Get in Touch

EBITDA Multiples by Industry & Company Size: 2024 Report

SEO Blog
Ebitda Multiples

Last Updated: January 31, 2024

Our team recently conducted a meta-analysis of EBITDA multiples for small-to-midsized private businesses of <$250M in revenue, parsing the data by industry and company size. We drew from research published over the past 18 months (Q3 2022-Q1 2024) in M&A and private equity publications in order to get an accurate picture of the current marketplace. The tables below reflect an accurate picture of private company valuations in today’s M&A environment.

Apart from industry and EBITDA range, real-world valuations depend principally on 8 factors:

  1. Recurring revenue
  2. Revenue growth over last 12 months
  3. Key employee turnover
  4. Profit margin
  5. Competitive advantages
  6. Customer concentration
  7. Strength of management team
  8. Growth opportunities

The following tables represent EBITDA multiple averages; achieving these multiples depends on the investor’s weighting of the above factors, as well as the business’ strategic fit with the acquirer or portfolio.

NOTE: If you’re exploring selling your business, see our report on the Top M&A Advisory Firms in the US.

To make the data more meaningful, we’ve broken it down by two further dimensions: revenue growth in the last 12 months and key employee turnover. In addition to EBITDA range and recurring revenue, these tend to be the strongest considerations for acquirers when they’re evaluating a company. Definitions of “high” and “low” in the two categories vary based on acquirer and company size, but a healthy median for last 12 months revenue growth is ~25% and key employee turnover rate is ~5%.

