Main Street businesses recently sold for about 2.7 times SDE on average, while private equity deals between $10 million and $50 million traded near 6.8 times EBITDA. Your industry sets the range, and your risks and growth decide where you land inside it.
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Most small businesses sell for about 2 to 4 times seller's discretionary earnings (SDE), and the industry you are in moves that multiple more than almost anything else: car washes have averaged 4.87x SDE while nail salons averaged 1.74x. Larger companies with a management team are priced on EBITDA instead, and in the lower middle market they have recently traded at roughly 6x to 8x.
Below are the multiples for 114 small business industries from the latest BizBuySell data, EBITDA multiples for larger private companies, why the sources disagree with each other, and how to turn any of these figures into a realistic valuation for your own company. Every figure is sourced at the bottom of the page.
The short answer: multiples by company size
Before industry, size sets the playing field. A business earning $150,000 a year and one earning $15 million are not priced the same way, even in the same industry.
| Who is buying and selling | Typical metric | Recent multiple | Source |
|---|---|---|---|
| Main Street businesses (all industries) | SDE | 2.7x average; 0.7x revenue | BizBuySell Insight Report, Q2 2026 |
| Main Street businesses (closed deals database) | SDE | 1.92x median in 2025 (2.18x in 2023) | BIZCOMPS, via BVR |
| Main Street, by revenue size (2025) | SDE | 1.52x under $300K sales; 1.61x at $300K to $700K; 2.16x above $700K | BIZCOMPS, via BVR |
| Private equity deals, $10M to $50M enterprise value | EBITDA | About 6.8x | GF Data, via Mercer Capital Q3 2026 |
| Private equity deals, $50M to $250M enterprise value | EBITDA | About 7.6x | GF Data, via Mercer Capital Q3 2026 |
| US public companies (total market) | EV/EBITDA | 19.73x (positive-EBITDA firms) | Damodaran, NYU Stern, January 2026 |
The jump from the top of that table to the bottom is the most important thing to understand about multiples. Public company multiples describe huge, liquid, diversified businesses. They are not a benchmark for a 12-person contractor, and anyone who quotes you one for your company is selling something.
SDE, EBITDA or revenue: which multiple applies to you?
A multiple is only meaningful next to the profit figure it was built on. Mixing them up is the most common way owners overvalue (or undervalue) their company.
- SDE multiple. Used for owner-operated businesses, usually under about $1 million in earnings. SDE adds one owner's full pay and perks back to profit. This is what brokers and SBA lenders use on Main Street.
- EBITDA multiple. Used once the business has a manager in the owner's seat. EBITDA keeps a market salary for that role as an expense, so it is smaller than SDE, and the multiple applied to it is higher.
- Revenue multiple. A rough shortcut. It ignores margins, so two companies with the same sales and very different profit get the same answer. Useful as a sanity check, not as a valuation. See revenue multiple vs EBITDA multiple for the full comparison.
Not sure how to calculate SDE or which add-backs count? Start with our list of 40 SDE and EBITDA add-backs.
Business valuation multiples by industry (114 industries)
These are average multiples of reported sale price to SDE (earnings) and to gross revenue, for businesses sold through BizBuySell from Q3 2021 through Q2 2026. BizBuySell updates the table twice a year and describes the figures as relative indicators, not a valuation of any specific business.
