PRIVATE BUSINESS VALUATION & MARKET MULTIPLES

Business Valuation Multiples by Industry: SDE, EBITDA & Revenue

What multiple should you use to value a private business? The answer depends on the company's industry, size, normalized earnings, growth, management structure, capital requirements, and financial risk.

Business Valuation Advisors examines actual private-business sale data, Seller's Discretionary Earnings (SDE), normalized EBITDA, and revenue multiples to help business owners, buyers, and advisors understand how market evidence translates into supportable business value.

2025 U.S. CLOSED-BUSINESS TRANSACTIONS

Selected Business Valuation Multiples by Industry

The following figures represent average reported sale-price-to-cash-flow multiples for selected industries in BizBuySell's full-year 2025 closed-transaction data.

Restaurants

2.26×

Average cash-flow multiple

HVAC Businesses

2.80×

Average cash-flow multiple

Machine Shops

3.72×

Average cash-flow multiple

Source: BizBuySell, Full-Year 2025 Closed Transactions by Sector. Machine shops include the published Machine Shops and Tool Manufacturers category. Reported cash flow is not necessarily EBITDA. These historical industry averages do not establish a multiple for any individual company. Different transaction samples and financial definitions require independent analysis.

THE FUNDAMENTAL VALUATION RELATIONSHIP

Value Indication = Normalized Earnings × Supportable Market Multiple

The earnings definition, financial reporting period, transaction-value convention, and comparable market evidence must be consistent. An industry average alone is not an independent conclusion of fair market value.

Need a Defensible Valuation for Your Business?

BVA evaluates normalized financial performance, comparable private-company transactions, business risk, and appropriate valuation methods to develop an independent conclusion of value.

Understanding the earnings basis is essential. For owner compensation, seller add-backs, and replacement-management adjustments, see BVA's SDE vs. EBITDA Business Valuation Guide.

SDE vs. EBITDA Guide

2025 Business Valuation Multiples by Industry

12 Industries — Closed Sales, Cash-Flow Multiples, Revenue Multiples & Median Prices

How much do privately held businesses sell for relative to their earnings? The following exhibit presents selected industry-level statistics from BizBuySell's full-year 2025 U.S. closed-business transaction data, including reported sales, average cash-flow multiples, average revenue multiples, and median sale prices.

These figures provide historical market context, not prescribed valuation multiples. They should be interpreted alongside transaction size, earnings definitions, management requirements, financial quality, growth, capital requirements, and the characteristics of the individual company being valued.

COVERAGE

12

Selected industries

OBSERVATION PERIOD

2025

Full-year closed sales

EARNINGS BASIS

Cash Flow

Not necessarily EBITDA

BVA MARKET EVIDENCE EXHIBIT 01

 2025 Private-Business Sale Multiples by Industry 

U.S. closed transactions reported in 2025. All monetary amounts are in U.S. dollars. On smaller screens, scroll horizontally to see all five columns.

    
Industry Reported Sales Avg. Cash-Flow Multiple Avg. Revenue Multiple Median Sale Price
Accounting & Tax Practices 194 2.33× 1.11× $500,000
Auto Repair & Service 247 2.70× 0.59× $399,000
Cleaning Businesses 154 2.30× 0.78× $325,000
Electrical & Mechanical Contracting 57 2.94× 0.59× $845,000
Home Health Care 92 2.84× 0.60× $667,000
HVAC Businesses 123 2.80× 0.62× $800,000
IT & Software Services 44 2.99× 1.12× $775,000
Landscaping & Yard Services 211 2.56× 0.76× $480,000
Machine Shops & Tool Manufacturers 46 3.72× 0.93× $853,000
Plumbing Businesses 61 2.62× 0.72× $837,500
Property Management 59 2.72× 0.93× $452,000
Restaurants 1,774 2.26× 0.37× $225,000

Source: BizBuySell, Full-Year 2025 Closed Transactions by Sector. Industry descriptions have been shortened where appropriate for readability. All numerical observations are reproduced from the corresponding published sector categories.

BVA MARKET DATA INTERPRETATION

 How to Interpret These Industry Valuation Multiples 

01 / CASH-FLOW DEFINITION

Cash Flow Is Not Automatically EBITDA

BizBuySell's reported owner cash-flow measure commonly reflects owner-operated business economics. An analyst must reconcile the actual definition to SDE or EBITDA before applying an observed multiple to the subject company's earnings.

02 / SAMPLE COMPOSITION

Transaction Counts Differ

Restaurant observations include 1,774 reported sales, while machine shops and tool manufacturers include 46. Differences in sample size and the companies represented limit direct cross-industry comparisons.

03 / STATISTICAL CONVENTIONS

Averages and Medians Are Different

The multiples are reported averages, while the sale prices are medians. An average multiple should not be multiplied by or mathematically reconciled to an independently reported median as though both describe the same transaction.

04 / TRANSACTION COMPARABILITY

Deal Structure Matters

Differences in included equipment, inventory, working capital, real estate, financing, assumed liabilities, and transaction structure can influence the observed price and calculated multiple.

SELECTED 2025 OBSERVATIONS

The reported average cash-flow multiple was 2.26× for restaurants, 2.80× for HVAC businesses, and 3.72× for machine shops and tool manufacturers.

These are descriptive observations from different transaction populations, not a ranking of industry attractiveness or evidence that an individual business should receive the published sector average. Each subject company's size, management structure, normalized earnings, risk, and transaction characteristics require independent evaluation.

ORIGINAL DATA SOURCE & METHODOLOGICAL LIMITATIONS

Primary source:  BizBuySell Insight Report — Full-Year 2025 Closed Transactions by Sector .

Reported transaction counts may exceed the number of transactions with sufficient financial information to calculate each multiple. The cash-flow and revenue ratios are average reported multiples, while the sale prices are medians.

Business Valuation Advisors, Inc. has not independently verified the underlying broker-reported transactions. These benchmarks should not be treated as prescribed valuation multiples, EBITDA trading multiples, or independent conclusions of fair market value.

Historical market evidence for educational purposes only. These sector observations are based on BizBuySell's published full-year 2025 reported closed-business sales data. They do not establish the value of any particular company. A defensible valuation requires subject-specific analysis, consistent earnings and transaction-value definitions, relevant comparable selection, valuation assumptions, and reconciliation of appropriate valuation approaches.