EBITDA Multiples By Industry for $0-1M EBITDA Companies

IndustryKey Employee TurnoverLast 12 Months Revenue Growth Notes
LowHigh
Addiction TreatmentHigh1.2x2.6x
  • Higher multiples for more in-demand specialties, e.g. autism
  • Residential multiples are ~20% higher than outpatient
  • If the treatment center’s real estate is part of the deal, there is added complexity in calculating the valuation
Low1.6x4.1x
Aerospace & DefenseHigh3.8x6.6x
  • Multiples hit historic highs in 2021-2022 driven by military needs related to the Russia-Ukraine war
  • Space security & space tourism companies are fastest growing
Low4.1x8x
AutomotiveHighNon-recurring Revenue: 1.8x
Recurring Revenue: 2.3x
Non-recurring Revenue: 3.5x
Recurring Revenue: 4.1x
  • Coming off years of supply shortages, Automotive OEMs are commanding the highest multiples
LowNon-recurring Revenue: 2.7x
Recurring Revenue: 2.8x
Non-recurring Revenue: 4.5x
Recurring Revenue: 5x
AviationHighNon-recurring Revenue: 2.4x
Recurring Revenue: 2.7x
Non-recurring Revenue: 3.2x
Recurring Revenue: 4.2x
  • Record customer acquisition during 2020 & 2021 pushed aviation company multiples ~15% higher than pre-pandemic, but recession effects through Q4 2023 tempered that growth, with average multiples now ~8.5% below 2019 levels
  • Businesses where aircraft are owned are closing slower, and at a slightly lower multiple, than businesses involved in the leasing and sale of aircraft
LowNon-recurring Revenue: 2.6x
Recurring Revenue: 2.8x
Non-recurring Revenue: 4.1x
Recurring Revenue: 4.5x
B2B SaaSHighNon-recurring Revenue: 2.6x
Recurring Revenue: 2.8x
Non-recurring Revenue: 4.4x
Recurring Revenue: 6.3x
  • B2B SaaS multiples decreased for $0m-$1m EBITDA companies when interest rates rose in May ’22 and again when equity markets declined in late 2022, but began to recover in Q1 2024
  • Strong interest in AI, specifically GPT-4 and other advanced LLMs, portends that businesses that make use of machine learning technology will see higher valuation multiples
  • Smaller B2B SaaS companies may be valued based on Seller Discretionary Income (SDE) rather than EBITDA, but the two are comparable
  • See our report on SaaS valuation multiples
LowNon-recurring Revenue: 2.7x
Recurring Revenue: 3.1x
Non-recurring Revenue: 4.9x
Recurring Revenue: 8.2x
BiotechHighNon-recurring Revenue: 3.6x
Recurring Revenue: 4.4x
Non-recurring Revenue: 5.8x
Recurring Revenue: 6.7x
  • Biotech companies often aren’t valued based on EBITDA due to the length of the approval process, high cost of development & binary nature of outcome; risk-adjusted NPV or comparables to similar companies are used
LowNon-recurring Revenue: 4x
Recurring Revenue: 4.8x
Non-recurring Revenue: 6.4x
Recurring Revenue: 7.9x
Commercial InsuranceHighNon-recurring Revenue: 3x
Recurring Revenue: 3.3x
Non-recurring Revenue: 3.9x
Recurring Revenue: 4.8x
  • As interest rates rose in Q2 & Q3 2022, PE firms had more limited access to capital, tempering the higher range of multiples commercial insurance firms saw in 2020 & 2021, which had been 40-50% above 2010s levels; however, as of Q1 2024, there is still plenty of M&A opportunity from larger acquirers & PE shops
LowNon-recurring Revenue: 3.4x
Recurring Revenue: 3.8x
Non-recurring Revenue: 4.4x
Recurring Revenue: 5.7x
ConstructionHighNon-recurring Revenue: 1.5x
Recurring Revenue: 2.1x
Non-recurring Revenue: 3.2x
Recurring Revenue: 3.5x
  • EBITDA multiples in construction skew low due to  non-recurring revenue and high costs, but when automation (e.g. modular, prefab) and software play a larger role, multiples rise
LowNon-recurring Revenue: 2x
Recurring Revenue: 2.7x
Non-recurring Revenue: 3x
Recurring Revenue: 4.3x
CybersecurityHighNon-recurring Revenue: 2.8x
Recurring Revenue: 3.3x
Non-recurring Revenue: 4.9x
Recurring Revenue: 6.4x
  • Spurred by the shift to online work, M&A activity in cybersecurity peaked between Q4 2021 and Q1 2023, led by PE & VC firms, with a small number of strategic acquisitions; multiples are slightly lower as of Q1 2024 but remain strong despite deal flow having slowed down
LowNon-recurring Revenue: 3.1x
Recurring Revenue: 3.8x
Non-recurring Revenue: 5.1x
Recurring Revenue: 7.4x
eCommerceHighNon-recurring Revenue: 3.1x
Recurring Revenue: 4.2x
Non-recurring Revenue: 4.8x
Recurring Revenue: 6.2x
  • E-commerce valuations remain strong post-pandemic, with the main limiters being supply chain challenges and “Amazon Fear”; niche specialists getting highest multiples
LowNon-recurring Revenue: 4.2x
Recurring Revenue: 5.5x
Non-recurring Revenue: 5.6x
Recurring Revenue: 7.1x
EngineeringHigh4.6x7.6x
  • Engineering firms have non-recurring cash flow & thus see lower EBITDA multiples; exception is firms with long-term government contracts (provided customer concentration is <40%)
Low5.3x10.7x
EntertainmentHighNon-recurring Revenue: 2x
Recurring Revenue: 2.8x
Non-recurring Revenue: 4.4x
Recurring Revenue: 5.5x
  • Entertainment is a particularly asymmetrical industry in terms of multiples, as a small amount of content receives almost all of consumers’ attention & thus receives the highest M&A interest; thus, go big or go home
LowNon-recurring Revenue: 2.2x
Recurring Revenue: 3.3x
Non-recurring Revenue: 4.4x
Recurring Revenue: 5.9x
Environmental & Clean Energy HighNon-recurring Revenue: 2.3x
Recurring Revenue: 2.6x
Non-recurring Revenue: 4.1x
Recurring Revenue: 4.9x
  • Environmental & clean energy valuations have remained steady through Q1 2024, rising at a slower pace than other industries, with solar, electronics recycling, and waste-to-energy outpacing more traditional businesses in this sector
LowNon-recurring Revenue: 2.8x
Recurring Revenue: 3.2x
Non-recurring Revenue: 5.5x
Recurring Revenue: 6.7x
Financial ServicesHighNon-recurring Revenue: 1.8x
Recurring Revenue: 2.1x
Non-recurring Revenue: 3x
Recurring Revenue: 3.6x
  • Financial advisories and other services firms saw modest increases in EBITDA multiples in 2020-2022, which remained relatively unchanged through Q1 2024 despite less deal flow
