EBITDA Multiples by Industry & Company Size: 2022 Report

Updated May 17, 2022

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 2 years (Q2 2020-Q2 2022) in M&A and private equity publications. 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 an acquirer or investor’s weighting of the above factors, as well as the business’ strategic fit with the acquirer or portfolio.

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

Industry Key Employee Turnover Last 12 Months Revenue Growth  Notes
Low High
Addiction Treatment High 1.2x 2.6x
  • Higher multiples for more in-demand specialties, e.g. autism
  • Residential multiples are ~20% higher than outpatient
Low 1.6x 4.1x
Aerospace & Defense High 3.8x 6.6x
  • 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
Low 4.1x 8x
Automotive High Non-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
Low Non-recurring Revenue: 2.7x
Recurring Revenue: 2.8x
Non-recurring Revenue: 4.5x
Recurring Revenue: 5x
Aviation High Non-recurring Revenue: 2.4x
Recurring Revenue: 2.7x
Non-recurring Revenue: 3.2x
Recurring Revenue: 4.2x
  • Record customer acquisition during 2020 & 2021 will keep aviation company multiples ~15% higher than pre-pandemic
Low Non-recurring Revenue: 2.6x
Recurring Revenue: 2.8x
Non-recurring Revenue: 4.1x
Recurring Revenue: 4.5x
B2B SaaS High Non-recurring Revenue: 2.6x
Recurring Revenue: 2.8x
Non-recurring Revenue: 4.4x
Recurring Revenue: 6.3x
  • B2B SaaS multiples decreased for $3m-$10m EBITDA companies when interest rates rose in May ’22
  • Smaller B2B SaaS companies may be valued based on Seller Discretionary Income (SDE) rather than EBITDA, but the two are comparable
Low Non-recurring Revenue: 2.7x
Recurring Revenue: 3.1x
Non-recurring Revenue: 4.9x
Recurring Revenue: 8.2x
Biotech High Non-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
Low Non-recurring Revenue: 4x
Recurring Revenue: 4.8x
Non-recurring Revenue: 6.4x
Recurring Revenue: 7.9x
Commercial Insurance High Non-recurring Revenue: 3x
Recurring Revenue: 3.3x
Non-recurring Revenue: 3.9x
Recurring Revenue: 4.8x
  • If interest rates stay put after their May ’22 rise and PE firms continue to have good access to capital, we will continue to see this higher range of multiples, which is 40-50% above 2010s levels
Low Non-recurring Revenue: 3.4x
Recurring Revenue: 3.8x
Non-recurring Revenue: 4.4x
Recurring Revenue: 5.7x
Construction High Non-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
Low Non-recurring Revenue: 2x
Recurring Revenue: 2.7x
Non-recurring Revenue: 3x
Recurring Revenue: 4.3x
Cybersecurity High Non-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 cyber continued peaking in Q4 2021, led by PE & VC firms, with a small number of strategic acquisitions; multiples historically high going into 22-23
Low Non-recurring Revenue: 3.1x
Recurring Revenue: 3.8x
Non-recurring Revenue: 5.1x
Recurring Revenue: 7.4x
eCommerce High Non-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
Low Non-recurring Revenue: 4.2x
Recurring Revenue: 5.5x
Non-recurring Revenue: 5.6x
Recurring Revenue: 7.1x
Engineering High 4.6x 7.6x
  • 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%)
Low 5.3x 10.7x
Entertainment High Non-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
Low Non-recurring Revenue: 2.2x
Recurring Revenue: 3.3x
Non-recurring Revenue: 4.4x
Recurring Revenue: 5.9x
