |
|---|---|---|---|---|
| Accounting & CPA | Professional Services | 1x - 2xmid: 1.5x | 3x - 6xmid: 4.5x | $200K - $3M |
| Auto Repair | Consumer Services | 1.5x - 3.5xmid: 2.5x | 3x - 6xmid: 4.5x | $200K - $3M |
| Beverage Distribution | Food & Beverage | 3.5x - 7xmid: 5x | 6x - 10xmid: 8x | $2M - $30M |
| Dental Practice | Healthcare | 2.5x - 5xmid: 3.5x | 4.5x - 8xmid: 6x | $500K - $5M |
| Electrical | Home Services | 2.5x - 4.5xmid: 3.5x | 4x - 7xmid: 5.5x | $1M - $12M |
| Fitness / Gym | Consumer Services | 2x - 5xmid: 3.5x | 4x - 8xmid: 6x | $300K - $5M |
| Food Manufacturing | Manufacturing | 3x - 6xmid: 4.5x | 5x - 9xmid: 7x | $2M - $25M |
| General Contractor | Construction | 2x - 4xmid: 3x | 3.5x - 6.5xmid: 5x | $500K - $10M |
| Home Health | Healthcare | 2.5x - 5.5xmid: 4x | 4.5x - 8.5xmid: 6.5x | $500K - $8M |
| HVAC | Home Services | 2.5x - 4.5xmid: 3.5x | 4x - 7xmid: 5.5x | $1M - $15M |
| Industrial Manufacturing | Manufacturing | 3x - 6xmid: 4.5x | 5x - 8.5xmid: 6.5x | $1M - $20M |
| Landscaping | Home Services | 1.5x - 3.5xmid: 2.5x | 3x - 5.5xmid: 4x | $300K - $5M |
| Last Mile Delivery | Transportation | 3x - 6xmid: 4.5x | 5x - 9xmid: 7x | $1M - $20M |
| Logistics & Warehousing | Distribution | 3x - 6xmid: 4.5x | 5x - 9xmid: 7x | $2M - $25M |
| Marketing Agency | Professional Services | 2x - 5xmid: 3.5x | 4x - 8xmid: 6x | $300K - $8M |
| MSP / IT Services | Professional Services | 3.5x - 7xmid: 5x | 6x - 11xmid: 8x | $500K - $15M |
| OB-GYN / Women's Health | Healthcare | 2.5x - 5xmid: 3.5x | 5x - 9xmid: 6.5x | $1M - $15M |
| Orthopedics | Healthcare | 3x - 5.5xmid: 4x | 5x - 10xmid: 7x | $1M - $20M |
| Pain Management | Healthcare | 3x - 5xmid: 4x | 5x - 9xmid: 6.5x | $1M - $15M |
| Pest Control | Home Services | 3x - 5.5xmid: 4x | 5x - 8.5xmid: 6.5x | $500K - $10M |
| Physical Therapy | Healthcare | 2.5x - 4.5xmid: 3.5x | 4x - 7xmid: 5.5x | $300K - $4M |
| Plumbing | Home Services | 2x - 4xmid: 3x | 3.5x - 6.5xmid: 5x | $500K - $10M |
| Precision Manufacturing | Manufacturing | 3x - 6xmid: 4.5x | 5x - 9xmid: 7x | $1M - $20M |
| Restaurant | Consumer Services | 1.5x - 4xmid: 2.5x | 3x - 6.5xmid: 4.5x | $200K - $5M |
| Roofing | Home Services | 2x - 4xmid: 3x | 3.5x - 6xmid: 4.5x | $500K - $8M |
| Salon / Spa | Consumer Services | 1.5x - 3.5xmid: 2.5x | 3x - 6xmid: 4.5x | $150K - $2M |
| Software Development | Technology Services | 3x - 7xmid: 5x | 6x - 12xmid: 8x | $500K - $15M |
| Specialty Contractor | Construction | 2.5x - 4.5xmid: 3.5x | 4x - 7xmid: 5.5x | $500K - $10M |
| Staffing & Recruiting | Professional Services | 2x - 5xmid: 3.5x | 4x - 8xmid: 6x | $500K - $10M |
| Trucking | Transportation | 2x - 4xmid: 3x | 3.5x - 6.5xmid: 5x | $500K - $15M |
| Urgent Care | Healthcare | 3x - 6xmid: 4.5x | 5x - 9xmid: 7x | $1M - $10M |
| Veterinary Practice | Healthcare | 3x - 6xmid: 4.5x | 5x - 9xmid: 7x | $1M - $8M |
| Wholesale Distribution | Distribution | 2.5x - 5.5xmid: 4x | 4.5x - 8xmid: 6x | $1M - $15M |
Showing 33 of 33 industries
Methodology & Data Sources
How We Calculate Multiples
Our multiples are derived from analysis of completed transactions in each industry, focusing on businesses with $500K - $10M in annual revenue. We weight recent transactions more heavily and adjust for market conditions.
SDE vs EBITDA
SDE (Seller's Discretionary Earnings) is typically used for owner-operated businesses. EBITDA is used for larger businesses with professional management. EBITDA multiples are generally higher.
Multiple Ranges
Ranges reflect variability based on business quality, growth, recurring revenue, customer concentration, and owner dependency. Premium businesses command high-end multiples; distressed assets trade at low-end.
Data Updates
We update this data quarterly based on new transaction data and market conditions. Last updated: July 2026.
2026 EBITDA Multiple Benchmarks
Across all 33 industries
For owner-operated businesses
Software Development
Landscaping
Average EBITDA Multiple by Category
Frequently Asked Questions
What is a good EBITDA multiple for a small business?
For small businesses with $1-5M in revenue, EBITDA multiples typically range from 3x to 6x. The average across all industries in 2026 is 6.0x. Businesses with recurring revenue, strong growth, and low owner dependency command premium multiples at the higher end of this range, while those with declining revenue or high customer concentration trade at lower multiples.
What is the difference between SDE and EBITDA multiples?
SDE (Seller's Discretionary Earnings) adds back owner's salary and benefits to EBITDA, making it the standard metric for owner-operated businesses under $5M revenue. SDE multiples average 3.7x. EBITDA is used for larger businesses with professional management and typically commands higher multiples (average 6.0x) because these businesses have more transferable value and scalability.
Which industries have the highest EBITDA multiples?
In 2026, the highest EBITDA multiples are found in technology-enabled services, healthcare, and businesses with strong recurring revenue models. Managed Service Providers (MSPs), dental practices, and veterinary clinics consistently command multiples of 5-8x EBITDA. The lowest multiples are typically seen in retail, restaurants, and highly competitive service businesses with low barriers to entry.
How do I increase my business's EBITDA multiple?
The top factors that increase EBITDA multiples are: (1) Building recurring revenue through service contracts or subscriptions, (2) Reducing owner dependency by building a management team, (3) Diversifying your customer base so no single customer exceeds 15% of revenue, (4) Documenting processes and creating operational SOPs, and (5) Showing consistent revenue growth over 3+ years. Each of these factors can add 0.5-1.0x to your multiple.
What affects EBITDA multiples in a buyer's market vs. seller's market?
In a seller's market with high buyer competition, multiples can increase by 1-2x above baseline. In a buyer's market with economic uncertainty, multiples compress by a similar amount. Interest rates also play a role - higher rates typically reduce multiples as acquisition financing becomes more expensive. Current 2026 market conditions favor quality businesses with strong fundamentals.
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