LowNon-recurring Revenue: 2x
Recurring Revenue: 2.3x
Non-recurring Revenue: 3.1x
Recurring Revenue: 3.8x
FintechHighNon-recurring Revenue: 3.4x
Recurring Revenue: 3.5x
Non-recurring Revenue: 5.7x
Recurring Revenue: 8.2x
  • Fintech was one of top beneficiaries of pandemic-induced behavior change. Alternative lending, payment platforms, and cryptocurrency businesses saw the greatest rise in valuations. While valuations took a hit after interest rates rose in May 2022, they are still above historic benchmarks
LowNon-recurring Revenue: 3.7x
Recurring Revenue: 4.4x
Non-recurring Revenue: 6.4x
Recurring Revenue: 9.5x
HealthcareHighNon-recurring Revenue: 2.8x
Recurring Revenue: 3x
Non-recurring Revenue: 3.8x
Recurring Revenue: 4.3x
  • Healthcare multiples are increasing, particularly for mid-sized businesses, led by home-based services and high-end professional services (e.g. concierge practices)
LowNon-recurring Revenue: 3x
Recurring Revenue: 3.2x
Non-recurring Revenue: 4.1x
Recurring Revenue: 4.7x
Higher EducationHighN/AN/A
  • Colleges that serve students in person are finally rebounding post-Covid; multiples have seen slight growth over previous years, with organizations offering specialty degrees seeing the highest multiples
Low3.1x5x
Hotels & ResortsHigh4.4x5.9x
  • Hospitality is booming post-pandemic, but competition from short-term rentals remains fierce, leaving valuations steady in the 8x-13x range
Low5.3x7.4x
HVACHighNon-recurring Revenue: 1.2x
Recurring Revenue: 2x
Non-recurring Revenue: 2.9x
Recurring Revenue: 3.2x
  • HVAC multiples were flat through Q1 2022, except with companies in growing areas that have recurring maintenance contracts; but jumped significantly in late 2022 and remain one of the more significant inceases in multiples for an industry through Q1 2024
LowNon-recurring Revenue: 2.4x
Recurring Revenue: 2.5x
Non-recurring Revenue: 3.5x
Recurring Revenue: 3.9x
Industrial IOTHighNon-recurring Revenue: 4.4x
Recurring Revenue: 4.9x
Non-recurring Revenue: 7x
Recurring Revenue: 8.2x
  • Multiples continue to rise in industrial automation & IoT given the imperative of digital transformation and the appetite of larger acquirers to snap up sub-$100M businesses
LowNon-recurring Revenue: 5.3x
Recurring Revenue: 5.7x
Non-recurring Revenue: 8.7x
Recurring Revenue: 10x
IT & Managed ServicesHighNon-recurring Revenue: 2.6x
Recurring Revenue: 3x
Non-recurring Revenue: 4.9x
Recurring Revenue: 5.9x
  • There is strong private equity demand among for MSPs due to the recurring revenue model, but a fragmented space and lack of scale make EBITDA multiples highly variable
LowNon-recurring Revenue: 3.8x
Recurring Revenue: 4.2x
Non-recurring Revenue: 5.7x
Recurring Revenue: 7.1x
Law Firms & Legal ServicesHighNon-recurring Revenue: 1.9x
Recurring Revenue: 2.4x
Non-recurring Revenue: 2.6x
Recurring Revenue: 3.7x
  • EBITDA multiples for law firms haven’t changed much in 2024, with most M&A appetite going to legal tech companies that incorporate generative AI & recurring cash flow businesses
LowNon-recurring Revenue: 2.3x
Recurring Revenue: 2.8x
Non-recurring Revenue: 3x
Recurring Revenue: 4.3x
ManufacturingHighNon-recurring Revenue: 2.7x
Recurring Revenue: 3x
Non-recurring Revenue: 3.8x
Recurring Revenue: 4.1x
  • Small-to-midsize manufacturing company EBITDA multiples have risen slightly in 2024 but largely reverted to the pre-2020 mean of 6-8x –  higher for firms with advanced tech such as 3D printing
LowNon-recurring Revenue: 3.4x
Recurring Revenue: 3.7x
Non-recurring Revenue: 4.5x
Recurring Revenue: 5.4x
Oil & GasHighNon-recurring Revenue: 3x
Recurring Revenue: 3.4x
Non-recurring Revenue: 3.8x
Recurring Revenue: 4.3x
  • Generally, EBITDA multiples in oil & gas haven’t recovered to pre-pandemic levels, with diversified oilfield services & equipment firms faring better than oilfield equipment manufacturers, oilfield services, and contract drilling firms
LowNon-recurring Revenue: 3.1x
Recurring Revenue: 3.7x
Non-recurring Revenue: 4.2x
Recurring Revenue: 4.7x
PharmaceuticalHigh4.3x6.9x
  • Most M&A activity in 2024 targets smaller pharmaceuticals companies with enterprise values under $250M; however, EBITDA multiple trends are somewhat opaque with few deals and little financial disclosure from private companies
Low5.6x8.4x
Real EstateHighNon-recurring Revenue: 1.9x
Recurring Revenue: 2.1x
Non-recurring Revenue: 3.2x
Recurring Revenue: 3.9x
  • In 2024, the highest multiples in real estate come from companies with recurring revenue in growing areas, a guaranteed income stream, or market dominance; lower multiples from from real estate services and development firms
LowNon-recurring Revenue: 2.3x
Recurring Revenue: 2.6x
Non-recurring Revenue: 3.4x
Recurring Revenue: 4.1x
Software DevelopmentHighNon-recurring Revenue: 2.1x
Recurring Revenue: 2.8x
Non-recurring Revenue: 3.4x
Recurring Revenue: 4.1x
  • Software development firms follow the valuation patterns of other professional services firms but trend higher than legal services and MSPs, for instance; multiples have increased slightly since 2020, averaging 3.7x
LowNon-recurring Revenue: 2.5x
Recurring Revenue: 3.2x
Non-recurring Revenue: 3.8x
Recurring Revenue: 4.4x
Staffing & RecruitingHighNon-recurring Revenue: 2.7x
Recurring Revenue: 3.2x
Non-recurring Revenue: 4.4x
Recurring Revenue: 4.9x
  • Staffing & Recruiting firms see higher multiples than other services firms because of the consistency of their revenue, with firms that work with enterprises seeing the top end (~6x)
LowNon-recurring Revenue: 3x
Recurring Revenue: 3.5x
Non-recurring Revenue: 5x
Recurring Revenue: 5.5x
Transportation & LogisticsHigh3.1x4.8x
  • Logistics & transportation companies have seen their multiples grow, then stagnate in 2021-2022 depending on how they fared with supply chain shortages, then rise again in 2024; best sector has been LTL & worst has been asset-based truckload
Low3.5x5.5x

