EBITDA Multiples by Industry & Business Size: 2026

I use 4.0×–7.0× EBITDA as a broad screening range - not a price rule - for U.S. businesses earning roughly $1 million–$25 million in EBITDA. Your starting point should be the industry, business size, and earnings that will remain after the owner leaves.

As of October 7, 2026, full-year results are not available. I compare partial 2026 deal reports, older transaction samples, and advisor estimates, keeping closed-sale multiples separate from asking prices.

Quick Comparison

These ranges offer a first check, not matching deal samples or verified 2026 averages.

Industry	Initial screening reference	What I check first
B2B services and consulting	4.0×–8.0× EBITDA	Client retention and founder dependence
Software and SaaS	3.0×–13.0× across cited size bands	Recurring revenue, churn, and profit
IT services	4.5×–9.5× across cited size bands	Managed contracts versus project work
Healthcare services	5.0×–8.0× EBITDA	Clinician pay and transferable earnings
Manufacturing	5.0×–7.0× for general industrial businesses	Equipment, backlog, and customer mix
Construction and trades	3.0×–5.0× EBITDA	Backlog margins and bonding capacity
Logistics and transportation	3.0×–9.0× by business model	Fleet costs and contract quality
Distribution and wholesale	Roughly 4.5×–8.0× EBITDA	Inventory, supplier rights, and working capital
Retail and e-commerce	2.0×–7.0× by business model; some exceed this	Channel risk and margins after advertising
Restaurants and food businesses	3.0×–7.0× for managed restaurant operators	Owner replacement, leases, and unit costs
Marketing agencies	2.0×–9.0× by revenue mix; specialists may exceed this	Retainers, retention, and owner dependence
Real-estate operations	6.0×–9.0× for property management	Contract transfer and separately owned property

Before applying any range, I check three things:

• Earnings: Is the figure EBITDA or seller’s discretionary earnings (SDE)? They are not interchangeable.
• Source: Does the benchmark disclose deal dates, sample size, and comparable business sizes?
• Price: Does it include debt, cash, inventory, real estate, or contingent payments?

<u>An asking price is not a completed-sale valuation.</u> I use listings to narrow the search, then verify earnings and deal terms before deciding whether the price fits.

1. B2B Services and Consulting

Industry Multiples

Consulting firms tend to sit at the higher end of service-business valuations when revenue is recurring and can transfer to a new owner.

Use 4.0x–8.0x normalized EBITDA as a working range - not a verified 2026 average. A 2026 consulting guide puts consulting firms at 4.0x–7.0x EBITDA, while broader B2B services fall within 5.0x–8.0x.

EBITDA Size Bands

These 2026 advisor ranges are directional, not transaction quartiles. Larger firms usually earn higher multiples because they rely less on the owner.

Annual normalized EBITDA	Indicative EBITDA multiple
Under $1 million	Usually priced on SDE, not EBITDA.
$1 million–$3 million	4.5x–6.5x
$3 million–$10 million	5.5x–8.0x
Above $10 million	6.5x–10.0x

Source Reliability

Treat these benchmarks as context, not a replacement for deal-level diligence.

The IBBA/M&A Source Q1 2026 summary reports a 4.0x median EBITDA multiple for $2 million–$5 million transactions. The broader survey covered 203 closed transactions from approximately 300 advisors. Its size bands reflect enterprise value or transaction size, not necessarily company EBITDA.

The supplied material doesn't disclose the consulting subgroup’s sample size or directly compare recurring services with project consulting. Use these directional results to sanity-check a listing, not to set its price.

Listing Applicability

For a listing, focus on whether the business can keep its earnings after the founder steps back.

Check client retention, customer concentration, and founder dependence before choosing a multiple. Normalize nonrecurring items and owner compensation. Then test whether EBITDA holds up after removing the founder’s billable work, sales duties, and delivery roles.

Recurring revenue, a spread of customers, documented processes, and a capable team support the top of the range. Project work, customer concentration, reliance on subcontractors, and dependence on the founder push the multiple lower.

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2. Software and SaaS

Industry Multiples

Software and SaaS multiples depend on profitability, buyer mix, and company size. One H1 2026 private-equity dataset reported a median EV/EBITDA of 11.7×, down from 20.4×. Keep revenue multiples separate: the 4.5× median revenue multiple is not an EBITDA multiple. Use EBITDA for mature, profitable software companies. Use revenue or ARR when profits are thin or negative.

For SMB listings, use the ranges below to screen deals by size.

EBITDA Size Bands

These ranges apply to profitable software companies. They are screening bands, not direct transaction quartiles. For SMB screening, company size matters more than the headline median.