| Industry | SDE multiple | Revenue multiple |
|---|---|---|
| Automotive and Boat | ||
| Auto Repair and Service Shops | 2.85x | 0.65x |
| Car Dealerships | 2.98x | 0.41x |
| Car Washes | 4.87x | 1.96x |
| Equipment Rental and Dealers | 3.17x | 0.91x |
| Gas Stations | 3.78x | 0.52x |
| Junk and Salvage Yards | 4.11x | 1.07x |
| Marine/Boat Service and Dealers | 2.94x | 0.68x |
| Towing Companies | 3.28x | 0.95x |
| Truck Stops | 3.69x | 0.71x |
| Beauty and Personal Care | ||
| Hair Salons and Barber Shops | 2.10x | 0.52x |
| Massage Businesses | 2.21x | 0.48x |
| Nail Salons | 1.74x | 0.41x |
| Spas | 2.31x | 0.63x |
| Tanning Salons | 2.24x | 0.52x |
| Building and Construction | ||
| Building Material and Hardware Stores | 3.28x | 0.59x |
| Concrete Businesses | 2.54x | 0.61x |
| Electrical and Mechanical Contracting | 2.77x | 0.63x |
| Heavy Construction | 2.78x | 0.62x |
| HVAC Businesses | 2.83x | 0.60x |
| Plumbing Businesses | 2.61x | 0.69x |
| Communication and Media | ||
| Magazines and Newspapers | 2.23x | 0.74x |
| Production Companies | 2.71x | 1.24x |
| Education and Children | ||
| Day Care and Child Care Centers | 3.28x | 0.88x |
| Preschools | 3.09x | 0.89x |
| Schools | 2.63x | 0.85x |
| Entertainment and Recreation | ||
| Art Galleries | 2.07x | 0.58x |
| Banquet Halls | 2.75x | 0.96x |
| Bowling Alleys | 4.07x | 1.08x |
| Casinos | 2.89x | 1.87x |
| Golf Courses and Services | 3.03x | 0.83x |
| Marinas and Fishing | 3.83x | 1.03x |
| Nightclubs and Theaters | 3.83x | 0.77x |
| Financial Services | ||
| Accounting and Tax Practices | 2.27x | 1.08x |
| Banking and Loan Businesses | 2.54x | 0.78x |
| Check Cashing Businesses | 1.76x | 0.87x |
| Insurance Agencies | 2.87x | 1.52x |
| Food and Restaurants | ||
| Bakeries | 2.44x | 0.51x |
| Bars, Pubs and Taverns | 2.76x | 0.51x |
| Breweries | 3.34x | 0.52x |
| Coffee Shops and Cafes | 2.27x | 0.47x |
| Donut Shops | 2.02x | 0.51x |
| Food Trucks | 2.03x | 0.55x |
| Health Food and Nutrition | 2.50x | 0.65x |
| Ice Cream and Frozen Yogurt Shops | 2.48x | 0.57x |
| Juice Bars | 2.16x | 0.45x |
| Restaurants | 2.18x | 0.39x |
| Health Care and Fitness | ||
| Assisted Living and Nursing Homes | 4.30x | 1.35x |
| Dance, Pilates, and Yoga Studios | 2.16x | 0.66x |
| Dental Practices | 2.75x | 0.76x |
| Gyms and Fitness Centers | 2.54x | 0.70x |
| Home Health Care Businesses | 3.00x | 0.63x |
| Medical Practices | 2.39x | 0.73x |
| Manufacturing | ||
| Auto, Boat and Aircraft Manufacturers | 3.44x | 0.79x |
| Chemical and Related Product Manufacturers | 3.36x | 0.98x |
| Clothing and Fabric Manufacturers | 2.76x | 0.56x |
| Electronic and Electrical Equipment Manufacturers | 3.03x | 0.81x |
| Energy and Petroleum Production | 3.44x | 0.55x |
| Food and Related Product Manufacturers | 2.70x | 0.63x |
| Furniture and Fixture Manufacturers | 2.78x | 0.61x |
| Glass, Stone, and Concrete Manufacturers | 2.86x | 0.60x |
| Industrial and Commercial Machinery Manufacturers | 3.56x | 0.77x |
| Lumber and Wood Products Manufacturers | 3.29x | 0.64x |
| Machine Shops and Tool Manufacturers | 3.51x | 0.89x |
| Medical Device and Product Manufacturers | 3.01x | 0.84x |
| Metal Product Manufacturers | 3.27x | 0.80x |
| Packaging Businesses | 2.85x | 0.65x |
| Paper Manufacturers and Printing | 2.59x | 0.61x |
| Rubber and Plastic Products Manufacturers | 4.24x | 1.01x |