EBITDA Multiples By Industry for $1-3M EBITDA Companies

IndustryKey Employee TurnoverLast 12 Months Revenue Growth Notes
LowHigh
Addiction TreatmentHigh2x4.5x
  • Higher multiples for more in-demand specialties, e.g. autism
  • Residential multiples are ~20% higher than outpatient
  • If the treatment center’s real estate is part of the deal, there is added complexity in calculating the valuation
Low2.7x7x
Aerospace & DefenseHigh6.6x11.4x
  • Multiples hit historic highs in 2021-2022 driven by military needs related to the Russia-Ukraine war
  • Space security & space tourism companies are fastest growing
Low7.1x13.8x
AutomotiveHighNon-recurring Revenue: 3.1x
Recurring Revenue: 3.9x
Non-recurring Revenue: 6x
Recurring Revenue: 7.1x
  • Coming off years of supply shortages, Automotive OEMs are commanding the highest multiples
LowNon-recurring Revenue: 4.6x
Recurring Revenue: 4.8x
Non-recurring Revenue: 7.7x
Recurring Revenue: 8.6x
AviationHighNon-recurring Revenue: 4.1x
Recurring Revenue: 4.6x
Non-recurring Revenue: 5.5x
Recurring Revenue: 7.3x
  • Record customer acquisition during 2020 & 2021 pushed aviation company multiples ~15% higher than pre-pandemic, but recession effects through Q4 2023 tempered that growth, with multiples now ~8.5% below 2019 levels
  • Businesses where aircraft are owned are closing slower, and at a slightly lower multiple, than businesses involved in the leasing and sale of aircraft
LowNon-recurring Revenue: 4.5x
Recurring Revenue: 4.9x
Non-recurring Revenue: 7.1x
Recurring Revenue: 7.8x
B2B SaaSHighNon-recurring Revenue: 4.5x 
Recurring Revenue: 4.8x
Non-recurring Revenue: 7.5x
Recurring Revenue: 10.9x
  • B2B SaaS multiples decreased for $3m-$10m EBITDA companies when interest rates rose in May ’22 and again when equity markets declined in late 2022 – early 2023
  • Strong interest in AI, specifically GPT-4 and other advanced LLMs, portends that businesses that make use of machine learning technology will see higher multiples
  • Smaller B2B SaaS companies may be valued based on Seller Discretionary Income (SDE) rather than EBITDA, but the two are comparable
  • See our report on SaaS valuation multiples
LowNon-recurring Revenue: 4.7x
Recurring Revenue: 5.3x
Non-recurring Revenue: 8.5x
Recurring Revenue: 14.1x
BiotechHighNon-recurring Revenue: 6.2x
Recurring Revenue: 7.6x
Non-recurring Revenue: 10.4x
Recurring Revenue: 11.6x
  • Biotech companies often aren’t valued based on EBITDA due to the length of the approval process, high cost of development & binary nature of outcome; risk-adjusted NPV or comparables to similar  companies are used
LowNon-recurring Revenue: 6.9x
Recurring Revenue: 8.3x
Non-recurring Revenue: 11.1x
Recurring Revenue: 13.7x
Commercial InsuranceHighNon-recurring Revenue: 5.1x
Recurring Revenue: 5.7x
Non-recurring Revenue: 6.8x
Recurring Revenue: 8.2x
  • As interest rates rose in Q2 & Q3 2022, PE firms had more limited access to capital, tempering the higher range of multiples commercial insurance firms saw in 2020 & 2021, which had been 40-50% above 2010s levels; however, as of Q1 2024, there is still plenty of M&A opportunity from larger acquirers & PE shops
LowNon-recurring Revenue: 5.9x
Recurring Revenue: 6.5x
Non-recurring Revenue: 7.5x
Recurring Revenue: 9.9x
ConstructionHighNon-recurring Revenue: 2.5x
Recurring Revenue: 3.6x
Non-recurring Revenue: 5.5x
Recurring Revenue: 6x
  • EBITDA multiples in  construction skew low due to  non-recurring revenue and high costs, but when automation (e.g. modular, prefab) and software play a larger role, multiples rise
LowNon-recurring Revenue: 3.4x
Recurring Revenue: 4.7x
Non-recurring Revenue: 5.1x
Recurring Revenue: 7.4x
CybersecurityHighNon-recurring Revenue: 4.9x
Recurring Revenue: 5.7x
Non-recurring Revenue: 8.4x
Recurring Revenue: 11.1x
  • Spurred by the shift to online work, M&A activity in cybersecurity peaked between Q4 2021 and Q1 2023, led by PE & VC firms, with a small number of strategic acquisitions; multiples are slightly lower as of Q1 2024 but remain strong despite deal flow having slowed down
LowNon-recurring Revenue: 5.3x
Recurring Revenue: 6.5x
Non-recurring Revenue: 8.8x
Recurring Revenue: 12.8x
eCommerceHighNon-recurring Revenue: 5.4x
Recurring Revenue: 7.3x
Non-recurring Revenue: 8.3x
Recurring Revenue: 10.7x
  • E-commerce valuations remain strong post-pandemic, with the main limiters being supply chain challenges and “Amazon Fear”; niche specialists getting highest multiples
LowNon-recurring Revenue: 7.2x
Recurring Revenue: 9.4x
Non-recurring Revenue: 9.6x
Recurring Revenue: 12.3x
EngineeringHigh3.1x5.2x
  • Engineering firms have non-recurring cash flow & thus see lower EBITDA multiples; exception is firms with long-term government contracts (provided customer concentration is <40%)
Low3.6x7.3x
EntertainmentHighNon-recurring Revenue: 3.5x
Recurring Revenue: 4.8x
Non-recurring Revenue: 7.6x
Recurring Revenue: 9.5x
  • Entertainment is a particularly asymmetrical industry in terms of multiples, as a small amount of content receives almost all of consumers’ attention & thus receives the highest M&A interest; thus, go big or go home
LowNon-recurring Revenue: 3.8x
Recurring Revenue: 5.7x
Non-recurring Revenue: 7.6x
Recurring Revenue: 10.1x
Environmental & Clean Energy HighNon-recurring Revenue: 3.9x
Recurring Revenue: 4.5x
Non-recurring Revenue: 7.1x
Recurring Revenue: 8.4x
  • Environmental & clean energy valuations have remained steady through Q1 2024, rising at a slower pace than other industries, with solar, electronics recycling, and waste-to-energy outpacing more traditional businesses in this sector
LowNon-recurring Revenue: 4.9x
Recurring Revenue: 5.6x
Non-recurring Revenue: 9.4x
Recurring Revenue: 11.6x
Financial ServicesHighNon-recurring Revenue: 3.1x
Recurring Revenue: 3.7x
Non-recurring Revenue: 5.1x
Recurring Revenue: 6.2x
  • Financial advisories and other services firms saw modest increases in EBITDA multiples in 2020-2022, which remained relatively unchanged through Q1 2024 despite less deal flow
LowNon-recurring Revenue: 3.5x
