Multiples on Service Businesses

searcher profile

October 09, 2025

by a searcher from Dartmouth College in New York, NY, USA

Hi All - I've been seeing brokers push multiples above 5x on a number of deals that are $750K-$1 million in EBITDA (some as high as 6x). I've put in some bids closer to 4-4.5x that have been summarily rejected. What are people seeing in terms of multiples? (and does that include or exclude a salary for the owner?)
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commentor profile
Reply by a searcher
from University of Pennsylvania in Los Angeles, CA, USA
I think it's also important to be cautious around SDE vs. EBITDA. Brokers can sometimes use those interchangeably but they aren't. DM me and I'm happy to connect on what I'm seeing!
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Reply by a lender
from University of Utah in Sandy, UT, USA
I think people are seeing higher multiples but that doesn't mean that they are a good idea. I always preach that cash flow is the driving force in what the business should sell for (similar to a business valuation). With SBA rates at 10% a 5x-6x deal just does not work in 99% of the deals (probably 100%).
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