Current EBITDA valuation multiples by industry for 2026 — manufacturing, SaaS, healthcare, home services, and 15+ more sectors with deal volume and buyer activity data.
EBITDA multiples are the primary language of lower middle market M&A. When a PE firm says they're paying "6x," they mean six times the business's adjusted EBITDA. When a seller says they want "8x," they're anchoring to a multiple they've heard in their industry. Understanding what multiples are actually being paid — by industry, by deal size, and by buyer type — is the foundation of any intelligent sale or acquisition strategy. This is the current data.
The multiples in this guide represent actual transaction ranges for lower middle market businesses (typically $1M-$50M in EBITDA) based on deal activity through 2025 and into 2026. They are not asking prices or theoretical valuations — they are what buyers are actually paying.
A few important caveats:
EBITDA Multiple Range: 8-20x
Revenue Multiple Range: 3-12x ARR
SaaS commands the highest multiples in the lower middle market because of the predictability and scalability of subscription revenue. The key metrics buyers focus on:
| ARR Growth Rate | Typical ARR Multiple | Typical EBITDA Multiple |
|---|---|---|
| 50%+ | 8-12x ARR | 15-20x EBITDA |
| 30-50% | 5-8x ARR | 12-18x EBITDA |
| 20-30% | 4-6x ARR | 10-15x EBITDA |
| 10-20% | 3-5x ARR | 8-12x EBITDA |
| <10% | 2-4x ARR | 6-10x EBITDA |
EBITDA Multiple Range: 5-12x
MSPs with high Monthly Recurring Revenue (MRR) percentages trade at the top of this range. The key differentiator is the percentage of revenue that is contracted and recurring vs. project-based.
EBITDA Multiple Range: 6-12x
Healthcare services businesses command premium multiples because of the recurring nature of patient relationships, the regulatory barriers to entry, and the essential nature of the services. Key factors:
EBITDA Multiple Range: 6-10x
Dental practices have been a PE favorite for the past decade. Multiples have compressed slightly from 2021-2022 peaks but remain strong. DSO (Dental Service Organization) platform deals trade at the top of the range.
EBITDA Multiple Range: 7-12x
Behavioral health — including substance abuse treatment, mental health, and autism therapy (ABA) — has been one of the most active healthcare M&A segments. ABA therapy businesses with strong payor contracts and clinical outcomes data trade at the top of this range.
EBITDA Multiple Range: 5-10x
Home health multiples are heavily influenced by payor mix and regulatory environment. Medicare-certified agencies with strong quality scores trade at the top of the range.
EBITDA Multiple Range: 5-12x
HVAC has been one of the most active home services M&A sectors. PE firms have been aggressively building platforms in this space. Key drivers:
EBITDA Multiple Range: 5-10x
Similar dynamics to HVAC. Recurring maintenance contracts and geographic density are the key premium drivers.
EBITDA Multiple Range: 4-9x
Electrical services multiples are slightly lower than HVAC/plumbing because of the higher project-based revenue mix. Businesses with significant recurring commercial maintenance contracts trade at the top of the range.
EBITDA Multiple Range: 4-8x
Landscaping businesses with high recurring contract revenue (commercial maintenance, HOA contracts) trade at 6-8x. Primarily residential, project-based businesses trade at 4-6x.
EBITDA Multiple Range: 6-12x
Pest control is one of the most attractive home services businesses from a buyer perspective because of the high recurring revenue percentage (most customers are on annual contracts) and the essential nature of the service.
EBITDA Multiple Range: 6-14x
RIA multiples are driven by AUM, client retention, fee structure, and advisor dependency. Businesses with:
The key risk factor is advisor dependency — if clients follow the advisor rather than the firm, the business has significant key-person risk.
EBITDA Multiple Range: 6-12x
P&C insurance agencies with high renewal rates and diversified carrier relationships trade at the top of this range. The recurring nature of insurance premiums creates predictable revenue that buyers value highly.