Annual normalized EBITDA	Lower-middle-market SaaS range	B2B SaaS range
$500,000–$1 million	3.0×–4.5×	-
$1 million–$3 million	4.0×–6.0×	5.5×–8.0×
$3 million–$10 million	5.5×–8.0×	7.0×–10.0×
$10 million–$25 million	7.0×–10.5×	9.0×–13.0× for $10 million+

Source Reliability

Treat headline medians as screening references, not listing benchmarks. They reflect larger deals, not typical SMB transactions.

Aventis summaries report 503 to 543 private SaaS transactions, but only 206 to 232 disclosed EV/EBITDA observations. Their 22.4× to 23.0× medians come from larger-deal samples. One reports a median deal size near $181 million, which makes these figures a poor proxy for an SMB listing. The datasets are not U.S.-only, and they provide neither an exact October 7, 2026 cutoff nor closed-deal counts by size band.

Listing Applicability

Within each EBITDA band, revenue quality drives the valuation spread. Check recurring revenue, gross margin, churn, concentration, renewal history, and founder dependence. Normalize EBITDA for owner compensation, personal expenses, legal fees, and one-time development or migration costs. Net revenue retention above 120% and a Rule of 40 above 50 can justify a higher multiple, even when EBITDA is similar.

For SaaS listings on Kumo, record asking price, stated EBITDA, recurring revenue, listing date, and financial-verification status separately. An asking-price-to-EBITDA ratio is not a closed-deal EV/EBITDA multiple. Use listings to screen and compare, then confirm debt, cash, deferred revenue, and any contingent payments before benchmarking against transaction data.

3. IT Services

Industry Multiples

Contract mix drives IT services multiples. Firms may rely on recurring managed contracts, project work, or both. Published 2026 estimates put MSPs at 6.0×–12.0× EBITDA, cybersecurity services at 8.0×–15.0×, cloud and DevOps services at 8.0×–14.0×, and staff augmentation at 3.0×–5.0×. Recurring contracts support higher multiples. Project-heavy firms depend more on project flow, billable utilization, and client-specific work.

EBITDA Size Bands

For SMB screening, use these 2026 analyst size bands rather than headline medians.

Annual normalized EBITDA	Indicative EV/EBITDA
$1 million–$3 million	4.5×–6.0×
$3 million–$10 million	5.5×–7.5×
Above $10 million	7.0×–9.5×

Source Reliability

These medians serve as upper-market references, not direct SMB benchmarks. A dataset covering 2015–2026 reports a 10.4× median EV/EBITDA and a 6.9×–15.9× interquartile range. It does not cover 2026 alone. A separate MSP sample reports 8.9× across 120 transactions, with a median deal size near $38.5 million. M&A Signal tracks 63 named MSP transactions completed from January 2022 through March 2026 and reports 9.0× normalized EBITDA.

Listing Applicability

For IT-services listings on Kumo, separate managed services, project work, and hardware or software resale before choosing a benchmark. Check managed-contract share, customer retention, service gross margin, technician turnover, and contract transferability.

Include the cost of replacing an owner who handles sales or delivery. Those duties don't disappear after closing. Transferable contracts and limited owner dependence support the upper end of the size band. Weak transferability and heavy owner dependence push the multiple lower. Cybersecurity or cloud/DevOps expertise warrants a premium only when it supports durable earnings - not just because it appears in the listing description.

4. Healthcare Services

Industry Multiples

5.0×–8.0× EBITDA is a broad screening benchmark for established U.S. lower-middle-market healthcare services businesses - not a sector average. Multiples vary sharply by subsector and how much the business depends on its owner.

Indicative 2026 ranges for primary care, dental, surgery centers, behavioral health, and home health span 3×–12×, depending on size and transferability. These ranges draw on adviser estimates, transaction references, and commentary, rather than a standardized sample. Within each subsector, larger businesses tend to command higher valuations.

EBITDA Size Bands

Multi-office dental groups illustrate scale effects: indicative 2026 ranges are 5.5×–8.5× for $1 million–$3 million EBITDA and 7.5×–12.0× for $3 million–$10 million EBITDA - a size effect, not a different industry benchmark.

Small practices with less than $1 million in SDE are often valued using SDE, not EBITDA. A 2026 guide cites approximately 1.9×–3.6× SDE.

Source Reliability

Transaction averages help check these ranges, but they don't replace size-band analysis. Mercer Capital reported 7.7× average healthcare-services EBITDA in Q2 2026, down from 8.5× in 2025.

