Industry Multiples & Benchmarks
Current industry multiples and benchmarks for different business sectors. Use these as reference points, but remember that actual valuations depend on many specific factors.
Important Notice
These multiples are general industry benchmarks and starting points for valuation. Actual business values vary significantly based on profitability, growth potential, market position, location, and many other factors. A professional valuation considers all relevant factors to determine accurate value.
Industry-Specific Insights
Key Factors:
Restaurants typically sell for 1-2x annual revenue. Profitability and location are critical factors.
Key Factors:
Value often tied to asset base and contract stability. EBITDA multiples higher for profitable operations.
Key Factors:
SaaS businesses command highest multiples. Growth rate and MRR/ARR are key value drivers.
Key Factors:
Medical practices value depends heavily on patient retention and insurance contracts.
Key Factors:
Physical retail facing challenges. Online retail and omnichannel operations more valuable.
Key Factors:
Consulting firms with recurring clients and strong staff command premium multiples.
Key Factors:
Often asset-based valuation. Contract backlog and equipment value are significant factors.
Key Factors:
Service revenue typically more valuable than parts sales. Franchise operations command premium.
Key Factors:
Asset-heavy industry. Fleet value and long-term contracts drive valuation.
Key Factors:
Brokerage value tied to agent retention and listing volume. Technology platforms add value.
Revenue Multiple
A revenue multiple is calculated as: Business Value ÷ Annual Revenue. For example, if your business has $1M in revenue and sells at a 2x multiple, the value would be $2M. Revenue multiples are commonly used but less precise than EBITDA multiples.
EBITDA Multiple
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) multiples are more accurate because they account for profitability. Formula: Business Value ÷ EBITDA. A business with $200K EBITDA selling at 5x would be worth $1M. EBITDA multiples are preferred by professional buyers.
Why Multiples Vary
Multiples vary based on profitability, growth rate, market conditions, business size, customer concentration, competition, and many other factors. A business with 30% profit margins will command higher multiples than one with 5% margins, even in the same industry.
Example 1: Revenue Multiple
Business: Retail store with $500K annual revenue
Industry Multiple: 0.5x revenue
Estimated Value: $500K × 0.5 = $250K
Example 2: EBITDA Multiple
Business: Service company with $300K EBITDA
Industry Multiple: 6x EBITDA
Estimated Value: $300K × 6 = $1.8M
Get an Accurate Valuation
While multiples provide a starting point, a professional valuation considers all factors specific to your business for accurate results.