Environmental & Clean Energy  High Non-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 Q2 2022, rising at a slower pace than other industries, with solar, electronics recycling, and waste-to-energy outpacing more traditional businesses in this sector
Low Non-recurring Revenue: 2.8x
Recurring Revenue: 3.2x
Non-recurring Revenue: 5.5x
Recurring Revenue: 6.7x
Financial Services High Non-recurring Revenue: 1.8x
Recurring Revenue: 2.1x
Non-recurring Revenue: 3x
Recurring Revenue: 3.6x
  • Financial advisories and other services firms have seen modest increases in EBITDA multiples in 2020-2022
Low Non-recurring Revenue: 2x
Recurring Revenue: 2.3x
Non-recurring Revenue: 3.1x
Recurring Revenue: 3.8x
Fintech High Non-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
Low Non-recurring Revenue: 3.7x
Recurring Revenue: 4.4x
Non-recurring Revenue: 6.4x
Recurring Revenue: 9.5x
Healthcare High Non-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)
Low Non-recurring Revenue: 3x
Recurring Revenue: 3.2x
Non-recurring Revenue: 4.1x
Recurring Revenue: 4.7x
Higher Education High N/A N/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
Low 3.1x 5x
Hotels & Resorts High 4.4x 5.9x
  • Hospitality is booming post-pandemic, but competition from short-term rentals remains fierce, leaving valuations steady in the 8x-13x range
Low 5.3x 7.4x
HVAC High Non-recurring Revenue: 1.2x
Recurring Revenue: 2x
Non-recurring Revenue: 2.9x
Recurring Revenue: 3.2x
  • HVAC multiples have remained flat, except with companies in growing areas that have recurring maintenance contracts
Low Non-recurring Revenue: 2.4x
Recurring Revenue: 2.5x
Non-recurring Revenue: 3.5x
Recurring Revenue: 3.9x
Industrial IOT High Non-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
Low Non-recurring Revenue: 5.3x
Recurring Revenue: 5.7x
Non-recurring Revenue: 8.7x
Recurring Revenue: 10x
IT & Managed Services High Non-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
Low Non-recurring Revenue: 3.8x
Recurring Revenue: 4.2x
Non-recurring Revenue: 5.7x
Recurring Revenue: 7.1x
Law Firms & Legal Services High Non-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 2022, with most M&A appetite going to legal tech & other recurring cash flow businesses
Low Non-recurring Revenue: 2.3x
Recurring Revenue: 2.8x
Non-recurring Revenue: 3x
Recurring Revenue: 4.3x
Manufacturing High Non-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 2022 but largely reverted to the pre-2020 mean of 6-8x –  higher for firms with advanced tech such as 3D printing
Low Non-recurring Revenue: 3.4x
Recurring Revenue: 3.7x
Non-recurring Revenue: 4.5x
Recurring Revenue: 5.4x
Oil & Gas High Non-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
Low Non-recurring Revenue: 3.1x
Recurring Revenue: 3.7x
Non-recurring Revenue: 4.2x
Recurring Revenue: 4.7x
Pharmaceutical High 4.2x 6.7x
  • Most M&A activity in 2021-2022 targeted smaller pharmaceuticals companies with revenues under $150M; however, EBITDA multiple trends are somewhat opaque with few deals and little financial disclosure from private companies
Low 5.3x 7.7x
Real Estate High Non-recurring Revenue: 1.9x
Recurring Revenue: 2.1x
Non-recurring Revenue: 3.2x
Recurring Revenue: 3.9x
  • In 2022, 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
Low Non-recurring Revenue: 2.3x
Recurring Revenue: 2.6x
Non-recurring Revenue: 3.4x
Recurring Revenue: 4.1x
Software Development High Non-recurring Revenue: 1.9x
Recurring Revenue: 2.7x
