Multiples for Larger Deals ($10m EBITDA) - What are you seeing?

June 08, 2023
by a searcher from Harvard University in Fort Lauderdale, FL, USA
Hi all.
We have a few companies and as we build out our long-term plan, I'm beginning to think about our strategy to eventually get us to a sale down the (very long) road.
I want to have reasonable expectations for an exit. I'm very familiar with the multiples for companies doing $500k to $1.5 million in EBITDA. Software companies excluded, a ballpark multiple in that space I believe is 2.5x to 4.0x.
But I have no idea what multiples look like for businesses doing $5 million to $15 million in EBITDA . Can anyone share any insight? Both in terms of what multiples look like, and what we need to do to get to a 7+ multiple :)
If we want to exit with a 10x multiple, are we being unrealistic? As a non-software company, but with strong growth and all the other things that buyers like to see, what kind of multiple will we be looking at if our EBITDA is $10m to $15m?
Adam
from Oregon State University in Kuna, ID, USA
from Massachusetts Institute of Technology in Portland, OR, USA