Typical selling multiples by industry

Every range on this page is a multiple of adjusted earnings — what the business actually earns for its owner once one-time costs, owner compensation and discretionary spending are added back. Multiply the middle of a range by your own adjusted earnings and you have a rough idea of what the market pays for a business like yours.

These are directional figures drawn from what buyers pay in each sector. They are not an appraisal, and no range substitutes for a valuation of your particular business.

What moves the number within a range

Two businesses in the same industry rarely sell for the same multiple. What separates the top of a range from the bottom is usually a short list: whether the business runs without the owner in it, how concentrated the customer base is, whether earnings recur or have to be won again every month, the condition of the equipment and the lease, and how clean the books are.

Which of those carries the most weight changes by sector — customer concentration decides a manufacturing deal, recurring service contracts decide an HVAC one. The page for each industry above sets out the drivers that matter there and who the likely buyers are.

Find out where your business falls

The first step costs nothing. Tell us about your business and we will send a market intelligence brief specific to your industry and geography in 24–48 hours.