SDE vs. EBITDA vs. Revenue Multiples

Earnings Definitions, Transaction-Value Conventions & Market Comparability

Business valuation multiples measure different relationships between a company's financial performance and its market value. Seller's Discretionary Earnings (SDE), normalized EBITDA, and revenue can each provide useful valuation evidence, but they reflect different economic assumptions.

The fundamental requirement is consistency: the earnings or revenue measure, transaction-value definition, financial reporting period, and underlying market comparables must all be economically compatible.

01 / OWNER-OPERATOR EARNINGS

SDE Multiples

Comparable Transaction Value

divided by

Recast SDE

Typical application: Smaller, owner-operated businesses where the purchaser expects to perform the working owner's role.

Earnings convention: Generally includes one working owner's compensation and benefits previously deducted in reported earnings, plus other supportable adjustments.

Important: Private-business sale prices are not automatically equivalent to enterprise value. Verify included assets, liabilities, working capital, and deal terms.

02 / MANAGEMENT-ADJUSTED EARNINGS

EBITDA Multiples

Enterprise Value

divided by

Normalized EBITDA

Typical application: Businesses with an established or economically supportable management structure, including many middle-market acquisitions.

Earnings convention: Operating earnings before interest, income taxes, depreciation, and amortization, after supportable normalization and necessary management costs.

Important: EBITDA is not free cash flow. Capital expenditures, working capital needs, cash taxes, and other economic requirements still matter.

03 / TOP-LINE BUSINESS SCALE

Revenue Multiples

Enterprise Value

divided by

Comparable Revenue

Typical application: Businesses where revenue scale, recurring contracts, growth, or industry economics provide meaningful market evidence.

Financial convention: Measures value relative to revenue rather than operating profit. Comparable companies must have sufficiently similar margins and economic characteristics.

Important: Revenue multiples can mislead when profitability, capital intensity, growth, or revenue recognition differs materially.

BVA MARKET APPROACH FRAMEWORK

 Four Conventions That Must Be Reconciled 

Market Convention Required Analytical Review
01 / Value Numerator Determine whether the observed multiple uses enterprise value, equity value, broker-reported sale price, or another transaction-value definition. Reconcile cash, debt, assumed liabilities, transferred assets, and other deal components.
02 / Financial Denominator Use consistently defined SDE, EBITDA, or revenue. Evaluate owner compensation, discretionary adjustments, nonrecurring items, related-party transactions, and any differences in the financial definitions used by comparable transactions.
03 / Reporting Period Identify whether multiples use the latest fiscal year, trailing twelve months, historical normalized earnings, or forward-looking results. Financial periods and growth expectations should be comparable.
04 / Transaction Perimeter Evaluate whether inventory, fixed assets, working capital, real estate, seller financing, contingent consideration, and other components are included in the observed transaction price. Asset sales and stock sales may require different reconciliations.

Mobile visitors can scroll the table horizontally. Published transaction databases may use different definitions and reporting conventions; the analyst must examine those definitions before applying an observed multiple.

BVA FINANCIAL EXHIBIT — ILLUSTRATIVE MULTIPLE RECONCILIATION

 How Revenue and EBITDA Multiples Can Describe the Same Value 

Assume a fictional business has $2 million in annual revenue, $200,000 in normalized EBITDA, and an illustrative operating enterprise value of $1 million. Its EBITDA margin is 10%.

ANNUAL REVENUE

$2,000,000

Illustrative sales

NORMALIZED EBITDA

$200,000

10% EBITDA margin

ASSUMED ENTERPRISE VALUE

$1,000,000

Same value numerator

ENTERPRISE VALUE / REVENUE

$1,000,000 / $2,000,000

0.50× Revenue

Value expressed relative to annual sales.

ENTERPRISE VALUE / EBITDA

$1,000,000 / $200,000

5.00× EBITDA

Value expressed relative to normalized operating earnings.

MATHEMATICAL RELATIONSHIP

EV / Revenue = (EV / EBITDA) × EBITDA Margin

0.50× = 5.00× × 10%

The two ratios express the same assumed $1 million enterprise value using different financial denominators. They are not independent valuation indications and must not be averaged or treated as separate corroborating market approaches.

Why margins matter: A revenue multiple cannot be evaluated independently of the company's profitability. Businesses with identical revenue but substantially different EBITDA margins may warrant materially different enterprise-value-to-revenue multiples, even within the same industry.

BVA VALUATION PRINCIPLE

 Comparable Multiples Require Comparable Financial Definitions and Transaction Economics. 

A valuation professional must determine what the market evidence measures before applying it to a subject company. A higher observed multiple is not inherently better, and a lower multiple is not inherently more conservative. The selected measure must be supported by the facts, transaction terms, and economics of the business being valued.

RELATED BVA VALUATION ANALYSIS

For a detailed explanation of owner compensation, replacement management, and seller add-backs, read our  SDE vs. EBITDA Business Valuation Guide .

Educational illustration only. All company-specific financial amounts and the $1 million enterprise value are hypothetical. The 0.50× revenue and 5.00× EBITDA ratios are mathematically implied, not independently selected market multiples. Actual business valuations require financial normalization, appropriate comparable-market evidence, review of transaction definitions, capital requirements, operating risks, and reconciliation of value indications. This illustration is not a completed appraisal or conclusion of fair market value.

SOURCES OF MARKET EVIDENCE
Where Business Valuation Multiples Come From
Private Transaction Databases

Private transaction databases compile reported sales of privately held businesses and can provide evidence of observed pricing relative to SDE, EBITDA, revenue, or other metrics. Their usefulness depends on the quality of the underlying transaction data, how financial measures are defined, and how closely the sold companies resemble the subject business.

Guideline Public Companies

Public-company market multiples can provide useful evidence for larger or more scalable businesses, but direct application to a closely held company usually requires judgment. Differences in size, liquidity, diversification, access to capital, management depth, and reporting quality can make public-company multiples substantially different from private-company transaction multiples.

Industry & Broker Market Data

Industry reports, broker databases, and market studies can help establish broad pricing ranges and transaction trends. These sources are most useful as benchmarks or reasonableness checks rather than automatic valuation formulas, particularly when the underlying companies vary significantly in size, profitability, growth, or risk.

