Small Business Valuation Multiples by Industry (2026 Data)
Most "typical multiple" figures online are guesses dressed up as data. The numbers below are sourced from real, closed small business sale transactions — Q3 2021 through Q2 2026 — not modelled or estimated.
No industry average is your valuation. The table below is where a conversation starts, not where it lands: within one industry line, two businesses genuinely trade at 4x and 6.5x on customer concentration, owner dependency and how much of the revenue is contracted. For the range your own figures support, with every step of the arithmetic shown, use the free business valuation calculator — it normalises your earnings and runs the multiple against them in your browser, with no email and nothing sent anywhere.
The overall picture (2026)
Across every sector BizBuySell tracks, the average is 2.58x SDE, and the median small business sells for $340,000. Sector averages run from about 1.95x (transportation and storage) to 3.28x (online and technology) — a spread of barely one and a third turns across the whole economy, which is why the sector you are in matters far less than most owners expect, and the size and quality of your earnings matter far more.
By deal size
Size moves the multiple more reliably than sector does. Bigger businesses have management depth, less owner dependence and a wider pool of buyers, including funds that cannot look at anything smaller. Note where the basis changes: below $2m these are multiples of SDE, above it they are multiples of EBITDA, and the two are not interchangeable.
| Purchase price | Multiple | Of what |
|---|---|---|
| Up to $500,000 | 2.0x | SDE |
| $500,000 – $1m | 2.8x | SDE |
| $1m – $2m | 3.1x | SDE |
| $2m – $5m | 4.0x | EBITDA |
| $5m – $50m | 5.8x | EBITDA |
IBBA and M&A Source Market Pulse, Q2 2026. The $5m–$50m figure is the highest that survey has reported since Q1 2022.
By industry
Every figure below is an SDE multiple on a realised sale price — what the business actually sold for, divided by its seller's discretionary earnings — averaged across closed transactions from 2021 to 2025. They are not asking prices, not EBITDA multiples, and not estimates of ours. Industries with recurring revenue, real property or equipment value, or a licensing barrier trade above the average; anything easy to start and easy to leave trades below it.
| Industry | Average SDE multiple | What drives it |
|---|---|---|
| Car washes | 4.93x | Property value plus recurring and subscription revenue |
| Hotels and motels | 4.75x | Property value carries much of the price |
| Assisted living and nursing homes | 4.30x | Licensing barriers and contracted occupancy |
| Funeral homes | 4.28x | Licensing, local monopoly characteristics, stable demand |
| Petrol and service stations | 3.76x | Property and fuel supply agreements |
| Laundromats | 3.65x | Recurring cash flow, low staffing dependency |
| Medical billing | 3.71x | Contracted recurring revenue |
| Machine shops and tool manufacturing | 3.45x | Equipment value and contracted work |
| Self-storage and warehouses | 3.41x | Property value, low operating complexity |
| Liquor stores | 3.33x | Licensing barrier, predictable footfall |
| Websites and e-commerce | 3.32x | Transferable, low fixed cost, no premises |
| Software and apps (SaaS) | 3.31x | Recurring subscription revenue |
| Waste management and recycling | 3.31x | Contracted routes and route density |
| Towing companies | 3.28x | Contracts with insurers and local authorities |
| Childcare and daycare | 3.27x | Licensing, waiting lists, recurring fees |
| Building material and hardware stores | 3.25x | Trade accounts and stock value |
| Equipment rental and dealers | 3.15x | Asset value plus recurring hire income |
| IT and managed service providers | 3.10x | Recurring contracts and switching cost |
| Home health care | 3.03x | Licensing and contracted hours |
| Manufacturing (all) | 3.00x | Plant value and contracted order books |
| Trucking companies | 3.00x | Fleet value and contracted lanes |
| Car dealerships | 2.90x | Franchise agreements and stock, thin margins |
| Insurance agencies | 2.86x | Renewal commission is genuinely recurring |
| Graphic and web design | 2.86x | Retainers help; owner dependence hurts |
| Auto repair and service | 2.82x | Equipment and a repeat local customer base |
| Pharmacies | 2.79x | Licensing barrier, prescription repeat volume |
| HVAC | 2.75x | Service contracts lift it; most of the work is one-off |
| Bars, pubs and taverns | 2.73x | Licence value, high fixed costs |
| Staffing agencies | 2.74x | Repeat clients, but margin pressure |
| Dental practices | 2.63x | Licensing and a recurring patient base |
| Property management | 2.70x | Management contracts renew |
| Grocery and supermarkets | 2.67x | Volume business on very thin margins |
| Electrical and mechanical contracting | 2.66x | Contracted work, owner-dependent |
| Architecture and engineering | 2.59x | Fee pipeline, heavy key-person risk |
| Schools, tutoring and test prep | 2.58x | Term-based recurring fees |
| Gyms and fitness centres | 2.55x | Memberships recur; churn and fit-out cost |
