Business Valuation Multiples by Industry: 2026 Reference Guide

Business valuation multiples vary dramatically by industry — a SaaS company and a landscaping business generating identical EBITDA can trade at 3-4x different multiples. Understanding where your industry falls, and why, is the starting point for any serious valuation exercise.

The data below comes from our analysis of 25,000+ real M&A transactions spanning 1995-2026. These are actual deal prices, not theoretical valuations or survey data. I've organized them by industry with context on what drives multiples higher or lower within each sector.

A few notes before diving in: SDE (Seller's Discretionary Earnings) multiples apply primarily to businesses under $5M revenue where the owner is active in operations. EBITDA multiples apply to larger businesses with professional management. Revenue multiples appear where applicable (primarily technology and recurring-revenue businesses). All ranges represent the 25th to 75th percentile — outliers on both ends exist.

Healthcare Services

Healthcare has been one of the most active M&A sectors for a decade, driven by corporate consolidation and PE interest in recurring-revenue clinical models.

• Dental practices: SDE 1.8-3.0x | EBITDA 5-8x (DSO targets 7-12x)
• Medical practices (primary care): SDE 1.5-2.5x | EBITDA 4-7x
• Veterinary clinics: SDE 2.5-4.0x | EBITDA 8-14x (corporate buyer premiums)
• Dermatology practices: EBITDA 8-14x (PE-driven consolidation)
• Ophthalmology/optometry: EBITDA 6-10x
• Physical therapy: EBITDA 5-8x
• Home health/hospice: EBITDA 8-12x (Medicare reimbursement stability)
• Behavioral health: EBITDA 7-12x (demand-driven premium)

Healthcare multiples are elevated because of predictable demand (people always need healthcare), insurance reimbursement models that create revenue stability, and high barriers to entry (licensure, credentialing, regulatory compliance). The DVM, DDS, and MD shortage across specialties makes workforce acquisition a key deal driver — buyers are often buying the practitioners as much as the patients.

Technology & Software

• SaaS (B2B, $1M+ ARR): Revenue 4-10x | EBITDA 10-20x+
• SaaS (B2B, under $1M ARR): Revenue 2-5x | SDE 3-6x
• IT managed services (MSPs): SDE 3-5x | EBITDA 5-9x
• Custom software development: SDE 2-3.5x | EBITDA 4-7x
• E-commerce (branded DTC): SDE 2.5-4x | EBITDA 4-7x
• E-commerce (Amazon FBA): SDE 2-3.5x
• Digital marketing agencies: SDE 2-4x | EBITDA 4-7x

Technology valuations are dominated by one question: is the revenue recurring? A SaaS company with 95% net revenue retention and 85% gross margins commands multiples that dwarf project-based software shops with equivalent revenue. Monthly recurring revenue (MRR) is the single most valuable revenue type across all industries.

MSPs have become a PE target sector specifically because of their recurring contract models. An MSP with 80%+ recurring revenue from managed contracts trades at the high end; one dependent on break-fix projects trades at the low end.

Home Services & Trades

• HVAC: SDE 2.0-3.5x | EBITDA 5-10x (PE platform 8-11x)
• Plumbing: SDE 2.0-3.0x | EBITDA 4-8x
• Electrical: SDE 2.0-3.0x | EBITDA 4-7x
• Roofing: SDE 1.5-2.5x | EBITDA 3-6x
• Landscaping/lawn care: SDE 1.5-3.0x | EBITDA 3-6x
• Pest control: SDE 2.5-4.0x | EBITDA 5-8x (high recurring)
• Restoration/remediation: SDE 2-3x | EBITDA 4-7x

Home services valuations are driven by two factors: recurring revenue (maintenance contracts, subscription plans) and technician workforce. HVAC leads the sector in multiples because PE consolidation has created aggressive buyer competition. Pest control trades at a premium to its size because recurring contract rates often exceed 80% of revenue — among the highest of any service business.

Roofing trades at a discount because revenue is project-based, weather- dependent, and heavily influenced by insurance claim cycles. A roofing company doing $10M with no recurring revenue sells for materially less than an HVAC company doing $10M with 35% maintenance contracts.

Professional Services

• Accounting/CPA firms: Revenue 1.0-1.5x | SDE 2-3.5x
• Insurance agencies: Revenue 1.5-3.0x | EBITDA 6-10x
• Staffing companies: SDE 2-3x | EBITDA 4-7x
• Engineering firms: SDE 2-3x | EBITDA 4-7x
• Architecture firms: SDE 1.5-2.5x | EBITDA 3-5x
• Law firms: Revenue 0.5-1.5x (limited buyer pool)
• Consulting firms: SDE 2-3.5x | EBITDA 4-8x

Professional services multiples are held down by owner/key-person dependency and client relationship portability risk. The standout is insurance agencies, which command premium multiples because of their recurring commission structure — renewal commissions create a revenue stream that persists with minimal effort. An insurance agency with 90% policy renewal rates and diversified carrier relationships is essentially a recurring revenue business that trades accordingly.

Accounting firms trade on a revenue multiple (1.0-1.5x gross revenue) because the economics are standardized. The challenge is client transition — CPA clients often have personal relationships with their accountant, and client attrition of 10-20% post-sale is common.

