EBITDA Multiples for Small Business Valuation 2026
, by Tyler Nix, Gungnir Group
What multiples are buyers paying for small businesses in 2026? A practical guide to EBITDA multiples by sector, size, and business quality for owners considering a sale.
Frequently Asked Questions
- What is a good EBITDA multiple for a small business?
- For most small businesses ($700K-$5M EBITDA), a 3x-5x multiple is typical in 2026. The specific multiple depends on revenue quality, management depth, customer diversification, and sector. Businesses with recurring revenue and no customer concentration typically land at the higher end.
- Do buyers pay different multiples for different industries?
- Yes. Software-enabled businesses with recurring revenue can command 5x-7x or more. Traditional service businesses typically trade at 3x-4.5x. The sector matters, but so does the specific business quality within the sector.
- How does customer concentration affect my valuation?
- If your top customer represents 30% of revenue and they leave post-acquisition, the buyer just lost 30% of what they paid for. Buyers account for this risk by reducing the multiple or requiring earnout provisions tied to customer retention.