MNP’s 2026 update covers 2025 transactions, citing 8.5× EV/EBITDA overall and 6.5× for transaction values of $10 million–$25 million. Neither supplied summary includes full sample details, exact publication dates, or separate benchmarks for platforms and add-ons.

Listing Applicability

For SMB listings, focus on whether earnings can transfer to a buyer after closing. For healthcare listings on Kumo, verify market-rate clinician compensation, related-party rent, staffing costs, and seller add-backs. Compare owner-operated practices separately from managed platforms.

A high-demand specialty doesn't automatically earn a platform multiple. Check payer and referral concentration, clinician retention, reimbursement exposure, licensure, provider ownership rules, change-of-control provisions, commercial-payer contracts, billing integrity, and HIPAA compliance. Transferable earnings, not specialty alone, drive the multiple.

5. Manufacturing

Industry Multiples

Manufacturing valuations depend on backlog, certifications, equipment quality, and customer concentration. There’s no single reliable industry multiple. Compared with service businesses, manufacturers’ multiples rely more heavily on physical assets and backlog.

A 2026 benchmark summary puts general industrial businesses at 5.0×–7.0× EBITDA, precision CNC shops at 6.0×–8.0×, and aerospace-and-defense shops with AS9100, ITAR, or NADCAP credentials at 7.0×–11.0×. Larger size, customer relationships that transfer to a buyer, and less reliance on the owner support higher multiples. Credentials warrant a premium only when they protect customer relationships, backlog, or access to contracts.

EBITDA Size Bands

Screening ranges put manufacturers with under $2 million in EBITDA at 4.0×–6.0×, those with $10 million–$50 million at 6.0×–9.0×, and those with above $50 million at 8.0×–12.0×. These are EV/EBITDA ranges.

Source Reliability

Mercer Capital reported a manufacturing multiple of 7.1× in H1 2026, up from 6.7× in 2025. A private-equity-backed sample spanning Q1 2025 through Q1 2026 covered 93 transactions, with averages ranging from 6.4×–7.8× across size brackets.

These samples cover different periods and groups of businesses, so use them as guideposts - not direct comparisons. Published summaries don’t provide enough deal-level detail to compare them directly with small, owner-operated listings.

Listing Applicability

For SMB listings, the headline multiple is just the starting point. Convert SDE to normalized EBITDA using a realistic replacement-manager cost before comparing listings. Owner-operated manufacturers with under $1 million in earnings are often valued on SDE rather than EBITDA. Review maintenance capital expenditures, inventory requirements, equipment financing, and customer concentration.

If the sale includes real estate, separate its value from the operating business and adjust rent to market rates. Check equipment condition, backlog quality, and current credentials before accepting a premium. Reconcile enterprise value with debt, excess cash, and the agreed working-capital requirement to assess total funding needs.

EBITDA Multiples and Valuation Ranges: How Companies are Valued

6. Construction and Trades

Construction depends more on individual projects than manufacturing does. That makes backlog quality and bonding capacity just as important as EBITDA.

Industry Multiples

Reported 2026 guides put broad construction and trades at 3.0×–5.0× EBITDA, managed specialty contractors at 3.5×–5.5× EBITDA, and mechanical or HVAC firms with recurring service revenue at 4.0×–6.0× EBITDA.

Recurring revenue, a management team that can stay after a sale, and bonding capacity support higher multiples. Project-only revenue and dependence on the owner hold them back. Small general contractors are often quoted at 2.5×–4.0× SDE.

EBITDA Size Bands

Use these adjusted-EBITDA ranges as a screening guide, not a fixed pricing rule. Backlog margin, transferable management, and customer mix still drive the multiple.

Below $1 million in EBITDA, owner-operated businesses are usually screened on SDE rather than EBITDA.

Adjusted EBITDA	Indicative multiple	Typical business profile
Under $1 million	2.5×–4.0×	Owner-dependent project contractor
$1 million–$5 million	4.0×–6.5×	Established specialty contractor
$5 million–$15 million	5.5×–9.0×	Regional platform
$15 million and above	8.0×–12.0×+	Scaled platform

Source Reliability

The size-band source covers 562 U.S. construction M&A transactions from 2025 - not 2026. Separate 2025 small-business sale data report these average cash-flow multiples:

Trade	Average cash-flow (SDE) multiple	Number of sales
HVAC	2.80×	123
Electrical and mechanical contracting	2.94×	57
Plumbing	2.62×	61
Heavy construction	2.98×	65

These are SDE benchmarks, not EBITDA multiples. As of October 7, 2026, the supplied summaries do not establish a standardized sample of closed 2026 deals by trade and EBITDA band.

