EBITDA multiples by sector
There is no official multiple for any sector. Published figures can point you in the right direction, but only if they use the same metric, deal size, date and definition of value as your own numbers.
Before you look at the table
A sector multiple is a starting point. Within the same sector some companies sell for three times EBITDA and others for six, and the difference comes from the company itself.
The sector band helps you form a first view, and it does not set the price. One buyer may pay a premium for synergies or growth, another may apply a discount for customer concentration, capital expenditure or dependence on the owner.
Before you use any published figure, check whether it is an enterprise value or an equity value multiple, whether it is based on historical or forecast EBITDA, whether it comes from completed deals, listed companies or asking prices, and how leases are treated. From accounting periods starting on or after 1 January 2026, FRS 102 brings most leases onto the balance sheet, which moves rent out of operating costs and lifts reported EBITDA. A multiple calculated before that change and an EBITDA figure calculated after it do not belong in the same sum.
Bands by sector for smaller companies
The bands below are an indicative reference for UK companies with roughly £1m to £25m of turnover and normalised EBITDA of £150,000 to £3m. They apply to normalised EBITDA and express enterprise value, before debt, cash and other adjustments.
| Sector | Low | High | What sets the position within the band |
|---|---|---|---|
| Software and SaaS | 5.5x | 10.0x | Contracted recurring revenue, net revenue retention and sustainable growth set the position. |
| IT services and managed services | 5.0x | 8.5x | Managed service contracts give more visibility than project work billed by the day. |
| Industrial technology and automation | 4.5x | 7.5x | An installed base with service contracts can add recurring revenue and switching costs. |
| Healthcare, clinics and laboratories | 5.0x | 8.5x | CQC registration, regulation, reliance on key clinicians and the payer mix shape the range. |
| Engineering and technical consultancy | 4.0x | 6.5x | How transferable the know-how is and how stable the team is matter more than usual. |
| Professional and advisory services | 4.0x | 6.5x | Recurring client fees must be weighed against dependence on the founding partners. |
| Recurring B2B services | 4.0x | 6.5x | Cleaning, security, facilities maintenance: framework contracts and renewal rates. |
| Food and drink production | 3.5x | 6.0x | Brand, channel, customer concentration, input costs and export reach move the range. |
| Manufacturing and engineering | 3.5x | 6.0x | Recurring capital expenditure, capacity use and the treatment of plant need separate analysis. |
| Chemicals, plastics and rubber | 3.5x | 6.0x | Sensitive to energy costs and regulatory exposure, including UK REACH. |
| Specialist B2B distribution | 3.0x | 5.5x | Exclusive distribution rights can differentiate the business and concentrate supply at the same time. |
| General wholesale | 2.5x | 4.5x | Thin margins and little differentiation. |
| Retail | 2.5x | 4.5x | Depends on location and on whether the lease can be assigned on acceptable terms. |
| Construction, installation and refurbishment | 2.5x | 4.5x | The order book is reviewed for margin, delivery risk, retentions, bonds and working capital. |
| Transport and logistics | 3.0x | 5.0x | Customer concentration, the fleet, driver availability and fuel exposure drive the risk. |
| Hospitality and restaurants | 2.5x | 4.5x | Volatile trading and limited appetite from lenders. |
| Leisure, tourism and accommodation | 3.0x | 5.0x | Seasonality and reliance on booking platforms. |
| Education and training | 4.0x | 6.5x | Recurring enrolments and accreditations such as Ofsted or awarding body approval act as barriers. |
| Energy and renewables services | 4.0x | 7.0x | Long-term operations and maintenance contracts sit at the top of the band. |
| Marketing, media and agencies | 3.0x | 5.5x | Retainers give visibility when they are profitable, renewable and not tied to one person. |
| Property services and management | 3.0x | 5.5x | Managed portfolios and transactional activity carry different metrics and risks. |
| Other services | 3.0x | 5.0x | Generic band: refine it with an adviser who knows the sector. |
They are not a database of completed deals and they do not replace a valuation. They are an editorial summary of public UK market references, set deliberately below the headline survey averages because those averages include larger companies. Because public information on private transactions is incomplete, treat them as ranges for orientation, not as evidence of the price a specific company will achieve.