Non-recurring Revenue: 3x
Recurring Revenue: 3.7x
  • 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
Low Non-recurring Revenue: 2.4x
Recurring Revenue: 3.1x
Non-recurring Revenue: 3.6x
Recurring Revenue: 4x
Staffing & Recruiting High Non-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 (~10x)
Low Non-recurring Revenue: 3x
Recurring Revenue: 3.5x
Non-recurring Revenue: 5x
Recurring Revenue: 5.5x
Transportation & Logistics High 3x 4.6x
  • Logistics & transportation companies have seen their multiples grow, then stagnate, over the past 2 years, depending on how they’ve fared with supply chain shortages; best sector has been LTL & worst asset-based truckload
Low 3.3x 5.3x

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

Industry Key Employee Turnover Last 12 Months Revenue Growth  Notes
Low High
Addiction Treatment High 2x 4.5x
  • Higher multiples for more in-demand specialties, e.g. autism
  • Residential multiples are ~20% higher than outpatient
Low 2.7x 7x
Aerospace & Defense High 6.6x 11.4x
  • 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
Low 7.1x 13.8x
Automotive High Non-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
Low Non-recurring Revenue: 4.6x
Recurring Revenue: 4.8x
Non-recurring Revenue: 7.7x
Recurring Revenue: 8.6x
Aviation High Non-recurring Revenue: 4.1x
Recurring Revenue: 4.6x
Non-recurring Revenue: 5.5x
Recurring Revenue: 7.3x
  • Record customer acquisition during 2020 & 2021 will keep aviation company multiples ~15% higher than pre-pandemic
Low Non-recurring Revenue: 4.5x
Recurring Revenue: 4.9x
Non-recurring Revenue: 7.1x
Recurring Revenue: 7.8x
B2B SaaS High Non-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
  • Smaller B2B SaaS companies may be valued based on Seller Discretionary Income (SDE) rather than EBITDA, but the two are comparable
Low Non-recurring Revenue: 4.7x
Recurring Revenue: 5.3x
Non-recurring Revenue: 8.5x
Recurring Revenue: 14.1x
Biotech High Non-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
Low Non-recurring Revenue: 6.9x
Recurring Revenue: 8.3x
Non-recurring Revenue: 11.1x
Recurring Revenue: 13.7x
Commercial Insurance High Non-recurring Revenue: 5.1x
Recurring Revenue: 5.7x
Non-recurring Revenue: 6.8x
Recurring Revenue: 8.2x
  • If interest rates stay put after their May ’22 rise and PE firms continue to have good access to capital, we will continue to see this higher range of multiples, which is 40-50% above 2010s levels
Low Non-recurring Revenue: 5.9x
Recurring Revenue: 6.5x
Non-recurring Revenue: 7.5x
Recurring Revenue: 9.9x
Construction High Non-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
Low Non-recurring Revenue: 3.4x
Recurring Revenue: 4.7x
Non-recurring Revenue: 5.1x
Recurring Revenue: 7.4x
Cybersecurity High Non-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 cyber continued peaking in Q4 2021, led by PE & VC firms, with a small number of strategic acquisitions; multiples historically high going into 22-23
Low Non-recurring Revenue: 5.3x
Recurring Revenue: 6.5x
Non-recurring Revenue: 8.8x
Recurring Revenue: 12.8x
eCommerce High Non-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
Low Non-recurring Revenue: 7.2x
Recurring Revenue: 9.4x
Non-recurring Revenue: 9.6x
Recurring Revenue: 12.3x
Engineering High 3.1x 5.2x
  • 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%)
Low 3.6x 7.3x
Entertainment High Non-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
