EBITDA Multiples for Aerospace Companies in SoCal

searcher profile

August 26, 2024

by a searcher from University of California, Los Angeles in Orange County, CA, USA

What kind of multiples do aerospace manufacturing companies in SoCal typically go for in the EBITDA range of $1M - $1.5M? Talking to a few guys who have a bit of experience and are saying 8 - 10x multiples are more accurate for aero manufacturing companies with ISO/AS certifications. However, that seems a bit high to me and does not align with the 4 - 5x multiples that I have read about on this forum.

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Reply by a searcher
from Malaspina University College in Calgary, AB, Canada
^redacted‌: As mentioned by others within this thread, there are multiple factors that will play a huge role in the EBITA multiples. However, well structured company with industry certifications and so on will be around 2.5X to 4X but that depends on multiple factors. 8x to 10x seems to be definitely high. thanks for the tag ^redacted‌
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Reply by an investor
from Northwestern University in Chicago, IL, USA
Could these types of companies get to 8-10x - it depends on the growth trajectory, the aerospace platforms they are on, and whether there are LTAs in place. The compeititve moats in these types of businesses do justify the premium. 8-10x would suggest there are strategic acquirers in the auction as well. It will always be tough for a searcher or independent sponsor to compete in a process like that.
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