The size adjustment
Size matters because it changes the number of buyers, the liquidity of the investment, how much of the price can be funded with debt and how heavily the fixed costs of a deal weigh. Dealsuite's UK&I survey of M&A advisers for the second half of 2025 put the average multiple at 3.3x for companies with £200,000 of normalised EBITDA, 4.3x at £500,000, 4.9x at £1m and 5.6x at £2m.
The adjustment is not mechanical. A small company with distinctive technology or clear synergies for a particular buyer can sit well above the reference.
| Normalised EBITDA | Indicative adjustment | Reasoning |
|---|---|---|
| Under £250k | -1.5x | Fewer buyers can fund a deal this size, and fixed transaction costs weigh more heavily. |
| £250k to £500k | -1.0x | Typical buyers include competitors, management teams, individual acquirers and search funds. |
| £500k to £1,000k | -0.5x | The buyer pool widens, subject to recurring revenue, management depth, sector and bankability. |
| £1,000k to £2,000k | 0.0x | Relevant to small private equity funds, buy-and-build platforms and trade buyers. |
| £2,000k to £5,000k | +0.4x | Usually attracts a broader set of financial and trade buyers, including overseas acquirers. |
| Over £5,000k | +0.8x | Greater scale can widen funding and competition, without setting the multiple on its own. |
What decides your position within the band
Your position within the band depends on facts a buyer can verify. The ones that matter most are usually:
- The business runs without you. A team, processes and relationships that transfer to a new owner.
- Recurring, visible revenue. Retention, contracts, order book and the quality of the revenue, not just the percentage that recurs.
- Diversification. Concentration by customer, supplier, product, channel and country.
- A real second tier of management. A managing director who is not the owner, and who is staying.
- Profitable, defensible growth. A consistent track record and forecasts you can explain.
- Verifiable information. Audited accounts or at least reconciled monthly management accounts from a proper accounting system.
Our valuation tool applies these factors to your own figures.
How to compare an outside reference
Tables of mid-market deals or listed companies usually show higher multiples than a small private company will achieve. A blanket discount is not enough: you need to know which universe, period and metric sit behind the figure.
- Date. Interest rates and buyer appetite move with the cycle.
- Size. Compare turnover, EBITDA and enterprise value, not just the sector.
- Metric. Historical EBITDA, last twelve months and next year's forecast give different multiples.
- Scope. Check debt, cash, property, leases and assets outside the trade.
- Certainty of payment. Separate cash at completion from deferred consideration, rollover equity and earn-outs.
A reference is useful when it lets you explain the reasoning. If it only gives you a number, it is not enough to base a sale decision on.
When these bands do not apply
In some situations the sector multiple is the wrong framework altogether:
- Negative or near-zero EBITDA. There is nothing to multiply. The business is valued on its assets, its customer base or what it saves the buyer.
- Property and investment companies. The value lies in the property and investments, not in a trade.
- A strategic buyer with specific synergies. If your company removes a competitor, brings a licence or opens a customer the buyer has chased for years, it may pay above any band. It happens, but you cannot budget for it.
- Businesses in financial difficulty. Available cash, the alternatives and the time left before a possible insolvency weigh more than any sector multiple.
Sources, date and limits
References consulted in October 2026:
- Dealsuite UK&I M&A Monitor, February 2026, a survey of 106 UK and Irish M&A advisory firms covering the second half of 2025, with an average EV/EBITDA multiple of 5.4x and sector and size breakdowns.
- Price Bailey, Valuation Quarterly, September 2026, reporting median multiples below 5x for UK targets with an enterprise value under £5m.
- BDO Private Company Price Index, used only as an upper reference because it tracks larger private company deals.
The universes, deal sizes and methods differ, and information on private deals is incomplete. The bands in this guide are an indicative editorial summary. They do not reproduce any database and they are not an indication of an offer.
Frequently asked questions
Which EBITDA is the multiple applied to?
Usually the normalised EBITDA of the last financial year, or an average of the last two or three if results are volatile. Many buyers use the last twelve months to the most recent management accounts, which will not match your financial year end.
Have multiples gone up or down?
There is no single answer without fixing the sector, size, date and source. Multiples move with the cost of borrowing and the number of competing buyers. Dealsuite's UK average rose slightly to 5.4x in the second half of 2025, while other data providers reported medians drifting down from their 2023 levels. Always compare consistent, dated series.
Can I use the multiples of listed companies?
Only as a distant reference. A listed company offers instant liquidity, audited information, governance and scale. The discount a small private company trades at against a listed peer is large, and for the smallest companies it can exceed half.
