Is 10X EBITDA normal for franchise groups?

August 05, 2024
by a searcher from Louisiana State University - E. J. Ourso College of Business in Atlanta, GA, USA
I'm talking to a broker representing a group of remediation franchises. The group is doing $500k EBITDA and the broker is adamant that it'll go for $5m. Most businesses I've reviewed are not franchises but are considered high at 6x.
Are valuations like this normal for franchise groups?
from New York University in New York, NY, USA
from College of William and Mary in Oldsmar, FL, USA