| Sign Manufacturers and Businesses | 2.61x | 0.65x |
| Online and Technology | ||
| Cell Phone and Computer Repair and Service | 1.88x | 0.47x |
| Graphic and Web Design | 2.72x | 1.05x |
| IT and Software Services | 3.22x | 1.08x |
| Software and App Companies | 3.25x | 1.66x |
| Websites and Ecommerce | 3.37x | 1.06x |
| Pet Services | ||
| Dog Daycare and Boarding | 3.27x | 1.08x |
| Pet Grooming | 2.30x | 0.63x |
| Pet Stores and Supply | 2.63x | 0.50x |
| Retail | ||
| Bike Shops | 2.65x | 0.45x |
| Clothing and Accessory Stores | 2.32x | 0.53x |
| Convenience Stores | 2.41x | 0.40x |
| Dollar Stores | 1.46x | 0.35x |
| Flower Shops | 2.04x | 0.48x |
| Furniture and Furnishings Stores | 2.82x | 0.57x |
| Grocery Stores and Supermarkets | 2.68x | 0.35x |
| Jewelry Stores | 2.13x | 0.57x |
| Liquor Stores | 3.39x | 0.50x |
| Nursery and Garden Centers | 3.28x | 0.71x |
| Pawn Shops | 2.63x | 0.81x |
| Pharmacies | 2.85x | 0.41x |
| Smoke Shops | 2.00x | 0.48x |
| Vending Machine Businesses | 2.30x | 1.19x |
| Service Businesses | ||
| Architecture and Engineering Firms | 2.63x | 0.76x |
| Catering Companies | 2.07x | 0.45x |
| Cleaning Businesses | 2.25x | 0.72x |
| Commercial Laundry Businesses | 2.94x | 1.21x |
| Dry Cleaners | 2.11x | 0.77x |
| Funeral Homes | 4.28x | 1.67x |
| Landscaping and Yard Service | 2.49x | 0.72x |
| Laundromats and Coin Laundry | 3.70x | 1.33x |
| Legal Services and Law Firms | 1.97x | 0.77x |
| Locksmith Businesses | 2.35x | 0.75x |
| Medical Billing Businesses | 3.92x | 1.37x |
| Pest Control Businesses | 2.46x | 1.01x |
| Property Management Businesses | 2.66x | 0.92x |
| Security Businesses | 2.86x | 0.87x |
| Staffing Agencies | 2.66x | 0.66x |
| Waste Management and Recycling | 3.25x | 0.93x |
| Transportation and Storage | ||
| Delivery, Freight and Service Routes | 1.75x | 0.63x |
| Limo and Passenger Transportation | 2.49x | 0.81x |
| Moving and Shipping Businesses | 2.52x | 0.63x |
| Storage Facilities and Warehouses | 3.41x | 0.99x |
| Trucking Companies | 3.00x | 0.66x |
| Wholesale and Distributors | ||
| Durable Goods Wholesalers and Distributors | 3.05x | 0.60x |
| Nondurable Goods Wholesalers and Distributors | 2.89x | 0.49x |
The median of the 114 industry averages is about 2.76x SDE, and 79 of the 114 industries sit between 2.2x and 3.4x. That narrow band is why where you land inside it matters so much: on $400,000 of SDE, the gap between 2.2x and 3.4x is $480,000.
The 10 highest-multiple small business industries
| Rank | Industry | Avg. SDE multiple |
|---|---|---|
| 1 | Car Washes | 4.87x |
| 2 | Assisted Living and Nursing Homes | 4.30x |
| 3 | Funeral Homes | 4.28x |
| 4 | Rubber and Plastic Products Manufacturers | 4.24x |
| 5 | Junk and Salvage Yards | 4.11x |
| 6 | Bowling Alleys | 4.07x |
| 7 | Medical Billing Businesses | 3.92x |
| 8 | Marinas and Fishing | 3.83x |
| 9 | Nightclubs and Theaters | 3.83x |
| 10 | Gas Stations | 3.78x |
Look at what these have in common. Most own hard assets that are included in the price (wash equipment, salvage inventory, lanes, presses), and many earn repeat or contracted revenue that does not depend on the owner's personal relationships. Medical billing is the clearest example: monthly contracts with practices, low equipment needs, and work a trained team can do without the founder.
