Multiples by trade
| Trade | SDE multiple: median (middle half) | Revenue multiple: median (middle half) | Larger deals (EBITDA) |
|---|---|---|---|
| 2.48x (1.6x-3.37x) | 0.7x (0.51x-0.86x) | 5-8x EBITDA; 9-12x EBITDA | |
| 2.58x (1.99x-3.33x) | 0.56x (0.38x-0.74x) | 4.6x median / 5.1x mean EBITDA; 9.5x EBITDA average (2.0x revenue) | |
| 2.24x (1.66x-3.15x) | 0.59x (0.42x-0.85x) | 3.0-4.5x EBITDA; 4.0-5.5x EBITDA | |
| 2.04x (1.69x-3x) | 0.96x (0.69x-1.27x) | 3.5-5x EBITDA; 5-7x EBITDA | |
| 2.43x (1.81x-3.13x) | 0.52x (0.35x-0.74x) | 3-5x EBITDA; 5-7x EBITDA | |
| 2.56x (1.96x-3.15x) | 0.54x (0.39x-0.72x) | 4.1x median / 5.0x mean EBITDA; 6.2-6.4x EBITDA average | |
| cited range 2x-3.5x | - | 5-7x EBITDA; 3-5x vs 6-8x EBITDA | |
| 2.3x (1.7x-3.01x) | 0.63x (0.46x-0.88x) | 7-15x EBITDA | |
| 2.05x (1.46x-2.94x) | 0.62x (0.42x-0.91x) | not reliably published | |
| 2.04x (1.61x-2.66x) | 1.02x (0.92x-1.17x) | not reliably published | |
| 2.7x (1.88x-3.44x) | 1.51x (0.94x-2.17x) | not reliably published | |
| 2.45x (1.69x-3.75x) | 0.29x (0.2x-0.45x) | not reliably published | |
| 5.18x (3.2x-6.7x) | 2.01x (1.03x-3.01x) | not reliably published | |
| 3.5x (2.72x-4.5x) | 1.21x (0.93x-1.64x) | not reliably published | |
| 2.43x (1.81x-3.13x) | 0.52x (0.35x-0.74x) | 10.6x (PE buyers) / 7.5x (strategic) EBITDA average | |
| 2.96x (2.29x-3.56x) | 0.59x (0.39x-0.86x) | not reliably published | |
| cited range 2x-4.3x | - | 6-8x EBITDA; 2.77-4.08x EBITDA | |
| cited range 1.34x-2.53x | - | 1.34-2.53x SDE (average 2.15x); 0.39x revenue; median price $220,000; Priced individually; the largest recent example, RBI buying Carrols (1,023 Burger Kings), was an all-cash deal at about $1.0B enterprise value |
Who buys each business and the main transfer issue
| Industry | Typical buyers | Main license / transfer issue | Source |
|---|---|---|---|
| Associate or outside dentists financed by practice lenders or SBA loans; DSOs (general and specialty); dentist-owned groups; occasionally a neighboring practice merging patient bases. | Corporate practice of dentistry: Many states restrict who may own a dental practice. | Texas Occupations Code 251.003 - practice of dentistry includes owning a dental office | |
| Individual buyers with SBA financing; competitors and neighboring contractors; PE-backed home-services platforms (Apex, Wrench, Sila, TurnPoint and others) buying add-ons. | State contractor license: Usually tied to the entity and a qualifying individual. | California CSLB - Change in business entity (license not transferable) | |
| Individual buyers with SBA financing; competitors; PE-backed home-services platforms adding plumbing to HVAC. | State contractor license: Usually tied to the entity and a qualifying individual. | California CSLB - Change in business entity (license not transferable) | |
| Individual buyers and technicians buying routes; local competitors; public strategics (Rollins, Rentokil Terminix); PE-backed platforms and Anticimex. | Business license on transfer (Florida example): Florida requires a pest control business license application on transfer of ownership, and the business must operate under a certified operator in charge certified in its categories (F.S. | ||
| Competitors and individual buyers; PE-backed residential roofing platforms; commercial roofing consolidators; public strategics. | State contractor license: Usually tied to the entity and a qualifying individual. | California CSLB - Change in business entity (license not transferable) | |
| Individual buyers; competitors; home-services platforms (residential service); specialty-contractor platforms and strategics (commercial). | State contractor license: Usually tied to the entity and a qualifying individual. | California CSLB - Change in business entity (license not transferable) | |
| Associate or outside veterinarians (SBA / practice loans); corporate consolidators (Mars-owned groups, PE-backed platforms); veterinarian-led partnership models. | Premises registration (California example): California requires a registered premises and a licensee manager; the registration is not transferable, and a change of ownership must be reported to the Veterinary Medical Board within 30 days.. | California Business and Professions Code 4853 - veterinary premises registration | |
