Business Valuation Multiples by Industry (2025)

What multiple will your business command? It depends heavily on your industry. Here's a realistic look at what buyers are paying in different sectors.

How to Read These Numbers

These are SDE multiples — the number multiplied by your Seller's Discretionary Earnings to estimate value. A business with $200K SDE in an industry that trades at 2.5x would be worth roughly $500K.

Ranges exist because every business is different. A well-run company with growth and recurring revenue will be at the high end. A struggling or risky business will be at the low end.

Service Businesses

• HVAC & Plumbing: 2.0 – 3.5x
• Landscaping & Lawn Care: 1.5 – 2.5x
• Cleaning Services: 1.5 – 2.5x
• Auto Repair: 1.5 – 2.5x
• Accounting & Bookkeeping: 1.0 – 1.5x revenue (different formula)

Food & Hospitality

• Restaurants (Independent): 1.5 – 2.5x
• Fast Casual / QSR: 2.0 – 3.0x
• Bars & Nightclubs: 1.5 – 2.5x
• Catering: 2.0 – 3.0x

Healthcare

• Dental Practices: 60 – 85% of revenue (different formula)
• Medical Practices: 50 – 100% of revenue
• Veterinary: 2.5 – 4.0x
• Physical Therapy: 2.5 – 3.5x

Professional Services

• Marketing & Advertising Agencies: 2.5 – 4.0x
• IT Services / MSPs: 2.5 – 4.0x
• Consulting: 2.0 – 3.5x
• Staffing & Recruiting: 2.0 – 3.5x

E-commerce & Retail

• E-commerce (Branded): 3.0 – 4.5x
• E-commerce (Reseller/Dropship): 2.0 – 3.0x
• Amazon FBA: 2.5 – 4.0x
• Brick & Mortar Retail: 1.5 – 2.5x

What Pushes You Higher

• Recurring revenue (subscriptions, contracts)
• Consistent growth (3+ years)
• Diversified customer base
• Systems and processes documented
• Business can run without owner

What Drags You Lower

• Declining revenue
• Customer concentration
• Owner dependency
• Short lease term
• Poor financial records