The 10 lowest-multiple small business industries
| Rank | Industry | Avg. SDE multiple |
|---|---|---|
| 1 | Dollar Stores | 1.46x |
| 2 | Nail Salons | 1.74x |
| 3 | Delivery, Freight and Service Routes | 1.75x |
| 4 | Check Cashing Businesses | 1.76x |
| 5 | Cell Phone and Computer Repair and Service | 1.88x |
| 6 | Legal Services and Law Firms | 1.97x |
| 7 | Smoke Shops | 2.00x |
| 8 | Donut Shops | 2.02x |
| 9 | Food Trucks | 2.03x |
| 10 | Flower Shops | 2.04x |
The low end is dominated by businesses where the customer relationship sits with one person (law firms, nail salons, solo repair shops), where competition is easy to enter, or where the buyer is mostly buying a job. A buyer pays less for income that might walk out the door with the seller.
EBITDA multiples for larger private companies
Once a business has a management team and earns a few million dollars or more, buyers shift to EBITDA. GF Data, which collects closed private equity deals, shows this by sector for deals of roughly $10 million to $250 million (as summarized in Mercer Capital's Q3 2026 transactions report):
| Sector | Recent EBITDA multiple | Direction |
|---|---|---|
| Healthcare services | 7.7x | Down from 8.5x in 2025 |
| Business services | 7.5x | Holding steady |
| Manufacturing | 7.1x | Up from 6.7x in 2025 |
| Technology | 5.7x | Down from 6.7x in 2025 |
For comparison, US public companies in January 2026 traded at much higher EV/EBITDA multiples (positive-EBITDA firms, Damodaran): building materials 11.61x, trucking 10.41x, healthcare support services 11.17x, business and consumer services 14.26x, engineering and construction 17.18x, and system and application software 24.48x. The gap between these and the private figures is the price of size, liquidity and diversification. A private company does not get public multiples by being in the same industry.
Why sources disagree (and which one to trust)
Search for your industry's multiple and you will find figures that differ by a full turn or more. Usually they are all correct; they are just measuring different things.
- Average vs. median. BizBuySell reports averages, which a few big sales can pull up. BIZCOMPS reports medians, which is one reason its 2025 figure (1.92x SDE) is lower than BizBuySell's recent average (2.7x).
- Asking vs. sold. Asking prices run higher than closing prices. Use sold data when you can.
- SDE vs. EBITDA. A 3x SDE multiple and a 4x EBITDA multiple can describe the same price for the same company.
- What is included. Some databases exclude inventory and real estate from the sale price; others include them. Most small business sales assume cash-free, debt-free.
- Time window. BizBuySell's industry table covers five years of sales; quarterly reports cover three months. Multiples have cooled since 2023, so older data runs high.
- Who published it. Many "multiples by industry" articles come from brokers or advisors and do not name their sources. If a figure has no source and no date, do not use it.
Our advice: use a closed-deal source for your size range, note whether it is an average or a median, and treat it as the middle of a range rather than the answer.
A worked example: valuing a plumbing company
Here is how to use the table for an imaginary plumbing company. The company's figures are illustrative; the multiples are from the sources above.
| Step | Figure |
|---|---|
| Pre-tax net profit | $190,000 |
| Owner's salary and benefits | $135,000 |
| Interest and depreciation | $45,000 |
| Documented add-backs (personal vehicle, one-time legal fee) | $30,000 |
| SDE | $400,000 |
| Industry average multiple (BizBuySell, plumbing) | 2.61x |
| Starting estimate | $1,044,000 |
| Revenue check: $1.5M sales x 0.69x | $1,035,000 |
The two methods land close together, which is a good sign. Now adjust for the company itself.
If 40% of revenue comes from one general contractor and the owner still quotes every job, a buyer will price it below the average, perhaps nearer 2.2x ($880,000). If half the residential customers are on annual maintenance plans, a field manager runs the crews, and the books are monthly and reconciled, it can justify a multiple above the industry average.
At 3.2x the same $400,000 of SDE is worth $1,280,000. Same trucks, same revenue, a $400,000 difference.
That spread is the real lesson of the industry table. Your industry sets the range. How you run the company decides where in the range you land.
How to use an industry multiple in 5 steps
1. Calculate the right profit figure
Recast three years of profit into SDE (owner-operated) or adjusted EBITDA (manager in place). Use documented add-backs only.