| Individual buyers (SBA); local competitors; commercial landscaping platforms (BrightView, Yellowstone and PE-backed regionals). | Pesticide applicator licenses: If you apply fertilizer or pesticides, applicator licenses are personal. | General practice point | |
| Physicians buying in or buying out; hospital and health systems; PE-backed physician groups (specialty-dependent). | Corporate practice of medicine (California example): California law gives corporations no professional rights in medicine (B&P Code 2400), so lay buyers use management-services structures with a physician-owned practice entity.. | California Business and Professions Code 2400 - corporations have no professional rights (medicine) | |
| Other CPAs and regional firms (often with retention-based payouts); PE-backed accounting platforms (for larger firms or through their member firms). | CPA ownership rules: Under the Uniform Accountancy Act model, a majority of a CPA firm's ownership (financial interests and voting rights) must be held by CPAs. | NASBA/AICPA Uniform Accountancy Act, 9th edition (firm ownership, Section 7) | |
| Local agencies and producers; regional independents; PE-backed insurance brokers and aggregators. | Agency and producer licenses: Producer licenses are personal. | NAIC Uniform Application for Business Entity License (designated responsible licensed producer) | |
| Pharmacists buying their first store; multi-store independents; regional chains; national chains buying files. | State pharmacy license: Pharmacy licenses are generally not transferable. | Texas State Board of Pharmacy - change of ownership instructions | |
| Individual investors; regional operators; national express-wash chains; real-estate investors (sale-leasebacks). | Environmental review: Lenders typically require a Phase I environmental site assessment on real estate; EPA recognizes ASTM E1527-21 as satisfying federal "all appropriate inquiries.". | Federal Register - EPA recognizes ASTM E1527-21 for All Appropriate Inquiries | |
| Individual investors and owner-operators (often SBA-financed); multi-store owners; a small number of laundromat roll-ups. | Lease assignment: Most laundromat value depends on assigning the lease; secure landlord consent and options early.. | General practice point | |
| Competitors and key employees; individual buyers for small trades; strategic contractors; PE-backed specialty platforms. | State contractor license: Usually tied to the entity and a qualifying individual. | California CSLB - Change in business entity (license not transferable) | |
| Competitors and larger carriers; owner-operators stepping up; logistics groups; equipment buyers in liquidation scenarios. | USDOT number and operating authority: FMCSA says USDOT numbers cannot be sold and operating authority can only move as part of a legitimate transaction that FMCSA records; sole proprietors face extra limits.. | ||
| Licensed funeral directors and neighboring independents; regional groups; public consolidators; private-capital funeral groups. | Establishment license (Texas example): In Texas a change of ownership is effected by a new license application or a Commission form filed within 30 days; the new owner keeps the license number and its complaint history (22 TAC 203.9).. | 22 Tex. Admin. Code 203.9 - licensure of funeral establishments (change of ownership) | |
| Individual owner-operators (often SBA-financed) buy most independents; experienced operators and multi-unit franchisee groups buy larger or franchised units. | Liquor license transfer (California example): California requires an escrow with a neutral holder before filing a liquor license transfer application where there is a purchase price; the buyer deposits the full price, and the escrow pays the seller's bona fide creditors who file claims before ABC approves the transfer (B&P Code 24074).. |
Multiples by deal size (all industries)
| Deal size | Basis | Q2 2026 | Q2 2025 |
|---|---|---|---|
| Under $500K | SDE | 2.0x | 2.3x |
| $500K-$1M | SDE | 2.8x | 2.8x |
| $1M-$2M | SDE | 3.1x | 3.0x |
| $2M-$5M | EBITDA | 4.0x | 3.9x |
| $5M-$50M | EBITDA | 5.8x | 5.5x |
Why EBITDA multiples look so much higher
An EBITDA multiple applies to a smaller number (profit after paying someone to do your job) and to bigger companies that carry less risk. A 9.5x EBITDA figure from a middle-market HVAC report (Capstone Partners) and a 2.6x SDE median from BizBuySell can both be right: they describe different businesses. Read the size tier before you quote a multiple to yourself.