Low Non-recurring Revenue: 3.8x
Recurring Revenue: 5.7x
Non-recurring Revenue: 7.6x
Recurring Revenue: 10.1x
Environmental & Clean Energy  High Non-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 2022, rising at a slower pace than other industries, with solar, electronics recycling, and waste-to-energy outpacing more traditional businesses in this sector
Low Non-recurring Revenue: 4.9x
Recurring Revenue: 5.6x
Non-recurring Revenue: 9.4x
Recurring Revenue: 11.6x
Financial Services High Non-recurring Revenue: 3.1x
Recurring Revenue: 3.7x
Non-recurring Revenue: 5.1x
Recurring Revenue: 6.2x
  • Financial advisories and other services firms have seen modest increases in EBITDA multiples in 2020-2022
Low Non-recurring Revenue: 3.5x
Recurring Revenue: 3.9x
Non-recurring Revenue: 5.3x
Recurring Revenue: 6.6x
Fintech High Non-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
Low Non-recurring Revenue: 6.4x
Recurring Revenue: 7.5x
Non-recurring Revenue: 11.6x
Recurring Revenue: 16.4x
Healthcare High Non-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)
Low Non-recurring Revenue: 5.1x
Recurring Revenue: 5.6x
Non-recurring Revenue: 7.1x
Recurring Revenue: 8.1x
Higher Education High N/A N/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
Low 5.3x 8.7x
Hotels & Resorts High 7.5x 10.2x
  • Hospitality is booming post-pandemic, but competition from short-term rentals remains fierce, leaving valuations steady in the 8x-13x range
Low 9.1x 12.8x
HVAC High Non-recurring Revenue: 2.1x
Recurring Revenue: 3.4x
Non-recurring Revenue: 5x
Recurring Revenue: 5.5x
  • HVAC multiples have remained flat, except with companies in growing areas that have recurring maintenance contracts
Low Non-recurring Revenue: 4.1x
Recurring Revenue: 4.3x
Non-recurring Revenue: 6.1x
Recurring Revenue: 6.8x
Industrial IOT High Non-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
Low Non-recurring Revenue: 9.1x
Recurring Revenue: 9.9x
Non-recurring Revenue: 15.4x
Recurring Revenue: 17.2x
IT & Managed Services High Non-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
Low Non-recurring Revenue: 6.6x
Recurring Revenue: 7.2x
Non-recurring Revenue: 9.8x
Recurring Revenue: 12.2x
Law Firms & Legal Services High Non-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 2022, with most M&A appetite going to legal tech & other recurring cash flow businesses
Low Non-recurring Revenue: 3.9x
Recurring Revenue: 4.9x
Non-recurring Revenue: 5.1x
Recurring Revenue: 7.4x
Manufacturing High Non-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 2022 but largely reverted to the pre-2020 mean of 6-8x –  higher for firms with advanced tech such as 3D printing
Low Non-recurring Revenue: 5.8x
Recurring Revenue: 6.4x
Non-recurring Revenue: 7.8x
Recurring Revenue: 9.3x
Oil & Gas High Non-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
Low Non-recurring Revenue: 5.4x
Recurring Revenue: 6.3x
Non-recurring Revenue: 7.2x
Recurring Revenue: 8.1x
Pharmaceutical High 7.2x 11.6x
  • Most M&A activity in 2021-2022 targeted smaller pharmaceuticals companies with revenues under $150M; however, EBITDA multiple trends are somewhat opaque with few deals and little financial disclosure from private companies
Low 9.1x 13.2x
Real Estate High Non-recurring Revenue: 3.3x
Recurring Revenue: 3.7x
Non-recurring Revenue: 5.5x
Recurring Revenue: 6.7x
  • In 2022, 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.