2. Find your industry row and size band
Use the table above for Main Street businesses. If your EBITDA is above a few million dollars, use the private equity figures instead.
3. Build a range, not a point
Use the industry average as the middle. Set a low case about 0.5x below it and a high case about 0.5x above it.
4. Score your risk factors
Owner dependence, customer concentration, recurring revenue, growth trend, margin vs. peers and record quality each push you toward the low or high case.
5. Cross-check
Compare against the revenue multiple and the value of your assets. If the methods disagree badly, find out why before you rely on either. Our guide to how to value a small business walks through each method.
What moves your multiple within your industry
- Owner dependence. The single biggest discount on Main Street. See what to do when your business depends too much on you.
- Customer concentration. One customer above about 20% of revenue starts to worry buyers. See how customer concentration affects valuation.
- Recurring revenue. Service agreements, memberships and retainers are the most reliable way to move up the range. See how recurring revenue affects valuation.
- Size. BIZCOMPS data shows businesses above $700,000 in sales selling at 2.16x SDE versus 1.52x for those under $300,000.
- Clean financials. Monthly, reconciled books that match tax returns protect the add-backs that raise SDE.
- Growth and margins. Steady growth and better margins than peers signal a business that will keep earning after the sale.
For 37 specific moves, see how to increase the value of your business.
Common mistakes with industry multiples
- Applying an EBITDA multiple to SDE (this overstates value by a wide margin)
- Using public company multiples for a private business
- Using a multiple from a company ten times your size
- Trusting a figure with no source or date
- Assuming your business is average for your industry without checking your risk factors
- Valuing once and never checking again
Frequently asked questions
What is the average valuation multiple for a small business?
BizBuySell reported an average of 2.7x cash flow (SDE) and 0.7x revenue for businesses sold in Q2 2026. BIZCOMPS, which reports medians, showed 1.92x SDE for 2025. Most owner-operated businesses fall somewhere between 2x and 4x SDE.
Which industries have the highest valuation multiples?
Among small businesses in BizBuySell's five-year data, car washes (4.87x SDE), assisted living (4.30x), funeral homes (4.28x), rubber and plastic manufacturers (4.24x) and junk and salvage yards (4.11x) lead. They tend to combine hard assets, repeat customers and less reliance on the owner.
Is 3 times SDE a good multiple?
For most Main Street industries it is at or slightly above average. Whether it is good for your business depends on your industry row, your size and your risk factors such as owner dependence and customer concentration.
What EBITDA multiple do lower middle market companies sell for?
GF Data figures summarized by Mercer Capital show about 6.8x EBITDA for $10 million to $50 million deals and about 7.6x for $50 million to $250 million deals, with sector figures from 5.7x (technology) to 7.7x (healthcare services).
Why are public company multiples so much higher?
Public companies are larger, more diversified, have professional management and can be bought and sold instantly. Private small businesses carry more risk and are harder to sell, so buyers pay less per dollar of profit.
Do multiples include inventory and real estate?
It depends on the source. Many small business sales add inventory on top at cost and value real estate separately. Check what the database includes before you compare.
How often do industry multiples change?
They move with interest rates, lending conditions and buyer demand. BIZCOMPS data shows the median SDE multiple falling from 2.18x in 2023 to 1.92x in 2025. Recheck at least once a year.
See where your business sits in its range
An industry multiple tells you the range. It does not tell you where your company sits in it, or which changes would move it up. That is what we built Live Value for: see your company's valuation in minutes, the moves that raise it most, and track it as you grow.
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Sources
- BizBuySell, Industry Valuation Multiples (sales Q3 2021 to Q2 2026)
- BizBuySell Insight Report, Q2 2026
- BVR, Updated BIZCOMPS data show what's happening in the Main Street market (2026)
- Mercer Capital, Transactions Q3 2026 (citing GF Data)
- Aswath Damodaran, NYU Stern, EV/EBITDA by sector (US), January 2026
Multiples are averages or medians of past transactions and are not an appraisal of any business. For tax, legal or dispute purposes, use a credentialed appraiser.
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