Recurring Revenue: 3.9x
Non-recurring Revenue: 5.3x
Recurring Revenue: 6.6x
FintechHighNon-recurring Revenue: 5.8x
Recurring Revenue: 6.1x
Non-recurring Revenue: 9.9x
Recurring Revenue: 14.1x
  • Fintech was one of top beneficiaries of pandemic-induced behavior change. Alternative lending, payment platforms, and cryptocurrency businesses saw the greatest rise in valuations. While valuations took a hit after interest rates rose in May 2022, they are still above historic benchmarks
LowNon-recurring Revenue: 6.4x
Recurring Revenue: 7.5x
Non-recurring Revenue: 11.6x
Recurring Revenue: 16.4x
HealthcareHighNon-recurring Revenue: 4.8x
Recurring Revenue: 5.2x
Non-recurring Revenue: 6.6x
Recurring Revenue: 7.4x
  • Healthcare multiples are increasing, particularly for mid-sized businesses, led by home-based services and high-end professional services (e.g. concierge practices)
LowNon-recurring Revenue: 5.1x
Recurring Revenue: 5.6x
Non-recurring Revenue: 7.1x
Recurring Revenue: 8.1x
Higher EducationHighN/AN/A
  • Colleges that serve students in person are finally rebounding post-Covid; multiples have seen slight growth over previous years, with organizations offering specialty degrees seeing the highest multiples
Low5.3x8.7x
Hotels & ResortsHigh7.5x10.2x
  • Hospitality is booming post-pandemic, but competition from short-term rentals remains fierce, leaving valuations steady in the 8x-13x range
Low9.1x12.8x
HVACHighNon-recurring Revenue: 2.1x
Recurring Revenue: 3.4x
Non-recurring Revenue: 5x
Recurring Revenue: 5.5x
  • HVAC multiples were flat through Q1 2022, except with companies in growing areas that have recurring maintenance contracts; but jumped significantly in late 2022 and remain one of the more significant increases in multiples for an industry through Q1 2024
LowNon-recurring Revenue: 4.1x
Recurring Revenue: 4.3x
Non-recurring Revenue: 6.1x
Recurring Revenue: 6.8x
Industrial IOTHighNon-recurring Revenue: 7.6x
Recurring Revenue: 8.4x
Non-recurring Revenue: 12.5x
Recurring Revenue: 14.1x
  • Multiples continue to rise in industrial automation & IoT given the imperative of digital transformation and the appetite of larger acquirers to snap up sub-$100M businesses
LowNon-recurring Revenue: 9.1x
Recurring Revenue: 9.9x
Non-recurring Revenue: 15.4x
Recurring Revenue: 17.2x
IT & Managed ServicesHighNon-recurring Revenue: 4.5x
Recurring Revenue: 5.1x
Non-recurring Revenue: 8.4x
Recurring Revenue: 10.1x
  • There is strong private equity demand among for MSPs due to the recurring revenue model, but a fragmented space and lack of scale make EBITDA multiples highly variable
LowNon-recurring Revenue: 6.6x
Recurring Revenue: 7.2x
Non-recurring Revenue: 9.8x
Recurring Revenue: 12.2x
Law Firms & Legal ServicesHighNon-recurring Revenue: 3.3x
Recurring Revenue: 4.1x
Non-recurring Revenue: 4.4x
Recurring Revenue: 6.3x
  • EBITDA multiples for law firms haven’t changed much in 2024, with most M&A appetite going to legal tech companies that incorporate generative AI & recurring cash flow businesses
LowNon-recurring Revenue: 3.9x
Recurring Revenue: 4.9x
Non-recurring Revenue: 5.1x
Recurring Revenue: 7.4x
ManufacturingHighNon-recurring Revenue: 4.7x
Recurring Revenue: 5.1x
Non-recurring Revenue: 6.6x
Recurring Revenue: 7.1x
  • Small-to-midsize manufacturing company EBITDA multiples have risen slightly in 2024 but largely reverted to the pre-2020 mean of 6-8x –  higher for firms with advanced tech such as 3D printing
LowNon-recurring Revenue: 5.8x
Recurring Revenue: 6.4x
Non-recurring Revenue: 7.8x
Recurring Revenue: 9.3x
Oil & GasHighNon-recurring Revenue: 5.2x
Recurring Revenue: 5.8x
Non-recurring Revenue: 6.5x
Recurring Revenue: 7.4x
  • Generally, EBITDA multiples in oil & gas haven’t recovered to pre-pandemic levels, with diversified oilfield services & equipment firms faring better than oilfield equipment manufacturers, oilfield services, and contract drilling firms
LowNon-recurring Revenue: 5.4x
Recurring Revenue: 6.3x
Non-recurring Revenue: 7.2x
Recurring Revenue: 8.1x
PharmaceuticalHigh7.4x11.8x
  • Most M&A activity in 2024 is targeting smaller pharmaceuticals companies with enterprise values under $250M; however, EBITDA multiple trends are somewhat opaque with few deals and little financial disclosure from private companies
Low9.3x13.4x
Real EstateHighNon-recurring Revenue: 3.3x
Recurring Revenue: 3.7x
Non-recurring Revenue: 5.5x
Recurring Revenue: 6.7x
  • In 2024, the highest multiples in real estate come from companies with recurring revenue in growing areas, a guaranteed income stream, or market dominance; lower multiples from from real estate services and development firms.
LowNon-recurring Revenue: 3.9x
Recurring Revenue: 4.5x
Non-recurring Revenue: 5.8x
Recurring Revenue: 7.1x
Software DevelopmentHighNon-recurring Revenue: 3.5x
Recurring Revenue: 4.7x
Non-recurring Revenue: 5.5x
Recurring Revenue: 6.6x
  • Software development firms follow the valuation patterns of other professional services firms but trend higher than legal services and MSPs, for instance; multiples have increased slightly since 2020, averaging 5.8x
  • The growing interest in generative AI presents an opportunity for companies that develop in that space to see higher valuations
LowNon-recurring Revenue: 4.1x
Recurring Revenue: 5.6x
Non-recurring Revenue: 6.2x
Recurring Revenue: 7.2x
Staffing & RecruitingHighNon-recurring Revenue: 4.7x
Recurring Revenue: 5.5x
Non-recurring Revenue: 7.5x
Recurring Revenue: 8.4x
  • Staffing & Recruiting firms see higher multiples than other services firms because of the consistency of their revenue, with firms that work with enterprises seeing the top end (~10x)
LowNon-recurring Revenue: 5.2x
Recurring Revenue: 6.1x
Non-recurring Revenue: 8.7x
Recurring Revenue: 9.4x
Transportation & LogisticsHigh5.2x8.2x
  • Logistics & transportation companies have seen their multiples grow, then stagnate in 2021-2022 depending on how they fared with supply chain shortages, and finally rise in 2024; best sector has been LTL & worst has been asset-based truckload
Low5.9x9.4x

