In 2026, most lower-mid-market businesses sell for 3.5x to 9x adjusted EBITDA: consumer brands 3.5x-9x depending on category, services 3.5x-9x, agencies 3.5x-7.5x, distribution and logistics 3.5x-7x, niche manufacturing typically 4x-8x, and software 6x-15x EBITDA or 2x-4.5x revenue. Below roughly $500k of earnings, buyers stop pricing on EBITDA altogether and pay 1.8x-4.2x seller's discretionary earnings. Your industry sets the band; the quality of your earnings decides where you land inside it, and the gap between the bottom and top of a band is usually worth more than several years of profit growth.
These are the ranges we use in our own valuation model and see across our deals in the UK, US, Europe and the Middle East. There is no public exchange for private companies, so any multiple you read is an estimate until a buyer signs. But the bands are stable enough to benchmark against, and the reasons a business trades at the top or bottom of its band are consistent across every sector we work in.
What are typical EBITDA multiples by industry in 2026?
Typical lower-mid-market ranges, applied to adjusted EBITDA, meaning operating profit restated for what the business earns under a new owner:
- Consumer brands. 3.5x-9x EBITDA by category and size. Repeat-purchase categories with retail distribution sit at the top; discretionary, trend-exposed product sits at the bottom.
- Services. 3.5x-9x. Contracted, recurring B2B services with a skilled workforce price near the top; one-off project work prices near the bottom.
- Software and apps. 6x-15x EBITDA, or 2x-4.5x revenue where growth is strong and the business is reinvesting rather than optimising for profit.
- Agencies. 3.5x-7.5x. Retained revenue, a defined niche and a leadership tier below the founder separate the top of this band from the bottom.
- Logistics. Typically 3.5x-7x. Contract logistics on multi-year agreements at the top; spot freight and brokerage at the bottom.
- Distribution. 3.5x-7x. Exclusive lines, technical product knowledge and sticky reorder patterns push the multiple up; pure box-shifting pulls it down.
- Manufacturing. Typically 4x-8x. Niche products that are specified in, with approvals or tooling lock-in, price at the top; commodity capacity prices at the bottom.
- Under roughly $500k of earnings. 1.8x-4.2x SDE, whatever the sector. At this size the buyer is usually an individual and the price reflects key-person risk.
Before you anchor on a number, look at what businesses like yours have actually sold for. Our comparable transactions tool lets you benchmark against real deals in your sector and size range.
Which consumer categories command the highest multiples?
Within the 3.5x-9x consumer band, category does as much work as size. In our model, food and beverage and personal care brands with genuine repeat purchase and multi-channel distribution occupy the top half of the band. Supplements earn strong repeat rates but get marked down for platform and regulatory exposure. Apparel, footwear and home products carry inventory risk and trend risk, so they start in the bottom half and have to earn their way up through brand strength and direct repeat revenue. A single-channel brand, however profitable, rarely escapes the bottom third of its category range. We break this down category by category in our guide to consumer business EBITDA multiples.
What pushes a business to the top or bottom of its band?
Buyers pay for future cash flow they believe will survive the handover. Every driver below is a version of that one question:
- Revenue quality. A £1 of contracted or subscription revenue is worth several times a £1 you have to win again every quarter. The higher your recurring or repeat share, the higher in the band you price.
- Customer concentration. One customer above 20-25% of revenue drags you down the band. Above 40%, many buyers walk regardless of price.
- Owner dependence. If sales, key relationships and daily decisions run through you, the buyer prices in the cost and risk of replacing you. A management tier that runs the business without you is a direct multiple upgrade.
- Growth with margin. Growth bought with collapsing margins impresses nobody. Steady growth at stable or improving margins is what moves you up a band.
- Channel and platform risk. One retailer, one marketplace or one ad channel supplying most of your demand is a discount, however good the numbers look today.
- Proof. Clean monthly accounts and defensible adjustments. Every add-back you can evidence is worth its multiple in price; every rejected one costs you credibility on all the others. Our guide to adjusted EBITDA add-backs covers the dividing line.
