2026 M&A Valuation Multiples by Industry
Lower-middle-market and small business valuation benchmarks. Evaluate EBITDA multiples, Seller’s Discretionary Earnings (SDE), and revenue multiples for mergers and acquisitions.
2026 EV/EBITDA comps by industry
Bars = median multiple; whiskers = published low–high range. Source: ExitVelocity lower middle-market benchmarks · Q3 2026.
2026 SDE multiple comps by industry
Bars = median multiple; whiskers = published low–high range. Source: ExitVelocity lower middle-market benchmarks · Q3 2026.
2026 Industry Multiples Benchmark Table
Data synthesized from lower middle market transactions between $500K and $25M enterprise value.
| Industry Sector | SDE Multiple (Range) | SDE Median | EBITDA (Range) | EBITDA Median | Revenue Multiple | Market Demand | Deep Dive |
|---|---|---|---|---|---|---|---|
| Technology & B2B SaaS Net Revenue Retention (>110%), gross margins >80%, low churn (<5%). | 3.0x – 4.5x | 3.8x | 5.5x – 8.5x | 6.8x | 2.5x – 4.5x | High Demand | Multiples |
| Home Services (HVAC, Plumbing, Electrical) Recurring maintenance contracts, technician retention, branded commercial fleet. | 2.8x – 4.2x | 3.4x | 4.5x – 6.5x | 5.2x | 1.0x – 1.8x | High Demand | Multiples |
| Healthcare & Medical Practices Private pay percentage, provider non-competes, modern facility leases. | 3.0x – 4.0x | 3.5x | 4.8x – 7.0x | 5.8x | 1.2x – 2.0x | Rising | Multiples |
| Manufacturing & Precision Machining Proprietary IP/tooling, customer concentration <15%, modern CNC machinery. | 2.5x – 3.8x | 3.0x | 4.0x – 6.0x | 4.8x | 0.8x – 1.4x | Stable | Multiples |
| Professional & B2B Services Multi-year retainer contracts, transferable management, strong EBITDA margin (>25%). | 2.5x – 3.5x | 3.0x | 4.2x – 6.0x | 4.9x | 1.0x – 1.6x | Stable | Multiples |
| Transportation & Logistics Dedicated route contracts, fleet age under 4 years, safety score ratings. | 2.4x – 3.6x | 2.9x | 3.8x – 5.5x | 4.4x | 0.7x – 1.2x | Stable | Multiples |
| Commercial Construction & Specialty Trades Contract backlog size, bonding capacity, licensed master tradespeople on payroll. | 2.2x – 3.4x | 2.8x | 3.5x – 5.0x | 4.1x | 0.6x – 1.0x | Stable | Multiples |
| Automotive Services & Repair Real estate ownership, bay count, fleet repair accounts, high car count. | 2.5x – 3.6x | 3.0x | 3.8x – 5.2x | 4.3x | 0.8x – 1.3x | Rising | Multiples |
| Food & Beverage / Hospitality Prime long-term lease terms, liquor license, turnkey management, strong margins. | 2.0x – 3.2x | 2.6x | 3.2x – 4.5x | 3.7x | 0.5x – 0.9x | Stable | Multiples |
| Retail & Multi-Unit Stores Omnichannel e-commerce presence, exclusive product rights, inventory turns. | 2.0x – 3.0x | 2.5x | 3.0x – 4.5x | 3.5x | 0.4x – 0.8x | Stable | Multiples |
What Drives Multiples in 2026?
In 2026, private equity sponsors, strategic acquirers, and SBA search fund buyers have become more disciplined with capital costs. Multiples are bifurcated: high-quality businesses with durable recurring revenue and clean books trade at premium valuations, while owner-dependent companies face steep valuation discounts.
- • High contracted recurring revenue or subscription agreements
- • Customer concentration: No single client accounts for >10% of revenue
- • Capable management team in place without daily owner dependency
- • Documented standard operating procedures (SOPs) and low key-employee risk
- • 3+ years of clean tax returns matching internal bookkeeping
- • Heavy owner dependency (owner handles all sales or key client accounts)
- • Top 3 clients represent >35% of overall firm revenue
- • Inconsistent accounting, high volume of unverifiable cash add-backs
- • Deferred capital expenditures or aging vehicle/equipment fleets
- • Customer churn exceeding industry averages
Worked 2026 valuation examples (high-ROI sectors)
Citeable median math for tech, home services, healthcare, and manufacturing — earnings × industry multiple = implied enterprise value.
Example: B2B SaaS platform valuation
$700,000 EBITDA × 6.8x → ~$4,760,000 EV
Full exampleExample: Multi-trade HVAC / plumbing company
$850,000 EBITDA × 5.2x → ~$4,420,000 EV
Full exampleExample: Multi-provider outpatient clinic
$720,000 EBITDA × 5.8x → ~$4,176,000 EV
Full exampleExample: Precision CNC machine shop
$980,000 EBITDA × 4.8x → ~$4,704,000 EV
Full exampleSee all ten industry examples on each spoke, or read 2026 example business valuations.
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