Listing Applicability

For construction listings, test backlog margins, not just backlog dollars. Review job-cost reports, unresolved change orders, unbilled receivables, and warranty claims to assess EBITDA quality. Confirm whether bonding capacity will remain after the owner leaves.

Separate recurring maintenance revenue from installation projects. Before applying a multiple range, check the listing date and whether earnings are stated as SDE or EBITDA. Use asking prices only for screening.

7. Logistics and Transportation

Industry Multiples

In transportation, valuation depends on earnings that can transfer to a buyer. Asset intensity and contract quality matter more than the business label.

Asset-heavy dry-van and truckload carriers typically trade at 3.0×–5.0× adjusted EBITDA, while dedicated fleets and final-mile operators fall at 4.0×–6.0×. Specialized carriers - including refrigerated, tanker, flatbed, hazmat, and heavy-haul businesses - range from 4.0×–7.0×. Asset-light brokerages, 3PLs, and managed transportation businesses can reach 5.0×–9.0× when contracts, customer mix, and technology support the price.

EBITDA Size Bands

The ranges below use adjusted LTM EBITDA and serve as screening guides, not fixed pricing rules. Older equipment or a brokerage that depends on its owner can put a business below these ranges.

Adjusted LTM EBITDA	Indicative multiple
Under $1 million	2.0×–4.0×
$1 million–$3 million	4.0×–6.0×
$3 million–$10 million	5.0×–8.0×
$10 million and above	7.0×–12.0×+

Source Reliability

Sector updates report 101 closed transactions in the LTM period ending Q2 2026, down from 113 a year earlier. Separately, first-half 2026 median EV/EBITDA was 7.4× for strategic deals and 6.6× for private-equity deals.

Treat these medians as screening references, not SMB pricing benchmarks. The supplied summaries don't include sample counts for the medians or transaction counts behind the indicative ranges.

Listing Applicability

For SMB listings, start with one question: Will contracted revenue stay with the business after the owner leaves?

• Verify earnings. Use Kumo to narrow listings by business model, then check earnings against financial statements and tax returns. For carriers, review equipment age, maintenance, insurance claims, driver turnover, FMCSA violations, and contracted versus spot-market freight. For brokerages and 3PLs, check gross-profit retention, customer concentration, and reliance on individual agents.
• Check what's included in the price. Confirm whether equipment, real estate, and working capital are included.
• Reconcile value and funding needs. Convert enterprise value to equity value by subtracting debt and debt-like obligations and adding excess cash. Account for any working-capital adjustment separately.

8. Distribution and Wholesale

Distribution sits between manufacturing and logistics. Inventory, supplier access, and cash conversion drive valuation more than volume alone.

Industry Multiples

Distribution multiples depend on product mix, supplier access, margins, and working-capital efficiency. 2026 guides put broad distribution at roughly 4.5×–8.0× EBITDA, with lower ranges for commodity-heavy businesses and higher ranges for specialty or platform-quality firms.

Business type	Indicative EBITDA multiple
Commodity or low-margin distributor	2.5×–4.0×
General-line distributor without exclusive supplier rights	3.0×–4.5×
Specialty distributor	4.0×–6.0×
Scaled regional or platform-quality distributor	6.5×–9.5×

Size matters most when it brings steadier margins, more leverage with suppliers, and better inventory turns.

EBITDA Size Bands

Below $500,000 in EBITDA, many owner-operated wholesalers are priced on SDE rather than EBITDA. A 2026 guide reports 5.0×–9.0× EBITDA for distributors earning $500,000–$7 million. A separate industrial distribution sample reports 6.5×–9.5× adjusted EBITDA for businesses earning $1.5 million–$4 million, with $10 million–$25 million in revenue.

Higher EBITDA supports a premium only if supplier access, rebates, and inventory conversion hold up after an ownership change.

Source Reliability

A July 2026 disclosed-deal dataset reports a 6.8× median EV/EBITDA, with the middle 50% at 4.8×–8.7×. It covers 17 transactions from 2018–2026 involving businesses with $25 million–$100 million in enterprise value - not EBITDA. This is not a 2026-only sample, and the advisor guides do not disclose sample counts.

For smaller wholesalers, a 2021–2025 sold-business benchmark reports 2.0×–3.4× SDE, with a 2.68× median. Account for owner compensation and replacement management costs before comparing SDE with EBITDA. These figures provide screening context, not pricing anchors for SMB listings.

Listing Applicability

Review 24–36 months of monthly statements, along with inventory aging, inventory turns, and receivables aging. Check whether supplier exclusivity, territory rights, rebates, and pricing survive a change of control.