EBITDA Multiples By Industry for $3-10M EBITDA Companies

IndustryKey Employee TurnoverLast 12 Months Revenue GrowthNotes
LowHigh
Addiction TreatmentHigh2.4x5.4x
  • Higher multiples for more in-demand specialties, e.g. autism
  • Residential multiples are ~20% higher than outpatient
  • If the treatment center’s real estate is part of the deal, there is added complexity in calculating the valuation
Low3.3x8.5x
Aerospace & DefenseHigh8x13.8x
  • Multiples hit historic highs in 2021-2022 driven by military needs related to the Russia-Ukraine war
  • Space security & space tourism companies are fastest growing
Low8.6x16.7x
AutomotiveHighNon-recurring Revenue: 3.8x
Recurring Revenue: 4.7x
Non-recurring Revenue: 7.3x
Recurring Revenue: 8.6x
  • Coming off years of supply shortages, Automotive OEMs are commanding the highest multiples
LowNon-recurring Revenue: 5.6x
Recurring Revenue: 5.8x
Non-recurring Revenue: 9.3x
Recurring Revenue: 10.4x
AviationHighNon-recurring Revenue: 5x
Recurring Revenue: 5.6x
Non-recurring Revenue: 6.7x
Recurring Revenue: 8.8x
  • Record customer acquisition during 2020 & 2021 pushed aviation company multiples ~15% higher than pre-pandemic, but recession effects through Q4 2023 tempered that growth, with multiples now ~8.5% below 2019 levels
  • Businesses where aircraft are owned are closing slower, and at a slightly lower multiple, than businesses involved in the leasing and sale of aircraft
LowNon-recurring Revenue: 5.4x
Recurring Revenue: 5.9x
Non-recurring Revenue: 8.6x
Recurring Revenue: 9.4x
B2B SaaSHighNon-recurring Revenue: 5.4x
Recurring Revenue: 5.8x
Non-recurring Revenue: 9.1x
Recurring Revenue: 13.2x
  • B2B SaaS multiples decreased for $3m-$10m EBITDA companies when interest rates rose in May ’22 and again when equity markets declined in late 2022, but began to recover in Q1 2024
  • Strong interest in AI, specifically GPT-4 and other advanced LLMs, portends that businesses that make use of machine learning technology will see higher valuation multiples
  • Smaller B2B SaaS companies may be valued based on Seller Discretionary Income (SDE) rather than EBITDA, but the two are comparable
  • See our report on SaaS valuation multiples
LowNon-recurring Revenue: 5.7x
Recurring Revenue: 6.4x
Non-recurring Revenue: 10.3x
Recurring Revenue: 17.1x
BiotechHighNon-recurring Revenue: 7.5x
Recurring Revenue: 9.2x
Non-recurring Revenue: 12.1x
Recurring Revenue: 14x
  • Biotech companies often aren’t valued based on EBITDA due to the length of the approval process, high cost of development & binary nature of outcome; risk-adjusted NPV or comparables to similar  companies are used
LowNon-recurring Revenue: 8.3x
Recurring Revenue: 10x
Non-recurring Revenue: 13.3x
Recurring Revenue: 16.6x
Commercial InsuranceHighNon-recurring Revenue: 6.2x
Recurring Revenue: 6.9x
Non-recurring Revenue: 8.2x
Recurring Revenue: 9.9x
  • As interest rates rose in Q2 & Q3 2022, PE firms had more limited access to capital, tempering the higher range of multiples commercial insurance firms saw in 2020 & 2021, which had been 40-50% above 2010s levels; however, as of Q1 2024, there is still plenty of M&A opportunity from larger acquirers & PE shops
LowNon-recurring Revenue: 7.1x
Recurring Revenue: 7.9x
Non-recurring Revenue: 9.1x
Recurring Revenue: 12x
ConstructionHighNon-recurring Revenue: 3x
Recurring Revenue: 4.4x
Non-recurring Revenue: 6.7x
Recurring Revenue: 7.3x
  • EBITDA multiples in construction skew low due to  non-recurring revenue and high costs, but when automation (e.g. modular, prefab) and software play a larger role, multiples rise
LowNon-recurring Revenue: 4.1x
Recurring Revenue: 5.7x
Non-recurring Revenue: 6.2x
Recurring Revenue: 9x
CybersecurityHighNon-recurring Revenue: 5.9x
Recurring Revenue: 6.9x
Non-recurring Revenue: 10.2x
Recurring Revenue: 13.4x
  • Spurred by the shift to online work, M&A activity in cybersecurity peaked between Q4 2021 and Q1 2023, led by PE & VC firms, with a small number of strategic acquisitions; multiples are slightly lower as of Q1 2024 but remain strong despite deal flow having slowed down
LowNon-recurring Revenue: 6.4x
Recurring Revenue: 7.9x
Non-recurring Revenue: 10.6x
Recurring Revenue: 15.5x
eCommerceHighNon-recurring Revenue: 6.5x
Recurring Revenue: 8.8x