Subject-Specific Market Evidence

The strongest market analysis considers how the subject company compares with the companies behind the observed multiples. Revenue scale, normalized earnings, margins, growth, customer concentration, recurring revenue, owner dependence, management depth, capital requirements, geography, and transaction terms can all affect comparability.

What Makes a Business Valuation Multiple Higher or Lower?

Eight Factors Influencing Business Risk, Earnings Quality, Growth & Transferability

Two privately held businesses operating in the same industry can command materially different valuation multiples, even when their reported EBITDA or Seller's Discretionary Earnings (SDE) are identical.

Market participants evaluate the quality, sustainability, growth prospects, and transferability of earnings when pricing an acquisition. The following eight factors help explain why one company may support a higher or lower multiple than otherwise comparable businesses.

BVA MARKET MULTIPLE FRAMEWORK

 A Valuation Multiple Reflects Expected Earnings, Growth, Risk & Market Comparability 

Each factor must be assessed relative to the market transactions used as comparables. No factor automatically justifies a fixed premium or discount, and the analyst must avoid double-counting risks already reflected in normalized earnings, selected market evidence, or another valuation adjustment.

FACTOR 01 / EARNINGS PERFORMANCE

Growth & Earnings Stability

Favorable evidence: Sustained sales growth, stable margins, repeatable earnings, and a credible financial outlook can support stronger market pricing.

Risk factors: Declining revenue, volatile profitability, inconsistent margins, or unsupported projections can reduce confidence in future earnings.

Evidence to review: Historical financial trends, normalized earnings, backlog, and forecast assumptions.

FACTOR 02 / REVENUE VISIBILITY

Recurring & Repeat Revenue

Favorable evidence: Contracted recurring revenue, strong retention, renewal history, and repeat customers can improve predictability.

Risk factors: One-time projects, short-term contracts, weak renewals, and inconsistent customer demand can increase uncertainty.

Evidence to review: Revenue by customer, renewal terms, retention, contract rights, and repeat-purchase history.

FACTOR 03 / REVENUE DIVERSIFICATION

Customer Concentration

Favorable evidence: A diversified customer base with durable relationships can reduce the potential earnings impact of losing any one account.

Risk factors: Heavy reliance on a small number of customers, especially without enforceable contracts or transferable relationships, can increase risk.

Evidence to review: Top-customer revenue percentages, gross margins, contract terms, retention, and relationship ownership.

FACTOR 04 / OPERATIONAL TRANSFERABILITY

Owner Dependence & Management Depth

Favorable evidence: An experienced management team, documented processes, and relationships that can survive an ownership transition.

Risk factors: Dependence on the seller for key sales, technical knowledge, licensing, customer relationships, or daily management.

Evidence to review: Owner responsibilities, staffing, succession plans, compensation requirements, and operating procedures.

FACTOR 05 / FINANCIAL RELIABILITY

Margins & Quality of Earnings

Favorable evidence: Sustainable margins, supportable adjustments, reliable records, and earnings that reconcile to operating activity.

Risk factors: Aggressive add-backs, inconsistent accounting, unexplained margin changes, or weak financial documentation.

Evidence to review: Earnings normalization, bank reconciliations, revenue recognition, margins, and Quality of Earnings findings.

FACTOR 06 / BUSINESS SCALE

Company Size & Operating Scale

Favorable evidence: Scale that supports professional management, diversification, established systems, and a broader pool of buyers.

Risk factors: Small operational scale, limited staff redundancy, weak systems, or substantial dependence on a few relationships.

Evidence to review: Revenue, normalized earnings, staffing capacity, transaction-size comparables, and buyer universe.

FACTOR 07 / CASH FLOW CONVERSION

Capital Expenditures & Working Capital

Favorable evidence: Manageable reinvestment requirements, disciplined receivables, stable inventory, and dependable conversion of earnings into cash.

Risk factors: Deferred equipment replacement, high maintenance capital expenditures, slow collections, or substantial ongoing working capital needs.

Evidence to review: Maintenance CapEx, equipment condition, cash conversion, receivables, payables, and normal working capital requirements.

FACTOR 08 / COMPETITIVE ADVANTAGE

Competitive Position & Transferability

Favorable evidence: Differentiated offerings, durable customer relationships, proprietary capabilities, and contractual or operational advantages transferable to a buyer.

Risk factors: Weak differentiation, easily displaced customers, expiring contracts, or competitive advantages dependent on the seller personally.

Evidence to review: Customer contracts, competitive landscape, licenses, intellectual property, workforce stability, and transfer restrictions.

APPLYING MARKET EVIDENCE

 How BVA Evaluates Multiple Selection 

01 / ESTABLISH MARKET EVIDENCE

Select relevant transactions using comparable industries, financial measures, transaction sizes, and definitions of value.

02 / ANALYZE COMPANY DIFFERENCES

Evaluate the eight factors against comparable businesses, considering risks and advantages not already captured in the market evidence.

03 / RECONCILE & DOCUMENT

Select a supportable multiple or range, document the rationale, and reconcile the resulting operating-value indication to the appropriate value basis.

IMPORTANT VALUATION DISTINCTION

A Stronger Company Does Not Automatically Receive a Prescribed Multiple Premium.

Observed valuation multiples reflect transaction-specific economics and market conditions. A company characteristic may affect expected earnings, growth, risk, or the appropriate market multiple. The analyst must determine where the effect is already reflected to avoid duplicating adjustments. Different acquisition structures, buyer synergies, and asset or liability assumptions may also limit direct comparability.

Educational discussion only. These factors are considerations for analyzing business risk, growth, operating economics, and market comparability—not a scoring formula or a prescribed schedule of valuation premiums and discounts. An independent conclusion of business value requires appropriate evidence, valuation assumptions, and reconciliation of the relevant methods.

WORKED VALUATION EXAMPLE

How the Same EBITDA Produces Different Value Indications

Assume a privately held business generates $500,000 of normalized EBITDA. If market evidence supports different valuation multiples based on the company’s risk, growth, size, transferability, and other characteristics, the resulting value indications can vary significantly.

At a 3.0× EBITDA multiple, the indicated enterprise value would be approximately $1.5 million. At 4.0× EBITDA, the indication increases to $2.0 million. At 5.0× EBITDA, the same $500,000 of earnings produces an indicated enterprise value of $2.5 million.

