Your business sells for a multiple of its SDE or EBITDA. But that multiple isn’t a fixed industry number — it’s earned, and it moves with risk and quality.
What a multiple actually is
If a business earns $500,000 and sells at a 4x multiple, the price is $2,000,000. Simple math — but the multiple is where the real value is decided.
What moves your multiple up
- Low owner-dependence — the business runs without you
- Recurring, contracted, or repeat revenue
- Diversified customers and strong margins
- Clean books, documented systems, and a clear growth story
Why industry averages mislead
Two businesses in the same industry can sell at very different multiples. Sector benchmarks — see our industry pages — are a starting point, not your answer.