Manufacturing

• General manufacturing: EBITDA 4-7x
• Precision/aerospace machining: EBITDA 5-8x
• Food & beverage manufacturing: EBITDA 5-9x
• Contract manufacturing: EBITDA 4-6x
• Packaging: EBITDA 5-8x
• Building products: EBITDA 5-8x

Manufacturing multiples are sensitive to capital intensity, customer concentration, and proprietary vs. commodity positioning. A manufacturer with proprietary products, diversified customers, and modern equipment trades at the high end. A job shop with three customers representing 70% of revenue and aging equipment trades at the low end.

Aerospace-certified manufacturers (AS9100, NADCAP) command premiums because the certifications take years to obtain and create genuine barriers to entry. Food manufacturing has attracted PE interest for defensive portfolio construction — people eat regardless of economic cycles.

Construction & Building

• General contracting: SDE 1.5-2.5x | EBITDA 3-5x
• Specialty subcontractors: SDE 2-3x | EBITDA 4-6x
• Civil/infrastructure: EBITDA 4-7x
• MEP contractors: EBITDA 4-7x

Construction trades at a persistent discount to most other sectors because of project-based revenue, bonding requirements, cyclicality, and thin margins. Specialty subcontractors (electrical, mechanical, fire protection) with service/maintenance divisions trade at premiums to general contractors. Government/infrastructure contractors with backlog visibility and long-term contracts attract more buyer interest than residential builders.

Food & Beverage / Restaurants

• Quick-service restaurants (franchised): SDE 2-3x | EBITDA 4-6x
• Full-service restaurants (independent): SDE 1.5-2.5x
• Multi-unit restaurant groups (5+ locations): EBITDA 4-7x
• Bars/breweries: SDE 1.5-2.5x
• Catering companies: SDE 1.5-2.5x

Restaurant multiples remain compressed relative to other sectors because of thin margins (8-12% EBITDA is above-average for most concepts), high labor costs, lease dependency, and management intensity. The exception: well-run multi-unit franchise groups with standardized operations and consistent unit economics attract PE interest at higher multiples.

Transportation & Logistics

• Trucking (asset-based): EBITDA 3-6x
• Freight brokerage (asset-light): EBITDA 5-9x
• Last-mile delivery: EBITDA 4-7x
• Warehousing/3PL: EBITDA 5-8x

The asset-light vs. asset-heavy divide is stark. Freight brokerages with technology-enabled operations and no fleet to maintain trade at 5-9x EBITDA. Asset-based trucking companies with aging fleets, driver shortages, and cyclical rate exposure trade at 3-6x. 3PL operators with long-term warehousing contracts and e-commerce fulfillment capabilities have become attractive to PE buyers post-pandemic.

Distribution & Wholesale

• Industrial distribution: EBITDA 5-8x
• Specialty chemical distribution: EBITDA 6-9x
• Building materials distribution: EBITDA 4-7x
• Food distribution: EBITDA 4-7x

Distribution multiples hinge on customer stickiness and margin structure. Distributors with proprietary brands, value-added services (kitting, custom packaging, technical support), and long-term contracts trade at premiums to pass-through commodity distributors. Specialty distribution (chemicals, medical supplies, industrial MRO) commands higher multiples because of compliance requirements and customer switching costs.

Auto Services

• Auto dealerships: EBITDA 3-6x (blue sky separate)
• Collision repair: EBITDA 5-9x (Caliber/Service King consolidation)
• Auto repair/maintenance: SDE 1.5-3.0x | EBITDA 3-6x
• Car washes: EBITDA 6-10x (subscription model premiums)

Car washes are the sleeper sector. Express tunnel car washes with monthly membership programs (unlimited washes for $25-$40/month) have attracted massive PE interest. A car wash with 3,000+ members generating $1M+ in recurring membership revenue trades at multiples that rival SaaS companies, because the economics are similar — high gross margins, predictable monthly revenue, low churn.

Fitness & Wellness

• Gyms/fitness studios: SDE 2-3x | EBITDA 4-7x
• Med spas: SDE 2.5-4x | EBITDA 5-9x
• Day spas/salons: SDE 1.5-2.5x

Med spas have emerged as a high-multiple sub-sector thanks to recurring treatment models (Botox every 3-4 months, filler every 6-12 months), high margins on injectables (60-70% gross margin), and rapid growth in consumer demand. Multi-location med spa groups with $3M+ revenue are actively targeted by PE consolidators.

What Moves You Within Your Industry's Range

The ranges above are wide for a reason. Within any industry, your specific multiple depends on:

• Size: Larger businesses command higher multiples. A company with $5M EBITDA will almost always trade at a higher multiple than one with $500K EBITDA, in the same industry, because the buyer pool expands and the business is more diversified.
• Growth rate: Businesses growing 15%+ annually trade at measurable premiums (10-30% higher multiples) to flat or declining businesses.
• Recurring revenue percentage: Across every industry, more recurring revenue means higher multiples. This is the most consistent value driver in M&A.
• Customer concentration: If your top customer is 20%+ of revenue, expect multiple compression. Above 30%, it becomes a significant deal issue.
• Owner dependency: Businesses that operate without the owner command higher multiples than those where the owner is the key salesperson, technician, or relationship manager.
• Geography: Growing markets (Sunbelt, suburban) trade at slight premiums to declining markets.

Use these ranges as directional guidance, not a precise answer. Your business has specific characteristics that push you toward the high or low end of your industry range. The goal of a proper valuation is to identify exactly where you fall and, if possible, what you can do to move higher.