Mortgage Lending 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
6×
Max
8×
Revenue Model
Recurring
Capital Intensity
High
A typical multiple of 6× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Specialist mortgage lending businesses typically trade at 4×–8× EBITDA. Net interest margin from a well-seasoned loan book, proprietary origination channels, and underserved market segment focus support premium valuations. Regulatory authorisation and balance sheet quality are critical acquisition metrics. Interest rate risk, credit loss volatility, and regulatory capital requirements are the primary risk factors.
Key Value Drivers
- Net interest margin from loan book
- Proprietary origination channels
- Underserved market segment focus
- Regulatory authorisation
- Scalable origination technology
Key Risks
- Interest rate risk on loan book
- Credit loss and arrears volatility
- Regulatory capital requirements
- Funding cost and liquidity risk
- Competition from mainstream lenders
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.