| Plumbing | 2.49x | Mostly one-off call-outs |
| Landscaping and lawn care | 2.46x | Seasonal, some recurring maintenance |
| Convenience stores | 2.39x | Thin margins, long hours |
| Bakeries | 2.40x | Perishable stock, labour intensive |
| Pest control | 2.40x | Recurring treatment contracts |
| Medical practices | 2.37x | Licensing, but high owner dependence |
| Massage businesses | 2.30x | Low barrier to entry |
| Clothing and accessory shops | 2.30x | Fashion risk and stock obsolescence |
| Health and beauty spas | 2.29x | Fit-out cost, discretionary spend |
| Accounting, CPA and tax practices | 2.23x | Annual recurring fees, key-person risk |
| Coffee shops and cafes | 2.20x | Rent and labour dominate |
| Cleaning and janitorial | 2.19x | Recurring contracts, very low barrier |
| Restaurants (independent) | 2.15x | Thin margins, high failure rate, fit-out risk |
| Dry cleaners | 2.09x | Declining demand, plant cost |
| Hair salons and barbershops | 2.04x | Stylists take clients with them |
| Catering | 2.00x | Event-driven, little contracted revenue |
| Law firms | 1.96x | Clients follow the partner |
| Delivery and service routes | 1.78x | Contract can be lost; little else transfers |
| Nail salons | 1.76x | Very low barrier to entry |
| Dollar and discount stores | 1.46x | Low differentiation, thin margins |
BizBuySell per-industry valuation benchmarks, closed transactions 2021–2025. These are averages: within most of these industries the middle half of sales spans roughly a full turn either side, so a business at the top of its range and one at the bottom are both normal.
Why your business isn't "the average"
Even within one industry line, multiples move on real, specific factors: customer concentration, owner dependency, how much of the revenue is contracted versus one-off, and how clean the financial records are. Two car washes can genuinely be worth 4x and 6.5x depending on exactly these factors — the industry number is a real starting point for a conversation, never the final answer.
Want your own Normalised EBITDA and an indicative range using these real mechanics? Try the free Business Valuation Calculator — no email required.
The Business Sale Readiness & Valuation Toolkit runs a full sensitivity table from 1.5x to 5.0x against your own real numbers, not a single industry average. It is $499, bought once, and there is a sample listing every sheet and formula to read first without giving an email address.
Sources, both read directly rather than quoted second hand: BizBuySell per-industry valuation benchmarks (closed transactions, 2021–2025, SDE divided by realised sale price, their definition) for the sector and industry figures; IBBA and M&A Source Market Pulse Q2 2026 for the deal-size bands. Every figure is as published. None is an Instilus estimate, and none has been converted between an SDE and an EBITDA basis.
Common questions
What is the average multiple a small business sells for?
About 2.58x SDE across every sector BizBuySell tracks, on a median sale price of $340,000. Sector averages run from roughly 1.95x in transportation and storage to 3.28x in online and technology, which is a spread of barely one and a third turns across the whole economy. Revenue multiples average about 0.67x.
Which industries sell for the highest multiples?
Car washes lead at about 4.93x SDE, then hotels and motels at 4.75x, assisted living and nursing homes at 4.30x and funeral homes at 4.28x. What they share is property value, a licensing barrier, or revenue that recurs without being re-sold. At the other end, dollar stores sell at about 1.46x, nail salons 1.76x and delivery routes 1.78x: easy to start, easy to leave, and little that transfers to a buyer.
Why do bigger businesses sell for higher multiples?
Size brings management depth, less owner dependence and a wider pool of buyers, including funds that cannot look at anything smaller. On IBBA Market Pulse figures for Q2 2026: up to $500,000 of purchase price trades at about 2.0x SDE, $500,000 to $1m at 2.8x, $1m to $2m at 3.1x, then the basis changes and $2m to $5m trades at 4.0x EBITDA and $5m to $50m at 5.8x EBITDA. An SDE multiple and an EBITDA multiple are not interchangeable.
Is the industry multiple what my business is worth?
No. It is a starting point for a conversation. Within one industry line, multiples move on customer concentration, owner dependency, how much revenue is contracted rather than one-off, and how clean the records are. Two car washes can genuinely be worth 4x and 6.5x on exactly those factors.
Where do these figures come from?
The industry and sector figures are BizBuySell per-industry valuation benchmarks: closed transactions from 2021 to 2025, SDE divided by the realised sale price, which is their own definition. The deal-size bands are IBBA and M&A Source Market Pulse for Q2 2026. Both were read directly rather than quoted second hand. Nothing is an Instilus estimate and nothing has been converted between an SDE and an EBITDA basis.
Next in your preparation journey: Business Sale Readiness Checklist: The 10 Areas That Actually Matter