2026 Small Business Valuation Multiples: 57 Industries

What this report covers

This is the most comprehensive free source of small business valuation multiples available online. It covers 57 service business industries with SDE multiples from closed transactions involving businesses with $200K–$5M in Seller’s Discretionary Earnings.

How to use this report:

1. Find your industry in the table below. Industries are grouped by category and sorted alphabetically.
2. Compare to the range. The median is the midpoint of closed deals. The low–high range shows what businesses at the bottom and top of the market actually sold for.
3. Understand what moves your number. Two HVAC companies can sell for very different multiples. The difference is almost always about recurring revenue, owner dependency, customer concentration, and financial documentation — not just size.

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Key Findings

The spread between the highest and lowest multiples is significant — roughly 1.4x SDE. That gap is driven primarily by the predictability and transferability of the cash flow. HVAC and IT Managed Services command premium multiples because they tend to have recurring service agreements, contractual revenue, and systems that operate beyond the owner. Painting and general contracting, by contrast, are more project-based and owner-driven, which introduces more risk for buyers.

Within any single industry, the range can be even wider. HVAC spans from 1.90x to 6.60x — the difference between a one-truck owner-operator and a multi-location operation with $3M+ in maintenance contracts. Industry matters, but how you run the business matters more.

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All 57 Industries: SDE & EBITDA Multiples

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How to Read This Data

What SDE means

SDE stands for Seller’s Discretionary Earnings. It’s the total financial benefit a single owner-operator takes from the business — net income plus owner’s salary, benefits, personal expenses run through the company, and non-cash charges like depreciation. SDE is the standard earnings metric for businesses under approximately $5M in annual earnings where the owner works in the business day-to-day. If a business has $400K in SDE and sells for a 2.5x multiple, the purchase price is roughly $1M.

What the range means

The low end of each range reflects businesses that are more owner-dependent, have project-based or one-time revenue, limited documentation, or declining trends. The high end reflects businesses with recurring contracts, management teams in place, clean financials, strong growth, and diversified customer bases. Most businesses trade near the median unless they have clear premium or discount characteristics.

SDE vs. EBITDA: when each applies

SDE is used when the owner works in the business — typically businesses under $2M–$3M in revenue. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is used for larger businesses that have a management layer — where a GM or ops manager runs day-to-day and the owner is not essential to operations. EBITDA multiples are higher than SDE multiples because the buyer doesn’t need to replace the owner’s labor — they’re buying a self-managing asset.

For a deeper explanation, see our full guide: How Service Businesses Are Valued.

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What Moves Your Multiple Up or Down

Industry sets the baseline. These five factors determine where you land within your range:

1. Recurring revenue. The single most powerful multiple booster. Businesses with 60%+ of revenue under contract or recurring command 30–40% higher multiples than project-based businesses in the same industry. Maintenance agreements, service contracts, and subscriptions all count. Why recurring revenue raises your multiple
2. Owner dependency. If the business cannot operate without you for two weeks, buyers see risk. Every key function that depends on the owner — sales, client relationships, estimating, field decisions — is a discount in a buyer’s model. Businesses with strong management teams sell for significantly more. Owner dependency and valuation
3. Customer concentration. If one customer represents more than 20–25% of revenue, buyers apply a material discount. Losing that customer post-close could destroy the economics of the deal. Diversified revenue across many customers reduces risk and increases your multiple.
4. Revenue trend. Three or more years of consistent revenue growth is one of the top factors in buyer interest and premium pricing. Declining revenue can cut your multiple in half. Flat revenue is neutral — but growth is what creates competitive bidding.
5. Financial documentation. Clean, professionally maintained books — ideally CPA-reviewed — can add 15–25% to your sale price. Messy financials are the number one reason deals fall apart during due diligence. Buyers who can’t verify the numbers won’t pay full price.

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Get Your Specific Number

Related Guide

How Service Businesses Are Valued: EBITDA, SDE & Multiples Explained

Related Guide

How to Increase Your Business Valuation Before You Go to Market

Last updated April 2026