Low Non-recurring Revenue: 3.9x
Recurring Revenue: 4.5x
Non-recurring Revenue: 5.8x
Recurring Revenue: 7.1x
Software Development High Non-recurring Revenue: 3.3x
Recurring Revenue: 4.6x
Non-recurring Revenue: 5.1x
Recurring Revenue: 6.3x
  • 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
Low Non-recurring Revenue: 4.1x
Recurring Revenue: 5.4x
Non-recurring Revenue: 6.2x
Recurring Revenue: 6.9x
Staffing & Recruiting High Non-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)
Low Non-recurring Revenue: 5.2x
Recurring Revenue: 6.1x
Non-recurring Revenue: 8.7x
Recurring Revenue: 9.4x
Transportation & Logistics High 5.1x 8x
  • Logistics & transportation companies have seen their multiples grow, then stagnate, over the past 2 years, depending on how they’ve fared with supply chain shortages; best sector has been LTL & worst asset-based truckload
Low 5.7x 9.2x

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

Industry Key Employee Turnover Last 12 Months Revenue Growth Notes
Low High
Addiction Treatment High 2.4x 5.4x
  • Higher multiples for more in-demand specialties, e.g. autism
  • Residential multiples are ~20% higher than outpatient
Low 3.3x 8.5x
Aerospace & Defense High 8x 13.8x
  • 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
Low 8.6x 16.7x
Automotive High Non-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
Low Non-recurring Revenue: 5.6x
Recurring Revenue: 5.8x
Non-recurring Revenue: 9.3x
Recurring Revenue: 10.4x
Aviation High Non-recurring Revenue: 5x
Recurring Revenue: 5.6x
Non-recurring Revenue: 6.7x
Recurring Revenue: 8.8x
  • Record customer acquisition during 2020 & 2021 will keep aviation company multiples ~15% higher than pre-pandemic
Low Non-recurring Revenue: 5.4x
Recurring Revenue: 5.9x
Non-recurring Revenue: 8.6x
Recurring Revenue: 9.4x
B2B SaaS High Non-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.
  • Smaller B2B SaaS companies may be valued based on Seller Discretionary Income (SDE) rather than EBITDA, but the two are comparable
Low Non-recurring Revenue: 5.7x
Recurring Revenue: 6.4x
Non-recurring Revenue: 10.3x
Recurring Revenue: 17.1x
Biotech High Non-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
Low Non-recurring Revenue: 8.3x
Recurring Revenue: 10x
Non-recurring Revenue: 13.3x
Recurring Revenue: 16.6x
Commercial Insurance High Non-recurring Revenue: 6.2x
Recurring Revenue: 6.9x
Non-recurring Revenue: 8.2x
Recurring Revenue: 9.9x
  • If interest rates stay put after their May ’22 rise and PE firms continue to have good access to capital, we will continue to see this higher range of multiples, which is 40-50% above 2010s levels
Low Non-recurring Revenue: 7.1x
Recurring Revenue: 7.9x
Non-recurring Revenue: 9.1x
Recurring Revenue: 12x
Construction High Non-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
Low Non-recurring Revenue: 4.1x
Recurring Revenue: 5.7x
Non-recurring Revenue: 6.2x
Recurring Revenue: 9x
Cybersecurity High Non-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 cyber continued peaking in Q4 2021, led by PE & VC firms, with a small number of strategic acquisitions; multiples historically high going into 22-23
Low Non-recurring Revenue: 6.4x
Recurring Revenue: 7.9x
Non-recurring Revenue: 10.6x
Recurring Revenue: 15.5x
eCommerce High Non-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
Low Non-recurring Revenue: 8.7x
Recurring Revenue: 11.4x
Non-recurring Revenue: 11.6x
Recurring Revenue: 14.9x
Engineering High 3.8x 6.3x
  • 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%)
Low 4.4x 8.8x
Entertainment High Non-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
Low Non-recurring Revenue: 4.6x
Recurring Revenue: 6.9x
Non-recurring Revenue: 9.2x
Recurring Revenue: 12.2x
Environmental & Clean Energy High Non-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 2022, rising at a slower pace than other industries, with solar, electronics recycling, and waste-to-energy outpacing more traditional businesses in this sector