Set a seasonal working-capital target, and clarify whether the asking price includes inventory. Use Kumo to sort listings by earnings and asking price, but treat those figures as asking-price data, not closed-deal multiples.

9. Retail and E-Commerce

Retail valuations depend on margin quality, inventory, and channel risk. Online sales also bring exposure to sales platforms and advertising costs.

Industry Multiples

Online sales do not automatically earn a higher multiple. A 2026 transaction compilation reports median EV/EBITDA of 2.05× for general retail and 3.00× for online retail. Retail EBITDA quality depends heavily on channel mix, fulfillment costs, and inventory turns.

Business model	Indicative EBITDA multiple
Marketplace-dependent business	2.0×–3.5×
Standard DTC or branded online business	3.0×–5.5×
Subscription-led business	4.0×–6.0×
Diversified omnichannel brand	5.0×–7.0× or higher

Ad Astra’s hybrid-brand range generally applies to businesses with roughly $15 million or more in revenue, not small online stores. Size matters most when a business also has repeat demand, owns its customer data, and controls its sales channels.

EBITDA Size Bands

Private-market benchmarks suggest these ranges for normalized EBITDA:

Normalized EBITDA	Indicative EBITDA multiple
Below $1 million	2.0×–4.0×
$1 million–$3 million	4.0×–6.0×
$3 million–$5 million	5.0×–8.0×
$5 million–$10 million	6.0×–10.0×

These 2025–2026 benchmarks are size guides, not retail-specific medians. Smaller owner-operated e-commerce stores often use 2.0×–4.0× SDE instead.

Source Reliability

The available sources do not establish reliable U.S. closed-deal medians for every retail EBITDA band. Neither the cited 2026 compilation nor the advisory ranges disclose sample counts in the supplied material.

A separate iValuate review covers 147 consumer and retail transactions from January 2024 through March 2026. It spans multiple segments and years, but does not provide subgroup counts. As of October 7, 2026, it is not a complete 2026-only sample.

Listing Applicability

Reconcile sales by channel with payment settlements, refunds, advertising spend, and fulfillment costs. Test contribution margin after customer-acquisition costs, not just gross margin, and compare repeat-purchase cohorts over time.

Check store occupancy costs and confirm whether inventory is included in the deal. Assess whether aged stock needs a write-down and whether lease terms, marketplace concentration, and customer retention support the multiple.

10. Restaurants and Food Businesses

Industry Multiples

Use SDE for owner-operated restaurants and adjusted EBITDA for professionally managed groups. Small, single-location restaurants typically sell for 1.5×–3.0× SDE. Established operators generally fall at 3.0×–5.0× adjusted EBITDA, while stronger multi-unit and fast-casual groups reach 4.0×–7.0×.

EBITDA Size Bands

Compare restaurants by operating scale, not EBITDA band. These ranges do not apply to food manufacturers or distributors, whose assets and margins differ.

Operating scale	Valuation basis	Indicative range
Small, owner-operated single location	SDE	1.5×–3.0×
Established independent or small group with management coverage	Adjusted EBITDA	3.0×–5.0×
Three or more locations with repeatable unit economics and regional management	Adjusted EBITDA	4.0×–7.0×
Scaled franchise or franchisor platform	EBITDA	7.0×–12.0×, or higher in rare cases; usually outside ordinary SMB listings

Source Reliability

As of October 7, 2026, a source’s publication year alone does not tell you when its deals occurred. The supplied restaurant transaction table reports 1,774 transactions and a 2.26× cash-flow multiple. But cash flow is not EBITDA, so use the table as a market check - not an EBITDA benchmark.

For historical context, the Q2 2025 restaurant report recorded a $250,000 median sale price, up 13.6% year over year. Its 2.31× average cash-flow multiple was up from 2.16× in Q2 2024. These are historical cash-flow figures, not 2026 EBITDA benchmarks.

Listing Applicability

Before applying an EBITDA multiple, add market-rate pay to replace the owner to operating expenses. Check owner hours, manager tenure, staffing, and each unit’s food and labor costs.

Review lease assignment rights, renewal terms, rent escalators, and landlord consent. Five or more years left on the lease can support stronger pricing.

For franchise units, verify transfer fees and franchisor approval, and compare average unit volume with the system average. Value included real estate separately from the operating business, and account separately for required equipment capital expenditures. When earnings depend more on people and systems than on location, focus the pricing test on whether those people and systems can transfer to a new owner.

11. Marketing Agencies

Industry Multiples

Agency multiples increase when recurring revenue holds up after an owner transition. Recurring revenue and client retention matter more than size.

