Q2 2026 Multiples by Niche. Lower-middle-market transaction multiples observed and verified through WETYR's own pipeline, comparable transaction databases (GF Data, PitchBook), and public broker disclosures. Updated quarterly. Multiples reflect cash-equivalent value at close, not gross stated consideration.
Multiple Ranges by Niche & Tier
| Niche | Sub-$2M EBITDA | $2M-$10M EBITDA (Mid) | $10M+ EBITDA (Platform) | Q2 2026 Trend |
|---|---|---|---|---|
| HVAC | 2.5-4.5x SDE | 4-7x EBITDA | 8-12x EBITDA | Stable, platform deals competitive |
| Plumbing | 2.5-4x SDE | 3-6x EBITDA | 7-11x EBITDA | Multi-trade rollups paying premiums |
| Electrical | 3-5x SDE | 4-7x EBITDA | 8-12x EBITDA | EV/data center demand bid up |
| Pest Control | 3-5x SDE | 5-8x EBITDA | 8-12x EBITDA | Subscription premium widening |
| Accounting Firms | 1.0-1.2x revenue | 1.0-1.4x revenue or 4-8x EBITDA | 1.4-1.6x revenue | Boomer exit wave, supply heavy |
| Dental Practices | 4-6x SDE | 5-8x EBITDA | 8-10x EBITDA | DSO consolidation aggressive |
| Veterinary | 5-8x SDE | 8-12x EBITDA | 12-15x+ EBITDA | Strongest premium in lower-mid |
| Insurance Agencies | 2.0-2.5x revenue | 2.5-3.5x revenue | 3.5x+ revenue / 10-12x EBITDA | Aggregator wave compressing supply |
| Self-Storage | 5.5-6.5% cap | 5-6% cap | 4.5-5.5% cap | Rate-driven softening late 2025 |
| Laundromats | 3-5x SDE | 4-6x SDE | - | Cash-flow buyers active |
| SaaS | 2-4x ARR | 4-8x ARR | 8-15x+ ARR | Rule of 40 separating winners |
| Amazon FBA | 2-3x SDE | 2.5-4x SDE | - | Aggregator pullback continues |
| Marketing Agencies | 2-3x SDE | 4-7x EBITDA | 6-9x EBITDA | Retainer-heavy commands premium |
| Pool Service | 2.5-4x SDE | 4-6x EBITDA | 7-10x EBITDA | Recurring contracts driving rollups |
| Landscaping | 2-3.5x SDE | 3-5x EBITDA | 6-8x EBITDA | Commercial > residential premium |
| Auto Repair | 2-3x SDE | 3-5x EBITDA | 5-7x EBITDA | Multi-location platforms forming |
| Roofing | 2.5-4x SDE | 3-5x EBITDA | 5-8x EBITDA | Storm-cycle dependent |
| IT Services / MSP | 3-5x SDE | 5-8x EBITDA | 8-12x EBITDA | Recurring MRR premium widening |
| Commercial Cleaning | 2-3x SDE | 3-5x EBITDA | 5-7x EBITDA | Contract-density driven |
| Septic / Drainage | 2.5-4x SDE | 3.5-5.5x EBITDA | 6-8x EBITDA | Underserved roll-up category |
How To Read These Ranges
Multiples shown are bands, not point estimates. Within each band, individual transactions land based on the eight value drivers measured by the WETYR Exit Score. A business in the top-quartile of value-driver scores typically transacts at the top of the published band; a bottom-quartile business at the bottom or below. The same business with the same EBITDA can sell anywhere across the band — preparation is what determines where.
Tier Definitions
Sub-$2M EBITDA: Owner-operator businesses, typically quoted on Seller's Discretionary Earnings (SDE) basis, transacted through brokers or operator-buyers. $2M-$10M Mid-Market: Typically EBITDA-multiple driven, professionally managed, sold through M&A advisors. $10M+ Platform: PE-grade, audited financials, sold through investment banks or competitive M&A processes to strategic and financial buyers.