The difference is not caused by a change in EBITDA—it reflects a different assessment of the quality, durability, growth prospects, and risk of those earnings.

These figures are illustrative only. A 3×, 4×, or 5× multiple should not be interpreted as an industry benchmark or valuation rule. The appropriate multiple should be supported by relevant market evidence and applied to a consistently defined earnings measure.

Enterprise Value vs. Equity Value: What Does the Multiple Actually Produce?

A Practical $2 Million Business Valuation & Equity Reconciliation

Applying a valuation multiple to normalized earnings generally produces an indication of operating enterprise value when the underlying comparable transactions are measured on an enterprise-value basis. That value does not automatically equal the amount attributable to shareholders.

A business valuation must reconcile operating value with interest-bearing debt, excess cash, nonoperating assets, debt-like obligations, and other relevant balance-sheet items. The valuation perimeter and transaction assumptions determine which adjustments are appropriate.

OPERATING BUSINESS VALUE

Enterprise Value

Measures the value of the operating business attributable to its capital providers, before reconciling the financing structure and separately identified nonoperating assets.

EBITDA-based market multiples commonly imply enterprise value when the comparable data have been adjusted to a consistent operating-value basis.

VALUE ATTRIBUTABLE TO OWNERSHIP

Equity Value

Measures the residual value attributable to shareholders after appropriate adjustments for debt, excess cash, nonoperating assets, and other economic claims.

The applicable ownership interest, standard of value, valuation premise, and shareholder rights may require additional analysis.

SIMPLIFIED ENTERPRISE-TO-EQUITY RECONCILIATION

 Equity Value = Enterprise Value − Debt + Excess Cash 

This simplified expression assumes that normal working capital and ordinary operating assets are already included in the enterprise value, with no additional debt-like liabilities or nonoperating assets requiring adjustment. Actual valuations may require a more detailed reconciliation.

BVA FINANCIAL EXHIBIT — ILLUSTRATIVE VALUATION BRIDGE

 From $2 Million Enterprise Value to $1.6 Million Equity Value 

Assume the same fictional company from the preceding example generates $500,000 of normalized EBITDA. For illustration, a 4.0× EBITDA multiple implies $2 million of cash-free, debt-free operating enterprise value. The company has $600,000 in interest-bearing debt and $200,000 in cash above its normal operating requirements.

STEP 01 / CALCULATE OPERATING ENTERPRISE VALUE

$500,000

Normalized EBITDA

×

4.0×

Assumed multiple

=

$2,000,000

Enterprise value

STEP 02 / RECONCILE OPERATING VALUE TO EQUITY VALUE

Valuation Reconciliation Amount
Indicated operating enterprise value $2,000,000
Less: Interest-bearing debt ($600,000)
Add: Excess cash above operating needs +$200,000
ILLUSTRATIVE 100% EQUITY VALUE $1,600,000

EQUITY VALUE RECONCILIATION

$2,000,000 − $600,000 + $200,000

= $1,600,000

The illustrative 4.0× multiple is assumed, not independently selected from transaction evidence. This simplified calculation assumes a 100% ownership basis, normal working capital included in operating enterprise value, and no other necessary equity-bridge adjustments.

IMPORTANT TRANSACTION CONSIDERATIONS

 What Else Can Affect the Enterprise-to-Equity Bridge? 

01 / DEBT & DEBT-LIKE ITEMS

Outstanding loans, unpaid seller obligations, certain accrued liabilities, and financing-related claims may require separate treatment.

02 / OPERATING & EXCESS CASH

Cash necessary to operate the business is not automatically excess cash. Only cash beyond supported operating requirements may be added separately.

03 / WORKING CAPITAL

A normalized level of operating working capital is commonly assumed in operating-business value. A purchase agreement may require a working capital peg or closing adjustment.

04 / NONOPERATING ASSETS & DEAL TERMS

Nonoperating real estate, investments, assumed obligations, transaction expenses, and negotiated deal structures can affect the equity bridge or eventual seller proceeds.

BVA VALUATION INTERPRETATION

 Enterprise Value, Equity Value & Seller Proceeds Are Not the Same. 

The enterprise-value indication reflects the operating business under the assumed valuation perimeter. Equity value reflects the interests attributable to owners after the relevant balance-sheet reconciliation.

Actual seller proceeds may differ further because of transaction expenses, taxes, debt repayments, purchase price adjustments, escrow arrangements, contingent consideration, and negotiated allocation of assets and liabilities.

RELATED BVA TRANSACTION ANALYSIS

Acquisition valuation:  Business Acquisition & Transaction Valuation Services 

Working capital & earnings quality:  Quality of Earnings & Financial Due Diligence 

Fictional educational illustration only. The $500,000 EBITDA, 4.0× valuation multiple, $2 million operating enterprise value, $600,000 of interest-bearing debt, and $200,000 of excess cash are hypothetical. The resulting $1.6 million represents a simplified 100% equity-value indication before any additional ownership-level adjustments. It is not a completed appraisal, transaction price, or independently concluded fair market value.

Why Industry Average Multiples Can Be Misleading

An industry average is a starting reference point—not a substitute for analyzing the companies, transactions, earnings definitions, and risks behind the data.

Business owners frequently encounter statements such as “companies in this industry sell for 4× EBITDA” or “businesses like this trade at 3× SDE.” Those figures can provide useful context, but applying an industry average directly to a specific company can produce a misleading result.

An average or median multiple may combine businesses of very different sizes, growth rates, margins, customer concentration, management structures, geographic markets, and financial quality. It may also mix asset sales and stock sales, strategic acquisitions and financial-buyer transactions, or transactions using different definitions of SDE, EBITDA, and purchase price.

Company size alone can materially affect comparability. A business generating $250,000 of SDE may compete for a very different buyer universe than a professionally managed company generating $2 million of EBITDA, even if both operate in the same industry. Larger companies may have greater diversification, management depth, systems, access to capital, and institutional buyer interest, while smaller businesses may carry greater owner dependence or concentration risk.

The underlying transaction terms matter as well. Seller financing, earnouts, rollover equity, assumed liabilities, retained working capital, real estate, equipment, and other deal components can affect the reported purchase price and therefore the apparent valuation multiple.