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Frequently asked questions
What is a good EBITDA multiple?
It depends on size. In Q2 2026 the IBBA Market Pulse reported about 4.0x EBITDA for $2M-$5M deals and 5.8x for $5M-$50M. Trade-specific middle-market figures run higher (for example 9.5x for HVAC services per Capstone Partners).
What is the average multiple for a small business?
BizBuySell reports a 2.7x average cash-flow multiple across all industries for Q2 2026.
Sources
- BizBuySell - Business valuation multiples by industry (sold Q3 2021-Q2 2026) (accessed 2026-09-23)
- BizBuySell Insight Report (Q2 2026) (accessed 2026-09-23)
- IBBA / M&A Source / Pepperdine Market Pulse, Q2 2026 highlights (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Dental Practice (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - HVAC (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Plumbing (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Pest Control (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Construction (all building & construction) (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Electrical & Mechanical Contractor (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Landscaping & Yard Service (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Medical Practice (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Accounting & Tax Practice (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Insurance Agency (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Pharmacy (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Car Wash (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Laundromats & Coin Laundry (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Trucking Company (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Funeral Home (accessed 2026-09-23)
- BizBuySell Valuation Benchmarks - Restaurants (accessed 2026-09-23)
- FOCUS Investment Banking - Dental practice EBITDA multiples 2026 (accessed 2026-09-23)
- DDSmatch - How to value a dental office before selling (2025-06) (accessed 2026-09-23)
- BMI Mergers & Acquisitions - Construction industry valuations and EBITDA multiples (2024-12) (accessed 2026-09-23)
- Capstone Partners - HVAC services M&A update (2026-07) (accessed 2026-09-23)
- Sofer Advisors - How much is a plumbing business worth (2026-06) (accessed 2026-09-23)
- Breakwater M&A - Pest control company valuation multiples 2026 (accessed 2026-09-23)
- Profitability Partners - Roofing company valuation (2026-06) (accessed 2026-09-23)
- AXIA Advisors - Private equity in roofing (2025-03) (accessed 2026-09-23)
- BMI Mergers & Acquisitions - Electrical contractors 2024 recap (citing GF Data) (accessed 2026-09-23)
- Sofer Advisors - Veterinary practice valuation methods and multiples (2026-04) (accessed 2026-09-23)
- DVM Elite - The role of EBITDA in selling your veterinary practice (accessed 2026-09-23)
- Today's Veterinary Business - Veterinary consolidation (2023-11) (accessed 2026-09-23)
- Livingstone Partners - Commercial landscaping: private equity activity and valuation (2024-11) (accessed 2026-09-23)
- Capstone Partners - Construction services M&A update (2026-02) (accessed 2026-09-23)
- The Foresight Companies - Tracking your business worth (2024-11) (accessed 2026-09-23)
- Peak Business Valuation - Valuation multiples for a funeral home (accessed 2026-09-23)
- RBI - Burger King Company completes acquisition of Carrols Restaurant Group (May 16, 2024) (accessed 2026-09-23)
- Texas Occupations Code 251.003 - practice of dentistry includes owning a dental office (accessed 2026-09-23)
- California CSLB - Change in business entity (license not transferable) (accessed 2026-09-23)
- Florida Statutes 482.071 - pest control business licenses (accessed 2026-09-23)
- California Business and Professions Code 4853 - veterinary premises registration (accessed 2026-09-23)
- California Business and Professions Code 2400 - corporations have no professional rights (medicine) (accessed 2026-09-23)
- NASBA/AICPA Uniform Accountancy Act, 9th edition (firm ownership, Section 7) (accessed 2026-09-23)
- NAIC Uniform Application for Business Entity License (designated responsible licensed producer) (accessed 2026-09-23)
- Texas State Board of Pharmacy - change of ownership instructions (accessed 2026-09-23)
- Federal Register - EPA recognizes ASTM E1527-21 for All Appropriate Inquiries (accessed 2026-09-23)
- FMCSA - Can I sell my USDOT# or MC# (operating authority)? (accessed 2026-09-23)
- 22 Tex. Admin. Code 203.9 - licensure of funeral establishments (change of ownership) (accessed 2026-09-23)
- California B&P Code 24074 - Transfer of licenses, escrow (accessed 2026-09-23)