CTA Acquisitions’ October 5, 2026 guide puts project-only agencies at 2.0×–4.0× EBITDA, mixed project-and-retainer agencies at 4.0×–6.0×, and agencies with at least 60% recurring revenue at 6.0×–9.0×. Specialists in performance marketing, healthcare, B2B SaaS, fintech, data, or other niches with lasting client relationships may reach 7.0×–12.0×. Those higher multiples also require strong retention, repeatable delivery, and limited owner dependence.

EBITDA Size Bands

Size adds to the same driver: recurring revenue that transfers to a new owner. Haus Advisors’ September 5, 2026 guide gives these screening ranges - not transaction averages.

Adjusted EBITDA	Indicative multiple
Under $500,000	2.5×–4.0×
$500,000–$1 million	3.0×–5.0×
$1 million–$2.5 million	4.0×–6.5×
$2.5 million–$5 million	5.5×–8.5×
Above $5 million	7.0×–12.0×

Source Reliability

As of October 7, 2026, these guides report advisor ranges, not closed-deal medians. They also do not provide a transparent sample of 2026 U.S. closed deals. The published ranges differ, too. FE International’s May 20, 2026 guide gives 3.0×–7.0× for digital agencies, with strategic outliers at 8.0×–12.0×. Larger strategic acquisitions are not direct comparables for ordinary SMB listings.

Use these figures to screen listings, then check each agency’s revenue retention and founder dependence.

Listing Applicability

Measure retainer revenue as a share of net service revenue, excluding pass-through ad spend. Review top-10-client concentration, termination rights, renewal history, account profitability, and founder dependence. A retainer is worth less if clients can leave quickly or the seller is needed to deliver the work.

Check whether reported earnings are SDE or adjusted EBITDA, and keep market-rate management costs in the calculation when normalizing EBITDA. Use Kumo to organize agency listings, but treat asking prices only as screening figures. Confirm financials, add-backs, working capital, and earnouts before benchmarking.

12. Real-Estate Operations

Real-estate management businesses are valued based on contract stability, management depth, and whether the deal includes property ownership.

Industry Multiples

Value the operating business separately from owned real estate. For property-management companies with recurring revenue, 6.0×–9.0× adjusted EBITDA is a useful private-company screening range. Commentary from 2026 puts short-term-rental management at 4.0×–7.0×, commercial property management at 7.0×–10.0×, and HOA management at 9.0×–13.0×.

Use the size bands below to assess whether contracts and systems will carry over after a sale.

EBITDA Size Bands

No disclosed dataset here provides real-estate-specific closed-deal medians for these EBITDA bands. As EBITDA grows, buyers put more weight on contract durability, management depth, and reporting quality.

Adjusted EBITDA	Buyer focus
Below $500,000	Whether earnings cover a replacement manager and hold up after the owner leaves
$500,000–$1 million	Recurring fees, transferable contracts, and client concentration
$1 million–$3 million	Management depth, branch economics, retention, and add-on potential
Above $3 million	Scalable systems, transferable contracts, and reporting suited to institutional buyers

This segment draws on private-company commentary, public-company data, and SDE-based sold listings. The source type matters as much as the multiple.

Source Reliability

NYU Stern’s January 2026 public-company benchmark includes 54 real-estate operations and services companies and reports a 21.95× median EV/EBITDA multiple. That provides public-market context - not an SMB benchmark.

The referenced Main Street property-management sample includes 291 sold listings, with a 2.70× average SDE multiple and a $397,500 median sale price. It measures SDE rather than EBITDA, so it is not a direct EBITDA benchmark.

Listing Applicability

Separate recurring management fees from leasing commissions, sales commissions, and maintenance markups. Review retention by managed property, contract termination rights, geographic density, licensing, and trust account controls. HOA contracts tend to be steadier, while short-term-rental managers face tourism and regulation risk. These factors help explain where a business falls within a range; they do not automatically increase its multiple.

If the deal includes real estate, separate the operating value from the asset value before benchmarking the business. Normalize operating-company EBITDA for market rent, then value the property separately using an appraisal, capitalization-rate analysis, or comparable sales. Identify debt, operating cash, working capital, and client-held funds before reconciling enterprise value to equity value. Tenant security deposits are not freely available operating cash.

EBITDA Multiples by Business Size

The supplied summaries do not establish a verified multiple for every EBITDA band as of October 7, 2026. CTAcquisitions offers a broad 4.0×–7.0× screening range for businesses with roughly $1 million–$25 million in EBITDA. Its 5.5× midpoint is a broad summary statistic, not a band-specific benchmark. The source does not disclose the underlying observation period or sample size.