For these reasons, a defensible market approach should evaluate the distribution and comparability of the available market evidence rather than simply selecting an industry average. The objective is not to find the most favorable multiple—it is to identify the market evidence that best reflects the economics and risk of the subject company.

Valuation Multiple vs. Capitalization Rate: What’s the Difference?

A valuation multiple and a capitalization rate describe the same economic relationship from opposite directions, but only when they are applied to the same normalized earnings stream.

A valuation multiple expresses value as a multiple of earnings. A capitalization rate expresses value as the required return applied to a sustainable earnings measure. When the earnings definition and valuation basis are consistent, the two are mathematical reciprocals.

Valuation Multiple = 1 ÷ Capitalization Rate

For example, a 25% capitalization rate corresponds to a 4.0x multiple. A 20% capitalization rate corresponds to a 5.0x multiple. A 33.3% capitalization rate corresponds to approximately a 3.0x multiple.

- 25% Cap Rate = 4.0x Multiple

- 20% Cap Rate = 5.0x Multiple

- 33.3% Cap Rate = ~3.0x Multiple

The relationship is intuitive: a lower capitalization rate generally implies lower perceived risk and a higher multiple, while a higher capitalization rate generally implies higher perceived risk and a lower multiple.

That said, the relationship should not be applied mechanically. A transaction multiple observed in the market is not automatically interchangeable with the reciprocal of a capitalization rate developed under the income approach. The earnings measure, growth assumptions, risk profile, and valuation purpose must all be economically consistent.

2025 CLOSED-TRANSACTION MARKET EVIDENCE

Business Valuation Multiples by Industry

How much do privately held businesses sell for relative to their earnings? This reference exhibit examines selected 2025 U.S. business transactions, including reported sale-price-to-cash-flow multiples, revenue multiples, transaction counts, and median sale prices across major industries.

Drawing on BizBuySell's published transaction statistics, BVA explains how these market benchmarks should be interpreted—and why business size, normalized earnings, owner dependence, growth, and transaction structure can materially affect the multiple applicable to a specific company.

The figures represent observed market evidence, not prescribed valuation multiples or independent conclusions of fair market value.

BIZCOMPS: How Comparable Business Sales Support Valuation

Industry Screening, SDE Multiples, Transaction Terms & Asset-Sale Comparability

Published industry averages provide useful context for business valuation, but individual comparable transactions may offer more relevant evidence when their financial characteristics and transaction terms closely resemble the subject company.

Business Valuation Advisors, Inc. evaluates private-business sale information from sources such as BIZCOMPS to examine observed sale prices relative to Seller's Discretionary Earnings (SDE), annual revenue, business characteristics, and transaction terms. The objective is to select economically comparable evidence, not simply apply a broad industry average.

BROAD MARKET CONTEXT

Industry-Level Transaction Statistics

Published industry statistics summarize transactions across a broad population. They help establish market context, but averages may conceal important differences in business size, profitability, management, geography, and transaction structure.

SUBJECT-SPECIFIC MARKET ANALYSIS

BIZCOMPS Comparable Transaction Screening

Transaction-level records allow an analyst to examine individual business sales, apply relevant screening criteria, consider observed pricing distributions, and evaluate the transactions most comparable to the subject company.

BVA COMPARABLE TRANSACTION FRAMEWORK

 How Comparable Private-Business Transactions Are Evaluated 

Selecting meaningful comparable transactions requires more than matching an industry code. BVA considers the financial and operating characteristics of the subject company and the available transaction evidence.

01 / INDUSTRY COMPARABILITY

Industry & Business Model

Examine NAICS or SIC classifications alongside the actual business descriptions, service mix, customer base, and operating model. Similar industry codes do not necessarily establish comparable economics.

02 / FINANCIAL SCALE

Revenue, SDE & Sale Price

Compare revenue scale, seller's discretionary earnings, profitability, and transaction size. A small owner-operated company may not be economically comparable to a larger professionally managed business.

03 / MARKET CONTEXT

Transaction Date & Geography

Evaluate the relevance of historical sale dates, regional economic conditions, geographic concentrations, and market changes. Older transactions or geographically concentrated samples may require additional scrutiny.

04 / TRANSACTION ECONOMICS

Assets, Inventory & Financing Terms

Review reported sale price, furniture, fixtures and equipment, inventory, down payment, financing arrangements, and relevant deal terms. The included assets and liabilities must match the value basis being analyzed.

05 / EARNINGS CONSISTENCY

Owner Compensation & SDE

Reconcile the subject company's SDE to the earnings definition used in the comparable transactions. BIZCOMPS generally assumes one working owner; required management and labor costs must be considered when analyzing a different buyer profile.

06 / MULTIPLE SELECTION

Distribution, Outliers & Judgment

Evaluate the range, median, dispersion, and reliability of selected transaction multiples. Unusual observations, incomplete records, and differences in business characteristics require professional judgment rather than mechanical averaging.

CRITICAL BIZCOMPS TRANSACTION CONVENTION

BIZCOMPS Sale Prices Generally Exclude Inventory

BIZCOMPS reports primarily small-business asset sales. Its standardized sale-price measure generally includes business goodwill and furniture, fixtures and equipment, while inventory is identified separately. Cash, receivables, real estate, and assumed liabilities are generally outside the reported sale-price perimeter.

Consequently, a sale-price-to-SDE multiple derived from this source should not automatically be treated as a stock-equity multiple or an enterprise-value multiple from a different transaction database. The analyst must reconcile the included assets, working capital, inventory, and financing obligations before applying market evidence.

BVA MARKET EVIDENCE EXHIBIT 02 — FICTIONAL EXAMPLE

 How an SDE Multiple and Inventory Treatment Affect an Asset-Sale Indication 

Assume a fictional comparable business sold for $600,000, excluding inventory, and reported $240,000 in recast SDE. The illustrative transaction price includes the goodwill and operating furniture, fixtures and equipment contemplated by the asset-sale convention.

COMPARABLE SALE PRICE

$600,000

Excluding inventory

COMPARABLE SDE

$240,000

One-owner earnings

IMPLIED SALE / SDE

2.50×

$600K / $240K

For a separate fictional subject business, assume $260,000 of appropriately recast SDE and $75,000 of verified transferable inventory. Applying the same hypothetical multiple demonstrates how the underlying transaction-price convention affects the resulting indication.

