Business Broker — 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
2.5×
Typical
3.5×
Max
5×
Revenue Model
Transactional
Capital Intensity
Low
A typical multiple of 3.5× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Business brokerage businesses typically trade at 2.5×–5× EBITDA. Proprietary deal pipelines, established buyer networks, and niche sector or deal size specialisation support the upper end. Retainer and advisory income supplement to transaction success fees improves revenue quality. Transaction-based income with no guaranteed revenue and economic cycle sensitivity are persistent valuation challenges.
Key Value Drivers
- Proprietary deal pipeline and buyer network
- Recurring transaction success fees
- Niche sector or deal size specialisation
- Retainer and advisory income supplement
- M&A market activity tailwinds
Key Risks
- Transaction-based income with no guaranteed revenue
- Economic cycle sensitivity
- Key broker relationship dependency
- Regulatory exposure
- Liability on transaction warranties
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.