Non-recurring Revenue: 10x
Recurring Revenue: 12.9x
  • E-commerce valuations remain strong post-pandemic, with the main limiters being supply chain challenges and “Amazon Fear”; niche specialists getting highest multiples
LowNon-recurring Revenue: 8.7x
Recurring Revenue: 11.4x
Non-recurring Revenue: 11.6x
Recurring Revenue: 14.9x
EngineeringHigh3.8x6.3x
  • Engineering firms have non-recurring cash flow & thus see lower EBITDA multiples; exception is firms with long-term government contracts (provided customer concentration is <40%)
Low4.4x8.8x
EntertainmentHighNon-recurring Revenue: 4.2x
Recurring Revenue: 5.8x
Non-recurring Revenue: 9.2x
Recurring Revenue: 11.5x
  • Entertainment is a particularly asymmetrical industry in terms of multiples, as a small amount of content receives almost all of consumers’ attention & thus receives the highest M&A interest; thus, go big or go home
LowNon-recurring Revenue: 4.6x
Recurring Revenue: 6.9x
Non-recurring Revenue: 9.2x
Recurring Revenue: 12.2x
Environmental & Clean EnergyHighNon-recurring Revenue: 4.7x
Recurring Revenue: 5.4x
Non-recurring Revenue: 8.6x
Recurring Revenue: 10.2x
  • Environmental & clean energy valuations have remained steady through Q1 2024, rising at a slower pace than other industries, with solar, electronics recycling, and waste-to-energy outpacing more traditional businesses in this sector
LowNon-recurring Revenue: 5.9x
Recurring Revenue: 6.8x
Non-recurring Revenue: 11.4x
Recurring Revenue: 14x
Financial ServicesHighNon-recurring Revenue: 3.8x
Recurring Revenue: 4.5x
Non-recurring Revenue: 6.2x
Recurring Revenue: 7.5x
  • Financial advisories and other services firms saw modest increases in EBITDA multiples in 2020-2022, which remained relatively unchanged through Q1 2024 despite less deal flow
LowNon-recurring Revenue: 4.2x
Recurring Revenue: 4.7x
Non-recurring Revenue: 6.4x
Recurring Revenue: 8x
FintechHighNon-recurring Revenue: 7x
Recurring Revenue: 7.4x
Non-recurring Revenue: 12x
Recurring Revenue: 17.1x
  • Fintech was one of top beneficiaries of pandemic-induced behavior change. Alternative lending, payment platforms, and cryptocurrency businesses saw the greatest rise in valuations. While valuations took a hit after interest rates rose in May 2022, they are still above historic benchmarks
LowNon-recurring Revenue: 7.7x
Recurring Revenue: 9.1x
Non-recurring Revenue: 13.3x
Recurring Revenue: 19.8x
HealthcareHighNon-recurring Revenue: 5.8x
Recurring Revenue: 6.3x
Non-recurring Revenue: 8x
Recurring Revenue: 9x
  • Healthcare multiples are increasing, particularly for mid-sized businesses, led by home-based services and high-end professional services (e.g. concierge practices)
LowNon-recurring Revenue: 6.2x
Recurring Revenue: 6.8x
Non-recurring Revenue: 8.6x
Recurring Revenue: 9.8x
Higher EducationHighN/AN/A
  • Colleges that serve students in person are finally rebounding post-Covid; multiples have seen slight growth over previous years, with organizations offering specialty degrees seeing the highest multiples
Low6.4x10.5x
Hotels & ResortsHigh9.1x12.3x
  • Hospitality is booming post-pandemic, but competition from short-term rentals remains fierce, leaving valuations steady in the 8x-13x range
Low11x15.5x
HVACHighNon-recurring Revenue: 2.5x
Recurring Revenue: 4.1x
Non-recurring Revenue: 6.1x
Recurring Revenue: 6.7x
  • HVAC multiples were flat through Q1 2022, except with companies in growing areas that have recurring maintenance contracts; but jumped significantly in late 2022 and remain one of the more significant inceases in multiples for an industry through Q1 2024
LowNon-recurring Revenue: 5x
Recurring Revenue: 5.2x
Non-recurring Revenue: 7.4x
Recurring Revenue: 8.2x
Industrial IOTHighNon-recurring Revenue: 9.2x
Recurring Revenue: 10.2x
Non-recurring Revenue: 14.5x
Recurring Revenue: 17.1x
  • Multiples continue to rise in industrial automation & IoT given the imperative of digital transformation and the appetite of larger acquirers to snap up sub-$100M businesses
LowNon-recurring Revenue: 11x
Recurring Revenue: 12x
Non-recurring Revenue: 18.2x
Recurring Revenue: 20.8x
IT & Managed ServicesHighNon-recurring Revenue: 5.4x
Recurring Revenue: 6.2x
Non-recurring Revenue: 10.2x
Recurring Revenue: 12.2x