The table below shows the size bands supported by the supplied sources. All available evidence spans multiple industries.

Adjusted EBITDA band	Observed multiple or range	Typical transaction profile	Source	Observation period	Sample size	Limitations
Below $500,000	Insufficient comparable EBITDA data; approximately 2.0× SDE reported separately	Owner-operated or Main Street businesses; buyers may assess owner replacement and normalized cash flow	IBBA benchmark as summarized by Iconic	Q3 2025	Not stated in available summary	SDE is not EBITDA; small samples and listing-selection bias may apply
$500,000 to below $1 million	Insufficient comparable EBITDA data; approximately 2.5× SDE reported separately	Small established businesses, often still dependent on the owner	IBBA benchmark as summarized by Iconic	Q3 2025	Not stated in available summary	SDE-to-EBITDA conversion is not valid without company-specific adjustments
$1 million to below $3 million	Approximately 4.0×–7.0× broad lower-middle-market context only	Professionally managed lower-middle-market company with some add-backs and functional management	CTAcquisitions summary	2026 summary; underlying observation period not disclosed	Not stated in available summary	Broad cross-industry range; does not establish a size premium by itself
$3 million to below $5 million	Approximately 4.0×–7.0× where comparable private-company transactions qualify	Established lower-middle-market platform with stronger reporting, systems, and management depth	CTAcquisitions summary	2026 summary; underlying observation period not disclosed	Not stated in available summary	Must be adjusted for industry, growth, leverage, concentration, and earnings quality
$5 million to below $25 million	Approximately 4.0×–7.0× across industries; industry-specific evidence should take priority	Scaled lower-middle-market company; potentially attractive to corporate buyers or private equity	CTAcquisitions summary	2026 summary; underlying observation period not disclosed	Not stated in available summary	May mix transaction sizes, sectors, and buyer types

No supplied source breaks down closed 2026 deals by both industry and EBITDA band. Businesses with $25 million or more in EBITDA are excluded because no qualifying comparable private-company evidence was supplied.

Size can serve as a proxy for transferability, reporting quality, and capital intensity. Use it to adjust the industry benchmarks above - not replace them. These bands provide a screening framework, not a substitute for deal-level analysis.

When screening listings on Kumo, verify the earnings definition and price basis before comparing a listing with transaction benchmarks. The next section tests source reliability before applying these screening tools to SMB listings.

Benchmark Reliability and SMB Listing Comparisons

The industry ranges above are screening inputs, not ready-made valuations. This section checks whether a source provides a sound comparison for a specific SMB listing.

Source Dates, Sample Sizes, and Comparability

Here, 2026 means the latest source available as of October 7, 2026. Keep publication dates, transaction-close dates, and sample periods separate.

The tables below separate source quality from valuation output, helping you compare listings using evidence that matches the business.

Source or dataset	Publication and update dates	Transaction-close period	Observations	Company-size definition	Industry and earnings definitions	Geography	Evidence type	Main limitation
IBBA Market Pulse	2026 summary; exact dates not reported	Q1 2026	203 closed transactions from approximately 300 advisors; industry-and-size counts not disclosed	$2 million–$50 million deal prices; not EBITDA bands	Cross-industry; 4.0× median EBITDA multiple	U.S. context; geographic breakdown not disclosed	Advisor-reported closed transactions	A sample, not the full market; verify deal structure and earnings normalization
IBBA Q4 2025 Market Pulse	Exact dates not reported	Q4 2025 reporting cycle	Sample size not disclosed	Deal-size categories; definitions not disclosed	Advisor survey; statistic type not disclosed	U.S. context; geographic breakdown not disclosed	Closed-deal survey	Timing lag; does not provide transaction evidence through October 7, 2026
2026 industry guide	2026; exact dates not reported	Not applicable	Sample and industry-and-size counts not disclosed	Owner-operated versus management-run SMBs	Estimated ranges; SDE for smaller owner-operated firms, EBITDA for managed firms; cutoffs not disclosed	Not disclosed	Advisory guidance	Guidance, not verified closed-deal distributions
Kumo listings	Record access and latest change dates	No close period established	Comparable-cohort count not disclosed	Buyer-defined filters	Seller-reported earnings and asking prices; no transaction median	Global; restrict to the relevant U.S. market	Seller asking-price data	Listings establish neither verified earnings nor completed sales
Public-company trading multiples	Record valuation and financial-report dates	Not applicable	Dataset-specific; no combined count disclosed	Public companies; no comparable SMB cohort	Trading multiples; statistic varies by dataset	Dataset-dependent	Public-market evidence	Scale, liquidity, governance, disclosure, and capital access differ from SMBs

Relevant closed-deal counts matter more than total dataset size. Small samples, mixed deal types, and inconsistent earnings definitions make comparisons less reliable. Check these details before applying an industry multiple to an SMB listing.