How do size tiers shift the base multiple?
Scale changes who can buy you, and the buyer pool sets the price. In our deals, the same business at three times the size routinely trades a full turn or more higher:
- Under roughly $500k of earnings. Priced on SDE at 1.8x-4.2x. Buyers are individuals financing a purchase, and diligence centres on whether the business survives without you.
- $500k-$1m EBITDA. Bottom half of your industry band. The pool widens to search funds and small trade buyers, but financing limits still cap the price.
- $1m-$3m EBITDA. The core of the band. Private equity bolt-ons and strategic trade buyers compete, and competition is what lifts multiples.
- $3m+ EBITDA. Top of the band and sometimes through it. At this size you are platform-grade for private equity, and a well-run process can produce offers a smaller identical business would never see.
Why do buyers pay different multiples for the same business?
Because they are buying different things. An individual buys an income and prices your risk. A trade buyer prices your business plus the costs it can strip out and the customers it can cross-sell, so it can justify more. A private equity platform prices what your business does for the value of everything else it owns. The spread between the first offer and the best offer is regularly one to two turns of EBITDA, which is why running a structured process with the right buyers in the room matters more than any single negotiation tactic. That is the discipline behind our sell-side process: 80% of the mandates we take on reach close, and the buyer who pays top of band is rarely the first one through the door.
What to do next
Benchmark yourself before a buyer does it for you. Run your numbers through our free 10-question valuation tool to see your indicative band, then work out which of the drivers above would move you up it. If the answer is a 12-24 month fix, that is time and margin worth investing before you go to market.
What is your business actually worth?
Run your numbers through our free valuation tool. Ten questions, an indicative range built on real transaction multiples, and the exact build-up behind it.
Get your free valuation ↗Frequently asked questions
What is a typical EBITDA multiple for a small business in 2026?
Below roughly $500k of earnings, buyers price on seller's discretionary earnings at 1.8x to 4.2x rather than EBITDA. Above that threshold, lower-mid-market businesses typically sell for 3.5x to 9x adjusted EBITDA depending on sector: agencies 3.5x-7.5x, distribution and logistics 3.5x-7x, consumer brands and services 3.5x-9x, and software 6x-15x. Recurring revenue and customer concentration decide where you land within the band.
What multiple do consumer brands sell for in 2026?
Consumer brands in the lower mid-market typically sell for 3.5x to 9x adjusted EBITDA. Repeat-purchase categories such as food and beverage and personal care with multi-channel distribution price in the top half of the band, while trend-exposed apparel and home products start in the bottom half. Single-channel brands rarely escape the bottom third of their category range, whatever their profit.
Why do software companies get higher valuation multiples than agencies?
Software sells for 6x-15x EBITDA against 3.5x-7.5x for agencies because contracted recurring revenue survives an ownership change with far less risk. Software revenue renews by default, scales without adding headcount in proportion, and does not depend on the founder's client relationships. Agency revenue must be re-won and re-staffed each year, so buyers pay less per pound of profit.
How do I increase my business valuation multiple before selling?
Work on the drivers buyers actually price: push recurring or repeat revenue up, get your largest customer below 20-25% of sales, build a management tier so the business runs without you, and produce clean monthly accounts with defensible add-backs. Most of these are 12-24 month fixes, and moving from the bottom of your industry band to the top is typically worth more than several years of profit growth.
Do valuation multiples depend on the size of the business?
Yes, because size changes who can buy you. Under roughly $500k of earnings buyers pay 1.8x-4.2x SDE. At $500k-$1m EBITDA you sit in the bottom half of your industry band; at $1m-$3m EBITDA private equity and trade buyers compete in the core of it; at $3m+ you become platform-grade and can price at the top of the band or through it.
When do buyers price on SDE multiples instead of EBITDA multiples?
Below roughly $500k of adjusted earnings, buyers switch from EBITDA multiples to SDE multiples of about 1.8x-4.2x, because at that size the owner’s labour is inseparable from the profit. Above that threshold, institutional buyers price on adjusted EBITDA and the industry bands in this guide apply.