HR Consulting Business — 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
3×
Typical
4×
Max
5.5×
Revenue Model
Recurring
Capital Intensity
Low
A typical multiple of 4× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
HR consulting businesses typically trade at 3×–5.5× EBITDA. Retained HR support on monthly fees, employment law expertise, and scalable SaaS-enabled delivery models are key valuation drivers. A multi-sector client base reduces concentration risk. Fee compression in commoditised compliance work and low switching barriers for clients are the main risks.
Key Value Drivers
- Retained HR support with monthly fees
- Employment law and tribunal expertise
- HR software platform integration
- Scalable SaaS-enabled service model
- Multi-sector client base
Key Risks
- Employment law changes increasing liability
- Competition from in-house HR and software
- Low switching barriers for clients
- Founder dependency on client relationships
- Fee compression in commoditised compliance
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.