Comparing SMB Asking Prices with Benchmarks

Metric	What it shows	What it cannot establish	Required validation
Asking-price multiple	Seller’s price relative to stated earnings	Market-clearing value or likely closing price	Price date and history, included assets, earnings period, and SDE versus EBITDA
Completed-deal multiple	Negotiated pricing in a closed transaction	Applicability to the target	Close date, consideration, deal structure, industry, size, and normalized earnings
Seller-reported EBITDA	Seller’s stated operating earnings	Accuracy, recurrence, or transferability	Financial statements, tax returns, bank records, and general ledger
Adjusted EBITDA	Earnings after proposed normalization	Legitimacy of every add-back	Supporting documents, recurrence, replacement compensation, and continuing costs
Enterprise value	Operating value before financing and equity adjustments	Seller proceeds or final equity check	Debt, cash, working capital, leases, expenses, and required investment

Start with the records: financial statements, monthly profit-and-loss statements, balance sheets, cash-flow information, tax returns, and supporting bank records. Then validate customer concentration, major contracts, backlog or recurring revenue, payroll, leases, debt, insurance and regulatory records, and add-backs.

Match closed-deal comparables by business model, size, geography, growth, recurring revenue, and concentration. Before choosing a multiple, assess how much the business depends on its owner and what investment it needs.

Reconcile enterprise value to equity value using debt, cash, normalized working capital, and debt-like obligations. Account separately for seller financing, earnouts, transaction expenses, and required investment. Only then compare the asking price.

Once the source passes these checks, compare the listing on earnings quality - not headline price. Use Kumo to track the listing source, access date, price history, and verification status. Confirm earnings, contracts, debt, cash, and working capital before making the comparison.

Conclusion: Benchmarks Guide Screening, Not Final Valuation

After checking source quality and whether listings are comparable, assess industry and EBITDA size together. They help screen businesses, not set prices. Recurring revenue, concentration, management depth, and capital needs can move a business toward either end of the range.

An asking-price gap calls for diligence; it doesn’t prove mispricing. Before calling a listing expensive or cheap, check whether revenue quality, owner dependence, deferred maintenance, owned real estate, equipment, or seller financing explains the difference.

As of October 7, 2026, transaction evidence for 2026 remains partial. Give more weight to comparable closed deals with disclosed dates, earnings definitions, and sample scope than to estimates or asking prices. Before making an offer, normalize EBITDA, reject unsupported add-backs, and reconcile enterprise value with debt, cash, working capital, and contingent payments through financial, legal, tax, and operational diligence. Benchmarks help screen SMB listings; verified earnings and deal terms determine value.

FAQs

Which multiple should I use if industry and size ranges conflict?

When industry and company-size ranges conflict, don’t apply one multiple across the board. Give more weight to closed-deal data from the specific subsector than to broad industry averages.

Then account for company size and how the business runs. Larger businesses generally command higher multiples because they offer greater stability and lower risk. Use a mix of comparable companies to keep the valuation balanced, and cross-check it with methods such as discounted cash flow.

How can I value a business with few comparable sales?

Use asset-based, income-based, and market-based valuations together rather than relying on a single method. Compare businesses with similar operations or in related industries, and normalize earnings or revenue to make those comparisons more consistent.

For businesses with predictable cash flows, consider discounted cash flow (DCF) analysis. Use sensitivity analysis to test your assumptions against small and medium-sized business (SMB) risks and volatility. Kumo’s aggregated listings, financial data, and search filters can help you find relevant comparisons and review historical trends.

How do I test whether an EBITDA-based price is affordable?

Start by normalizing EBITDA to remove nonrecurring items. Then apply a multiple that fits the company’s industry and size as a starting point. Test downside, base, and upside scenarios.

To move from enterprise value to price, subtract debt-like items and adjust for working capital and maintenance capex. EBITDA can overstate cash, so these adjustments matter.

If adjusted earnings don’t support the deal terms, negotiate the price or contingencies, such as true-ups or earnouts.

Related Blog Posts

• Business Valuation Methods: Expert Q&A Guide
• SDE vs. EBITDA: Choosing the Right Metric
• Top Valuation Methods for SMB Buyers
• How Industry Growth Impacts SMB Valuations