Illustrative Calculation Amount
Subject company's recast SDE $260,000
Assumed comparable sale-price / SDE multiple 2.50×
Indicated asset-sale value, excluding inventory $650,000
Add: Verified inventory, if separately transferred +$75,000
TOTAL ILLUSTRATIVE ASSET CONSIDERATION $725,000

WHY THE TRANSACTION PERIMETER MATTERS

$260,000 × 2.50× = $650,000

$650,000 + $75,000 = $725,000

The additional inventory consideration arises from the assumed asset-sale structure. Furniture, fixtures and equipment are already included in the $650,000 indication and must not be added again without a justified change in the transaction perimeter.

All amounts and the comparable transaction are fictional. The 2.50× multiple is an assumed arithmetic illustration, not a BIZCOMPS observation or independently supported market multiple. The $725,000 is illustrative gross asset consideration, not shareholder equity value, enterprise value on another database's convention, or seller net proceeds. Actual analysis requires comparable transaction screening, appropriate inventory valuation, examination of transferred assets and liabilities, and consideration of negotiated terms.

BVA INDEPENDENT MARKET APPROACH

 Individual Transactions Should Support the Valuation — Not Dictate It. 

BIZCOMPS can provide useful evidence for smaller, owner-operated businesses, particularly when SDE is an appropriate financial measure. However, individual comparable sales must be evaluated for quality, recency, size, industry relevance, geographic representation, and transaction terms.

Market evidence from BIZCOMPS, BizBuySell, IBBA/M&A Source, and other transaction sources may have different definitions of earnings and value. Their observed multiples should not be combined without reconciling those definitions. An independent valuation also considers the income and asset approaches when applicable.

SOURCE METHODOLOGY & ADDITIONAL GUIDANCE

BIZCOMPS methodology:  BIZCOMPS — Transaction Fields and Definitions 

Earnings normalization:  SDE vs. EBITDA — Owner Compensation and Seller Add-Backs 

Financial due diligence:  Quality of Earnings & Financial Due Diligence 

Educational discussion only. The exhibit does not reproduce proprietary BIZCOMPS transaction records or statistics calculated from BVA's licensed data export. Database observations are subject to source reporting limitations, selection criteria, and transaction-specific conventions. Illustrative calculations are not completed appraisals, independent fair market value conclusions, or recommendations to apply any specified multiple to a particular company.

2026 SDE vs. EBITDA Multiples by Transaction Size

IBBA / M&A Source Market Pulse & BVR DealStats

Private-company valuation multiples vary materially by transaction size, business risk, management structure, and the definition of earnings used in the underlying market data.

The International Business Brokers Association (IBBA) and M&A Source Market Pulse Survey provides quarterly transaction-size benchmarks. Business Valuation Resources (BVR) DealStats provides a separate historical transaction reference. These sources should be evaluated independently because their transaction populations and financial conventions differ.

MAIN STREET TRANSACTIONS

Below $2 Million — SDE Basis

Smaller owner-operated transactions commonly use Seller's Discretionary Earnings (SDE), which generally reflects one working owner's compensation and other qualifying adjustments.

LOWER MIDDLE MARKET TRANSACTIONS

$2 Million–$50 Million — EBITDA Basis

Larger transactions commonly use EBITDA after necessary operating and management expenses. EBITDA multiples cannot be applied directly to SDE without reconciling the earnings definition.

BVA MARKET EVIDENCE EXHIBIT 03

IBBA / M&A Source — Valuation Multiples by Deal Size

The following table compares Q2 2025 and Q2 2026 market observations across five transaction-value segments. Each row preserves the earnings basis reported for its respective size category.

Transaction Value Earnings Basis Q2 2025 Q2 2026 Change
Below $500,000 SDE 2.3× 2.0× −0.3×
$500,000–$1 Million SDE 2.8× 2.8× Unchanged
$1 Million–$2 Million SDE 3.0× 3.1× +0.1×
$2 Million–$5 Million EBITDA 3.9× 4.0× +0.1×
$5 Million–$50 Million EBITDA 5.5× 5.8× +0.3×

Source: IBBA / M&A Source, Q2 2026 Market Pulse Highlights, including Q2 2025 comparatives. Changes are measured in multiple turns, not percentage points. These are survey-based transaction-size observations, not industry-specific prescribed valuation multiples.

CRITICAL ANALYTICAL DISTINCTION

A 3.1× SDE Multiple Cannot Be Compared Directly With a 4.0× EBITDA Multiple.

The $1 million–$2 million category reports a 3.1× SDE multiple while the $2 million–$5 million category reports a 4.0× EBITDA multiple. SDE generally includes one working owner's compensation; normalized EBITDA reflects necessary management costs. Differences in transaction size, capital structure, buyer type, and risk also require careful reconciliation.

BVA MARKET EVIDENCE EXHIBIT 04

BVR DealStats — Historical Private-Company Transaction Evidence

The BVR DealStats Value Index, Q3 2026 edition, presents historical and quarterly selling-price-to-EBITDA observations for private-company acquisitions. These benchmarks are derived from a different transaction population and methodology than the IBBA Market Pulse survey.

ALL-TIME SECTOR MEDIAN

4.0×

Historical selling price / EBITDA

Q1 2026 MEDIAN

4.8×

Private-target observation

Q2 2026 MEDIAN

4.1×

Private-target observation

Important reporting distinction: Q3 2026 identifies the edition of the DealStats report. The quarterly multiples displayed above refer to Q1 and Q2 2026, not a Q3 2026 transaction multiple. DealStats transaction-price definitions, including market value of invested capital (MVIC) conventions where applicable, must be reconciled with the financial metrics and included consideration.

COMPARING MARKET DATA SOURCES

Why the IBBA and DealStats Benchmarks Must Remain Separate

IBBA / M&A SOURCE

Quarterly survey of business brokers and M&A advisors covering five transaction-value segments. Smaller segments use SDE; larger segments use EBITDA. Useful for transaction-size and market-condition context.

BVR DEALSTATS

Compiled acquisition-transaction evidence and historical valuation statistics. Useful for screened private-company comparable transactions and EBITDA-based market cross-checks, subject to reporting conventions.

