Aerospace & Defence Supplier — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
4×
Typical
6×
Max
8×
Revenue Model
Project-based
Capital Intensity
High
A typical multiple of 6× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Aerospace and defence component suppliers typically trade at 4×–8× EBITDA. Long-term approved supplier status on OEM programmes, AS9100 certification, and single-source positions on safety-critical parts support premium valuations. Government defence spending provides structural demand. Export licence complexity, programme delay risk, and tooling and equipment intensity are key acquisition considerations.
Key Value Drivers
- Approved supplier status on OEM programmes
- AS9100 and NADCAP certification
- Single-source on safety-critical components
- Defence spending tailwinds
- Long programme lifecycles
Key Risks
- Export licence and compliance complexity
- Programme delay or cancellation
- Tooling and equipment capital intensity
- Customer concentration in single programmes
- Supply chain audit and compliance burden
Related Industries
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.