EBITDA multiples by industry
What businesses actually trade for.

Typical ranges by sector

As broad guidance from real transactions — treat all of these as starting points rather than as quotes:

• Insurance agencies — commonly 8–12x, with commercial books highest. Insurance agency valuation → · Selling an insurance agency →
• Veterinary practices — 8–12x for multi-doctor and 5–7x for single-doctor. Selling a veterinary practice →
• Managed IT services — 6–10x depending on contracted recurring revenue. Selling an MSP →
• Home health — 6–10x depending on payor mix and licensure. Selling a home health agency →
• Accounting firms — increasingly 5–9x for firms with scale, though smaller practices still transact near one times revenue. Selling an accounting firm →
• Physical therapy — 5–9x. Selling a physical therapy practice →
• Med spas — 4–8x. How to sell a med spa → · Selling a med spa →
• HVAC, plumbing and landscaping — typically 4–7x with contract-heavy businesses at the top. HVAC valuation guide → · HVAC → · Plumbing → · Landscaping →
• Dental — varies widely by practice type and buyer. Dental practice EBITDA multiples → · Selling a dental practice →

Sector-by-sector valuation guides with fuller detail: pest control · roofing · staffing · trucking · pharmacy · optometry · auto repair · restaurants · gyms · childcare · construction · e-commerce. Or apply your own numbers in the free 60-second valuation calculator — no email needed.

Why the range inside each sector is so wide

The multiple prices risk. In every sector listed above, the businesses at the top of the range share the same characteristics: revenue that recurs under contract rather than being re-won each year, a management layer so the business does not depend on the owner, a diversified customer base, clean financials that survive diligence, and staff who intend to stay. The businesses at the bottom of the range are profitable but fragile — usually because the owner is the business. Moving from the bottom to the top of your sector's range is generally a two-year project, and it is worth far more than any negotiating tactic.

Size changes the multiple too

Larger businesses sell for higher multiples than smaller ones in the same industry, a pattern often called the size premium. A business with $500K of EBITDA and one with $5M of EBITDA in the same sector will not be valued the same way, because the larger business is usually less owner-dependent, has real management, and opens up a deeper pool of institutional buyers. This is one reason owners considering a sale in two or three years are often better served by growing deliberately first — the multiple rises along with the earnings it is applied to.

Common follow-up questions

What is a good EBITDA multiple for a small business?

There is no single good multiple — it depends on your sector, your size, and your risk profile. In the lower middle market most transactions fall between 3x and 12x adjusted EBITDA. A useful test is whether you are at the top or bottom of your own industry's range, and what would need to change to move up within it.

Why do multiples vary so much within the same industry?

Because the multiple prices the certainty of future profit. Recurring contracted revenue, management depth, customer diversification, clean financials, and staff stability all push the multiple up. Owner dependence, customer concentration, project-based revenue, and messy books push it down. Two businesses with identical profit can be worth very different amounts for these reasons alone.