Business valuation multiples differ significantly by industry. Below are typical ranges as of 2024–2025 for small to lower-middle-market businesses:
Home Services & Trades: | Industry | SDE Multiple | EBITDA Multiple | |----------|-------------|-----------------| | HVAC | 2.5–5.0x | 4.0–7.0x | | Plumbing | 2.0–4.5x | 3.5–6.0x | | Electrical | 2.5–5.0x | 4.0–7.0x | | Pest Control | 3.0–6.0x | 5.0–8.0x | | Landscaping | 1.8–4.0x | 3.0–5.5x | | Roofing | 2.0–4.0x | 3.5–6.0x |
Healthcare & Professional Services: | Industry | SDE Multiple | EBITDA Multiple | |----------|-------------|-----------------| | Dental Practice | 3.5–7.0x | 5.0–9.0x | | Veterinary Practice | 3.5–7.0x | 5.0–10.0x | | Home Healthcare | 3.0–6.0x | 5.0–9.0x | | Accounting/CPA | 2.5–5.0x | 4.0–7.0x | | Insurance Agency | — | — (valued at 1.5–3.5x revenue) |
Technology & Digital: | Industry | Revenue Multiple | EBITDA Multiple | |----------|-----------------|-----------------| | SaaS | 2.0–8.0x ARR | 8.0–20.0x | | Digital Agency | 0.5–1.5x | 4.0–7.0x | | IT Services/MSP | 0.8–2.0x | 5.0–10.0x | | E-Commerce | 0.5–1.8x | 3.5–7.0x |
Other Industries: | Industry | SDE Multiple | EBITDA Multiple | |----------|-------------|-----------------| | Restaurant | 1.5–3.5x | 3.0–5.0x | | Car Wash | 3.0–6.0x | 4.0–8.0x | | Self Storage | 5.0–10.0x | 8.0–14.0x | | Manufacturing | 2.5–5.0x | 4.0–7.0x | | Construction | 2.0–4.0x | 3.0–5.5x |
What drives premium multiples (top of range): 1. Recurring revenue >60% of total revenue 2. Manager-run (low owner dependency) 3. Revenue growing >10% annually 4. No customer >15% of revenue 5. Strong brand or competitive moat 6. Clean, CPA-reviewed financials 7. Experienced management team in place
These ranges represent typical transactions. Outlier deals (strategic acquisitions, competitive bid situations) can exceed these ranges significantly.