Short answer: Most US small businesses sell for 2 to 6 times EBITDA or SDE, but licensed and recurring-revenue businesses reach 6 to 15 times. The multiple is set by recurring revenue, owner dependence, and whether a platform buyer wants you.
How business valuation multiples actually work
A valuation multiple is shorthand for risk. A buyer pays a multiple of your normalized earnings, and the size of that multiple is a bet on how reliably those earnings continue after you leave. Lower risk, higher multiple. That is why a licensed veterinary practice with sticky clients trades at three times what an equally profitable one-time-project business does.
The number that matters is normalized earnings times a defensible multiple. Normalizing means adding back owner-specific expenses and one-time costs to show the real cash a buyer inherits. Get the earnings basis wrong and the multiple is meaningless.
Valuation multiples by industry (2026)
| Industry | Typical revenue | Sale multiple |
|---|---|---|
| CPA Firm | $500K - $10M | 1.0x to 1.4x revenue (under $2M); 4-8x EBITDA (over $2M) |
| HVAC Company | $1M - $20M | 3-6x EBITDA standalone; 8-12x platform tuck-in |
| Plumbing Company | $1M - $20M | 3-6x EBITDA standalone; 7-10x platform |
| Electrical Contractor | $1M - $25M | 4-7x EBITDA |
| Welding Shop | $1M - $15M | 4-6x EBITDA; defense/aerospace contracts inflate |
| Laundromat | $200K - $1.5M per location | 2.5x to 4.5x SDE; real estate at 6-9 cap |
| Gas Station | $2M - $10M | Real estate cap rate 6-8 + 2-4x SDE operations |
| Storage Facility | $300K - $5M per facility | 6-9 cap rate on real-estate-attached; 10-15x EBITDA on operating |
| Car Wash | $500K - $5M per location | 5-9x EBITDA on membership models |
| Auto Repair Shop | $500K - $5M | 3-5x EBITDA; fleet contracts inflate |
| Pest Control Company | $500K - $5M | 6-10x EBITDA; recurring contracts highly valued |
| Landscaping Company | $500K - $10M | 3-5x EBITDA; commercial maintenance contracts higher |
| Tree Service Company | $500K - $5M | 3-5x SDE |
| Roofing Company | $1M - $20M | 3-5x EBITDA residential; 5-8x commercial |
| Septic Service | $500K - $3M | 3-5x SDE; recurring schedules increase value |
| Pool Service Company | $500K - $5M | 4-6x EBITDA |
| Funeral Home | $500K - $5M | 4-7x EBITDA; real estate often included |
| Veterinary Practice | $500K - $10M | 8-15x EBITDA on platform deals |
| Dental Practice | $500K - $5M | 6-10x EBITDA on platform deals |
| Independent Pharmacy | $2M - $15M | 3-6x EBITDA |
| Marketing Agency | $1M - $10M | 4-7x EBITDA on B2B retainer-heavy books |
| MSP / IT Services | $1M - $15M | 5-8x EBITDA; SOC 2 compliant MSPs higher |
| Commercial Cleaning Company | $1M - $10M | 3-5x EBITDA |
| Excavation Company | $1M - $15M | 3-5x EBITDA |
| Insurance Agency | $500K - $10M | 8-12x EBITDA on platform deals |
Ranges reflect standalone sales; platform and strategic tuck-in buyers pay above these for the right business.
What moves your multiple up or down
Five things decide where you land in the range: how much revenue is contracted and recurring, whether the business runs without you, the quality and cleanliness of your financials, the transferability of your license and customer relationships, and whether a strategic acquirer is actively rolling up your niche. WETYR works these levers before going to market so you sell at the top of your range, not the bottom.
Frequently asked questions
What multiple do small businesses sell for?
What is the difference between an EBITDA multiple and an SDE multiple?
Does recurring revenue increase my multiple?
Related WETYR resources
WETYR connects qualified principals under an advisory engagement. WETYR is not a registered broker-dealer or business broker.