EBITDA Multiple Range: 4-8x
Accounting practices have seen increased PE interest in recent years. Practices with a high percentage of recurring tax and advisory clients trade at the top of the range. Audit-heavy practices trade lower due to regulatory complexity.
EBITDA Multiple Range: 4-8x
Manufacturing multiples vary significantly based on:
EBITDA Multiple Range: 5-10x
Specialty manufacturers with proprietary products, strong IP, and diversified customer bases trade at the top of this range. Niche manufacturers serving defense, aerospace, or medical device markets often command premium multiples.
EBITDA Multiple Range: 4-9x
Food manufacturing multiples depend heavily on brand strength, distribution relationships, and margin profile. Branded consumer food businesses trade higher than private label manufacturers.
EBITDA Multiple Range: 4-7x
Distribution businesses with exclusive supplier agreements, proprietary product lines, or significant value-add services (kitting, assembly, technical support) trade at the top of this range. Pure commodity distributors trade at the bottom.
EBITDA Multiple Range: 4-8x
3PL multiples are driven by contract quality, customer concentration, and asset-light model. Asset-light 3PLs with long-term customer contracts trade at 6-8x. Asset-heavy operations trade lower.
EBITDA Multiple Range: 3-7x
Transportation multiples have compressed from 2021-2022 peaks due to freight market normalization. Asset-light brokers and technology-enabled logistics companies trade at the top of the range.
EBITDA Multiple Range: 4-9x
Business services multiples vary widely based on:
EBITDA Multiple Range: 4-8x
Agency multiples have been compressed by client concentration risk and key-person dependency. Agencies with retainer-based revenue and diversified client bases trade at the top of the range. Project-based agencies trade lower.
EBITDA Multiple Range: 4-7x
IT staffing businesses trade on gross margin rather than revenue. Businesses with 25%+ gross margins and diversified client bases trade at 5-7x EBITDA. Lower-margin staffing businesses trade at 4-5x.
EBITDA Multiple Range: 4-8x
Engineering services businesses with government contracts and strong backlog trade at the top of this range. The quality and length of the backlog is the primary valuation driver.
EBITDA Multiple Range: 3-8x
E-commerce multiples have normalized significantly from 2020-2021 peaks. Key drivers:
EBITDA Multiple Range: 4-10x
Consumer products companies with strong brand recognition, retail distribution, and high gross margins trade at the top of this range. Commodity consumer products trade lower.
EBITDA Multiple Range: 3-6x
General contracting businesses trade at lower multiples due to the project-based nature of revenue and the difficulty of predicting future backlog. Businesses with long-term commercial relationships and strong backlog trade at the top of the range.
EBITDA Multiple Range: 4-8x
Specialty contractors with recurring commercial maintenance contracts and strong brand recognition in their markets trade at the top of this range. Primarily residential, project-based contractors trade lower.
Regardless of industry, the following factors consistently drive multiple premium:
| Factor | Impact on Multiple |
|---|---|
| Recurring revenue > 60% | +1-3x |
| EBITDA growth > 20% annually | +1-2x |
| No customer > 10% of revenue | +0.5-1x |
| Strong management team (owner not critical) | +0.5-1.5x |
| EBITDA > $5M | +1-2x (size premium) |
| Proprietary product or IP | +0.5-1.5x |
| Defensible competitive moat | +0.5-1x |
And the following factors consistently drive multiple discount:
| Factor | Impact on Multiple |
|---|---|
| Top customer > 30% of revenue | -1-2x |
| Owner-dependent (key-person risk) | -0.5-1.5x |
| Declining revenue or EBITDA | -1-3x |
| EBITDA < $1M | -1-2x (size discount) |
| Pending litigation or regulatory issues | -0.5-2x |
| Significant near-term capex required | -0.5-1x |
For a confidential assessment of where your business falls within its industry multiple range, Deal Flow's team can provide a no-obligation valuation perspective based on current transaction data. Start the conversation here.