BVA INDEPENDENT MARKET APPROACH

Published Multiples Are Market Evidence — Not a Final Valuation Conclusion

Business Valuation Advisors evaluates published transaction multiples alongside the subject company's normalized earnings, growth, owner dependence, customer concentration, management requirements, working capital, capital expenditures, industry conditions, and financial risk.

BizBuySell, BIZCOMPS, IBBA / M&A Source, and DealStats describe different transaction populations and value conventions. Their observed multiples should not be averaged or treated as interchangeable without appropriate financial and transaction-price reconciliations.

Historical market evidence for educational purposes only. Q2 2026 Market Pulse figures are advisor-survey observations by transaction-value segment. The DealStats Q3 2026 edition presents separate historical and Q1–Q2 2026 acquisition data. Differences in transaction population, observation period, earnings definitions, value conventions, and deal terms limit direct comparability. The reported figures are not prescribed multiples, independent conclusions of fair market value, or substitutes for company-specific financial and comparable transaction analysis.

HVAC Business Valuation: SDE, EBITDA & Equity Value

Three Reconciled Financial Exhibits — From Owner Compensation to Shareholder Value

The following fictional HVAC company demonstrates how Business Valuation Advisors reconciles reported EBITDA, Seller's Discretionary Earnings (SDE), reasonable replacement-management compensation, and a consistent transaction-value basis to develop an illustrative equity-value indication.

The example uses hypothetical company financials and a stipulated valuation multiple. It illustrates professional valuation mechanics; it does not represent an actual client engagement or an independently concluded fair market value.

FICTIONAL COMPANY PROFILE

Owner-Operated HVAC Services Company

The owner manages sales, customer relationships, scheduling, and overall operations. Reported EBITDA already includes $140,000 of owner salary and benefits. Assume that qualified replacement management, including relevant payroll burden, would cost $100,000 annually.

REPORTED EBITDA

$150K

After owner compensation

OWNER COMPENSATION

$140K

Previously expensed

REPLACEMENT COST

$100K

Fully burdened annual cost

BVA FINANCIAL EXHIBIT 01

From Reported EBITDA to Recast SDE and Normalized EBITDA

SDE includes the qualifying economic benefit of one working owner's compensation. Normalized EBITDA reflects sustainable operating earnings after deducting the estimated cost of necessary replacement management.

Earnings Reconciliation Annual Amount
Reported EBITDA, after owner compensation $150,000
Add: Previously expensed owner salary and benefits +$140,000
Recast Seller's Discretionary Earnings $290,000
Less: Fully burdened replacement-management compensation ($100,000)
Normalized EBITDA $190,000

Normalization Check

$140,000 actual owner compensation less $100,000 replacement compensation produces a net $40,000 increase from reported EBITDA to normalized EBITDA. The adjustment is already included and must not be added a second time.

BVA FINANCIAL EXHIBIT 02

SDE Multiple to EBITDA-Equivalent Multiple

Assume a hypothetical 2.80× SDE multiple and a fully reconciled, cash-free/debt-free operating-value convention that includes normal operating assets and working capital. This is a stipulated analytical assumption, not a multiple independently selected from a screened transaction set.

ILLUSTRATIVE OPERATING VALUE

$812,000

$290,000 SDE × assumed 2.80× multiple

IMPLIED EBITDA MULTIPLE

4.27×

$812,000 operating value ÷ $190,000 normalized EBITDA

One Value Indication — Two Mathematical Expressions

Both calculations describe the same $812,000 operating-value indication. The unrounded EBITDA-equivalent multiple is approximately 4.273684×. The displayed 4.27× is rounded. It is not an independent comparable-transaction observation and should not be weighted separately in the final valuation reconciliation.

IMPORTANT MARKET-EVIDENCE DISTINCTION

The assumed 2.80× multiple numerically matches the average cash-flow multiple reported for HVAC businesses in BizBuySell's full-year 2025 sector data. That similarity does not establish comparability. Broker-reported owner cash flow and sale-price conventions must be reconciled to the subject company's recast SDE and assumed cash-free/debt-free operating-value perimeter. This fictional example does not establish that those adjustments have been independently supported.

BVA FINANCIAL EXHIBIT 03

From Operating Enterprise Value to Shareholder Equity

The $812,000 operating-value indication is not automatically shareholder equity value. Assume $175,000 in interest-bearing debt and $45,000 of excess cash beyond supported operating requirements.

Equity-Value Reconciliation Illustrative Amount
Cash-free/debt-free operating enterprise value $812,000
Less: Interest-bearing debt ($175,000)
Add: Excess cash above operating requirements +$45,000
Illustrative 100% Equity Value $682,000

EQUITY VALUE RESULT

$812,000 − $175,000 + $45,000 = $682,000

This is a simplified 100% equity-value indication, not the amount a seller would necessarily receive after transaction expenses, taxes, and other closing adjustments.

Enterprise-Value Perimeter

The illustration assumes the operating value includes a normal level of working capital, including required operating inventory, and all necessary operating assets. No additional nonoperating assets, debt-like obligations, preferred claims, or working-capital shortfalls are assumed. Inventory and equipment must not be added again merely because they appear separately in the balance sheet. Actual transaction terms and comparable-sale conventions may require different treatment.

PROFESSIONAL VALUATION REVIEW

Four Matters That Must Be Independently Supported

01 / OWNER REPLACEMENT

Reasonable Compensation

Validate owner responsibilities, hours, required staffing, market salary, payroll taxes, and benefits.

02 / SUSTAINABLE EARNINGS

Financial Normalization

Substantiate historical EBITDA, owner compensation, nonrecurring expenses, and adjustments without double-counting.

03 / VALUE CONVENTION

Transaction Comparability

Reconcile included inventory, fixed assets, working capital, cash, debt, seller financing, and other deal components.

04 / MULTIPLE SELECTION

Market Evidence & Risk

Assess transaction dates, company size, growth, customer concentration, owner dependence, capital needs, and market comparability.

THE CENTRAL VALUATION LESSON

Reconcile Earnings, Transaction Multiples, and Enterprise Value Before Concluding Equity Value.

The fictional HVAC company has $290,000 of recast SDE and $190,000 of normalized EBITDA. Applying the assumed 2.80× SDE multiple produces one $812,000 operating-value indication. The EBITDA-equivalent multiple is derived from the same indication. After deducting $175,000 of debt and adding $45,000 of excess cash, the simplified equity-value indication is $682,000.