Low Non-recurring Revenue: 5.9x
Recurring Revenue: 6.8x
Non-recurring Revenue: 11.4x
Recurring Revenue: 14x
Financial Services High Non-recurring Revenue: 3.8x
Recurring Revenue: 4.5x
Non-recurring Revenue: 6.2x
Recurring Revenue: 7.5x
  • Financial advisories and other services firms have seen modest increases in EBITDA multiples in 2020-2022
Low Non-recurring Revenue: 4.2x
Recurring Revenue: 4.7x
Non-recurring Revenue: 6.4x
Recurring Revenue: 8x
Fintech High Non-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
Low Non-recurring Revenue: 7.7x
Recurring Revenue: 9.1x
Non-recurring Revenue: 13.3x
Recurring Revenue: 19.8x
Healthcare High Non-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)
Low Non-recurring Revenue: 6.2x
Recurring Revenue: 6.8x
Non-recurring Revenue: 8.6x
Recurring Revenue: 9.8x
Higher Education High N/A N/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
Low 6.4x 10.5x
Hotels & Resorts High 9.1x 12.3x
  • Hospitality is booming post-pandemic, but competition from short-term rentals remains fierce, leaving valuations steady in the 8x-13x range
Low 11x 15.5x
HVAC High Non-recurring Revenue: 2.5x
Recurring Revenue: 4.1x
Non-recurring Revenue: 6.1x
Recurring Revenue: 6.7x
  • HVAC multiples have remained flat, except with companies in growing areas that have recurring maintenance contracts
Low Non-recurring Revenue: 5x
Recurring Revenue: 5.2x
Non-recurring Revenue: 7.4x
Recurring Revenue: 8.2x
Industrial IOT High Non-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
Low Non-recurring Revenue: 11x
Recurring Revenue: 12x
Non-recurring Revenue: 18.2x
Recurring Revenue: 20.8x
IT & Managed Services High Non-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
Low Non-recurring Revenue: 8x
Recurring Revenue: 8.7x
Non-recurring Revenue: 11.9x
Recurring Revenue: 14.8x
Law Firms & Legal Services High Non-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 2022, with most M&A appetite going to legal tech & other recurring cash flow businesses
Low Non-recurring Revenue: 4.7x
Recurring Revenue: 5.9x
Non-recurring Revenue: 6.2x
Recurring Revenue: 9x
Manufacturing High Non-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 2022 but largely reverted to the pre-2020 mean of 6-8x –  higher for firms with advanced tech such as 3D printing
Low Non-recurring Revenue: 7x
Recurring Revenue: 7.7x
Non-recurring Revenue: 9.4x
Recurring Revenue: 11.3x
Oil & Gas High Non-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
Low Non-recurring Revenue: 6.5x
Recurring Revenue: 7.6x
Non-recurring Revenue: 8.7x
Recurring Revenue: 9.8x
Pharmaceutical High 8.7x 14x
  • Most M&A activity in 2021-2022 targeted smaller pharmaceuticals companies with revenues under $150M; however, EBITDA multiple trends are somewhat opaque with few deals and little financial disclosure from private companies
Low 11x 16x
Real Estate High Non-recurring Revenue: 4x
Recurring Revenue: 4.5x
Non-recurring Revenue: 6.7x
Recurring Revenue: 8.1x
  • In 2022, 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
Low Non-recurring Revenue: 4.7x
Recurring Revenue: 5.4x
Non-recurring Revenue: 7x
Recurring Revenue: 8.6x
Software Development High Non-recurring Revenue: 4x
Recurring Revenue: 5.6x
Non-recurring Revenue: 6.2x
Recurring Revenue: 7.6x
  • 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
Low Non-recurring Revenue: 5x
Recurring Revenue: 6.5x
Non-recurring Revenue: 7.5x
Recurring Revenue: 8.3x
Staffing & Recruiting High Non-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 (~10x)
Low Non-recurring Revenue: 6.3x
Recurring Revenue: 7.4x
Non-recurring Revenue: 10.5x
Recurring Revenue: 11.4x
Transportation & Logistics High 6.2x 9.7x
  • Logistics & transportation companies have seen their multiples grow, then stagnate, over the past 2 years, depending on how they’ve fared with supply chain shortages; best sector has been LTL & worst asset-based truckload
Low 6.9x 11.1x

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.

Recent Posts