  • There is strong private equity demand among for MSPs due to the recurring revenue model, but a fragmented space and lack of scale make EBITDA multiples highly variable
LowNon-recurring Revenue: 8x
Recurring Revenue: 8.7x
Non-recurring Revenue: 11.9x
Recurring Revenue: 14.8x
Law Firms & Legal ServicesHighNon-recurring Revenue: 4x
Recurring Revenue: 5x
Non-recurring Revenue: 5.3x
Recurring Revenue: 7.6x
  • EBITDA multiples for law firms haven’t changed much in 2024, with most M&A appetite going to legal tech companies that incorporate generative AI & recurring cash flow businesses
LowNon-recurring Revenue: 4.7x
Recurring Revenue: 5.9x
Non-recurring Revenue: 6.2x
Recurring Revenue: 9x
ManufacturingHighNon-recurring Revenue: 5.7x
Recurring Revenue: 6.2x
Non-recurring Revenue: 8x
Recurring Revenue: 8.6x
  • Small-to-midsize manufacturing company EBITDA multiples have risen slightly in 2024 but largely reverted to the pre-2020 mean of 6-8x –  higher for firms with advanced tech such as 3D printing
LowNon-recurring Revenue: 7x
Recurring Revenue: 7.7x
Non-recurring Revenue: 9.4x
Recurring Revenue: 11.3x
Oil & GasHighNon-recurring Revenue: 6.3x
Recurring Revenue: 7x
Non-recurring Revenue: 7.9x
Recurring Revenue: 9x
  • Generally, EBITDA multiples in oil & gas haven’t recovered to pre-pandemic levels, with diversified oilfield services & equipment firms faring better than oilfield equipment manufacturers, oilfield services, and contract drilling firms
LowNon-recurring Revenue: 6.5x
Recurring Revenue: 7.6x
Non-recurring Revenue: 8.7x
Recurring Revenue: 9.8x
PharmaceuticalHigh8.8x14.2x
  • Most M&A activity in 2024 targets smaller pharmaceuticals companies with revenues under $150M; however, EBITDA multiple trends are somewhat opaque with few deals and little financial disclosure from private companies
Low11.2x16.3x
Real EstateHighNon-recurring Revenue: 4x
Recurring Revenue: 4.5x
Non-recurring Revenue: 6.7x
Recurring Revenue: 8.1x
  • In 2024, the highest multiples in real estate come from companies with recurring revenue in growing areas, a guaranteed income stream, or market dominance; lower multiples from from real estate services and development firms
LowNon-recurring Revenue: 4.7x
Recurring Revenue: 5.4x
Non-recurring Revenue: 7x
Recurring Revenue: 8.6x
Software DevelopmentHighNon-recurring Revenue: 4x
Recurring Revenue: 5.7x
Non-recurring Revenue: 6.3x
Recurring Revenue: 7.8x
  • Software development firms follow the valuation patterns of other professional services firms but trend higher than legal services and MSPs, for instance; multiples have increased slightly since 2020, averaging 7.1x
  • The growing interest in generative AI presents an opportunity for companies that develop in that space to see higher valuations
LowNon-recurring Revenue: 5x
Recurring Revenue: 6.7x
Non-recurring Revenue: 7.6x
Recurring Revenue: 8.8x
Staffing & RecruitingHighNon-recurring Revenue: 5.7x
Recurring Revenue: 6.7x
Non-recurring Revenue: 9.1x
Recurring Revenue: 10.2x
  • Staffing & Recruiting firms see higher multiples than other services firms because of the consistency of their revenue, with firms that work with enterprises seeing the top end (~13x)
LowNon-recurring Revenue: 6.3x
Recurring Revenue: 7.4x
Non-recurring Revenue: 10.5x
Recurring Revenue: 11.4x
Transportation & LogisticsHigh6.2x9.8x
  • Logistics & transportation companies have seen their multiples grow, then stagnate in 2021-2022 depending on how they fared with supply chain shortages, then rise again in 2024; best sector has been LTL & worst has been asset-based truckload
Low6.9x11.9x

Increasing Your EBITDA Multiple

High multiples are driven by growth. In addition to providing custom research, our firm drives demand generation by ghostwriting original content for your website like the report you just read. By investing in your website’s thought leadership, you turn your website into a self-sustaining marketing vehicle.

If you’re interested in discussing a partnership, you can contact us here.

PDF Requests, Inquiries, and Questions

If you’d like a copy of this report, would like to feature it in an article, or have a question for us, you can contact us here.

Evan Bailyn

Evan Bailyn is a best-selling author and award-winning speaker on the subjects of SEO and thought leadership. Contact Evan here.