Manufacturing 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
4×
Typical
5×
Max
7×
Revenue Model
Mixed
Capital Intensity
High
A typical multiple of 5× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Manufacturing businesses typically trade at 4×–7× EBITDA. Businesses with proprietary products protected by IP, long-term supply agreements, and strong capacity utilisation attract the upper end. Capital intensity and commodity input cost exposure are consistent risk factors that weigh on valuations. Export revenue diversification and modern, well-maintained plant and equipment support stronger multiples.
Key Value Drivers
- Proprietary product with IP protection
- Long-term supply agreements
- Efficient production with high capacity utilisation
- Export revenue diversification
- Modern plant and equipment
Key Risks
- Commodity input cost volatility
- Customer concentration
- Capital intensity and reinvestment cycle
- Global supply chain disruption
- Labour costs and productivity
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.