Q2 2026 Macro Themes
Three themes shape current pricing across niches: (1) the boomer-owner exit wave continues to add supply across professional services and trades, modestly compressing sub-$5M EBITDA multiples; (2) PE roll-up activity remains elevated in HVAC, electrical, vet, dental, insurance, and pest control, supporting platform multiples at the top end; (3) interest rates plateaued through Q1 2026 are stabilizing capital structures and bringing leveraged buyers back to the table after the 2023-2024 retreat. The platform-vs-bolt-on multiple gap is the largest it has been in five years.
Methodology
Data sourced from: WETYR's own active pipeline (sell-side mandates, buy-side underwrites, direct operator-buyer transactions), GF Data quarterly reports, PitchBook private-company transaction database, IBBA Market Pulse, BVR DealStats, and public 10-K filings of major aggregators in each niche. Multiples are reported as cash-equivalent at close: gross consideration adjusted for earnouts (probability-weighted), rollover equity (haircut for liquidity), and seller notes (NPV at market rate). This methodology produces lower headline numbers than gross stated consideration but more accurately reflects what owners actually realize.
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Authoritative Sources & Further Reading
WETYR works alongside primary sources, regulators, and industry data providers when advising owners and operators. The references below are the same sources our advisory team uses when modeling deals, benchmarking multiples, and stress-testing assumptions. We encourage every owner, buyer, and operator to verify any data point that materially affects their decision against the underlying primary source.
Primary Federal Sources
- U.S. SBA — 7(a) Loan Program for acquisition financing eligibility, terms, and lender list.
- SEC EDGAR for public-company comparables, 10-K disclosures, and recent strategic acquirer filings.
- IRS — Sale of a Business on Section 1060 asset-allocation reporting and tax treatment of asset vs stock sales.
- U.S. Bureau of Labor Statistics — Industries at a Glance for wage, employment, and growth data by NAICS code.
- U.S. Census Economic Census for industry size, firm counts, and revenue distributions.
- Federal Reserve Economic Data for prevailing rate environment underwriting.
Standards & Reference Bodies
- AICPA for Quality of Earnings methodology and CPA standards governing transaction-related financial work.
- FINRA Rules and Guidance for understanding when a transaction crosses into broker-dealer territory.
- NACVA business valuation credentialing body and standards (CVA designation).
- USPAP — Uniform Standards of Professional Appraisal Practice for valuation engagement standards.
- Investopedia — EBITDA reference page for definitional alignment with our glossary.
- Harvard Business Review — Mergers and Acquisitions archive on integration and post-close value creation.
For deeper transaction-specific data, the GF Data and PitchBook private-company transaction databases publish quarterly multiple ranges by industry size band that we cross-reference against our own pipeline benchmarks. Owners considering a sale should also review the Pepperdine Private Capital Markets Report (free, annual) for current cost-of-capital and lender appetite data across the lower middle market. Buyers underwriting search-fund or holdco theses commonly pair Stanford GSB's Search Fund Study with the IBBA Market Pulse report, which tracks multiples for sub-$50M transactions quarterly. None of these sources replace deal-specific advisory, but they give owners and operators the same reference points professional acquirers are using on the other side of the table.
Related WETYR Resources
Every WETYR resource ladders into a structured engagement framework. Whether you are diagnosing readiness, modeling a number, or preparing for a specific transaction phase, the resources below cover the most common owner and operator workflows. All tools are free; all guides are operator-written; all engagements start with a confidential conversation.
Engagement Pillars
Decision Tools
Operator-Written
Glossary & FAQ
Checklists & Templates
Niche Coverage
If you are not sure where to start, the Exit Readiness Score takes about four minutes and produces a one-page diagnostic on the value drivers most likely to compress your multiple. From there the natural next step is either a long-form guide covering your specific situation, a focused glossary term lookup, or a confidential introductory call with our team to discuss whether WETYR's advisory or operator-buyer engagement is a fit. Our team responds to every inbound inquiry within one business day.