Related technical guidance: SDE vs. EBITDA   |   Quality of Earnings   |   BIZCOMPS Definitions

All financial figures, the company profile, ownership assumptions, and valuation mechanics are fictional. The 2.80× SDE multiple is a hypothetical teaching assumption, not a documented market-selected multiple for the fictional subject company. The implied 4.27× EBITDA-equivalent multiple is not independent market evidence. The $682,000 equity indication is not a completed appraisal, certified valuation conclusion, negotiated purchase price, or independent determination of fair market value. Actual valuation analysis requires subject-specific financial verification, comparable transaction analysis, risk assessment, consideration of appropriate valuation approaches, and the applicable standard and premise of value.

Business Valuation Multiples — Frequently Asked Questions

SDE, EBITDA, Industry Benchmarks, Comparable Transactions & Business Value

Valuation multiples are useful indicators of private-company market pricing, but their interpretation depends on earnings definitions, comparable transactions, and the business being valued. The questions below explain the most important distinctions for owners, buyers, lenders, and financial advisors.

CATEGORY 01 / VALUATION FUNDAMENTALS

Understanding Business Valuation Multiples

1. What is a business valuation multiple?

A business valuation multiple compares a defined measure of business value or transaction price with a financial metric such as Seller's Discretionary Earnings (SDE), normalized EBITDA, or revenue. For example, $500,000 of normalized EBITDA multiplied by an assumed 4.0× enterprise-value multiple produces a $2 million operating-value indication. The value numerator, earnings denominator, and comparable transaction conventions must be consistent.

2. What is the difference between SDE and EBITDA multiples?

SDE generally measures the economic benefit available to one working owner, including qualifying owner compensation. Normalized EBITDA reflects operating earnings after necessary management and operating costs. SDE multiples commonly apply to smaller owner-operated businesses; EBITDA multiples are frequently used for professionally managed companies. The two measures cannot be compared or interchanged without appropriate adjustments. Read BVA's SDE vs. EBITDA Guide.

3. What is a good SDE multiple for a small business?

There is no universally appropriate SDE multiple. Relevant market observations depend on industry, business size, owner dependence, earnings sustainability, growth, transferable assets, and transaction terms. BVA evaluates comparable transactions and the subject company's specific circumstances rather than assuming that a published industry average represents fair market value.

4. What is a good EBITDA multiple for a private company?

An appropriate EBITDA multiple depends on company size, normalized earnings, growth, recurring revenue, customer concentration, management depth, capital intensity, market conditions, and risk. Comparable transactions must use a consistent enterprise-value or other defined pricing basis. A 4.0× multiple, for example, is an arithmetic assumption unless relevant market evidence supports its selection.

5. Can a revenue multiple be used by itself to value a business?

Revenue multiples can provide useful market evidence, particularly in industries where sales scale, growth, or recurring revenue is a significant value driver. However, revenue does not directly measure profitability or free cash flow. Two businesses with identical revenue can have materially different values because of margins, capital requirements, growth, and risk. Revenue-based indications should be evaluated alongside appropriate earnings, cash-flow, or asset-based analysis.

CATEGORY 02 / INDUSTRY DATA & MARKET EVIDENCE

Interpreting Industry Multiples and Comparable Transactions

6. Can I use an industry-average valuation multiple to value my business?

An industry average is a useful starting reference, not a prescribed multiple. For example, the guide's full-year 2025 BizBuySell statistics report a 2.80× average cash-flow multiple for HVAC businesses. That broker-reported measure is not automatically equivalent to normalized EBITDA or a cash-free, debt-free enterprise-value multiple. Company-specific earnings, risk, and transaction terms must be evaluated before applying market evidence.

7. Why can businesses in the same industry have different multiples?

Companies in the same industry may differ in size, customer diversification, management depth, recurring revenue, profitability, growth, and capital requirements. A company with transferable management, reliable earnings, and lower business risk may support stronger market pricing than one dependent on a single owner or customer. Differences in transaction structure can also influence reported multiples.

8. Are asking-price multiples the same as completed-sale multiples?

No. An asking price represents a seller's proposed price and may differ substantially from the final negotiated consideration. Closed-transaction multiples provide evidence of actual reported market activity, subject to data quality and deal-specific conventions. Even completed-sale figures must be checked for included assets, inventory, working capital, seller financing, assumed debt, and other transaction terms.

9. How do BizBuySell, BIZCOMPS, IBBA/M&A Source, and BVR DealStats differ?

BizBuySell provides broad industry sale statistics; BIZCOMPS supports analysis of individual smaller-business transactions and SDE-based pricing; IBBA/M&A Source publishes advisor-survey market evidence by transaction-size segment; and BVR DealStats provides private-company acquisition observations and transaction-multiple data. Their populations, earnings definitions, observation periods, and price conventions differ. BVA reconciles these differences before selecting relevant evidence.

CATEGORY 03 / VALUATION MECHANICS & NEXT STEPS

Applying Multiples to Real Business Valuations

10. Do higher business earnings always mean a higher valuation?

Not necessarily. Value depends on both normalized earnings and the multiple supported by relevant market evidence. Higher earnings can be offset by weaker growth, greater customer concentration, owner dependence, deteriorating margins, or increased risk. Conversely, stronger earnings quality and transferability may support a higher multiple. The relationship should be assessed through the company's actual economics.

11. How do owner compensation and seller add-backs affect valuation multiples?

A working owner's compensation may be added back when calculating SDE, subject to the relevant earnings convention. For normalized EBITDA, necessary replacement-management compensation must be deducted. Discretionary or nonrecurring add-backs require supporting evidence and cannot be double-counted. In BVA's fictional HVAC example, $150,000 reported EBITDA plus $140,000 owner compensation less $100,000 replacement compensation produces $190,000 normalized EBITDA. Explore Quality of Earnings.

12. Does enterprise value equal the value of the owner's equity?

Not automatically. Operating enterprise value generally reflects the value of the business before financing-related equity adjustments, subject to the valuation convention used. Equity value may require deducting interest-bearing debt and debt-like claims and adding excess cash or nonoperating assets. For example, $2 million of operating enterprise value less $600,000 of debt plus $200,000 of excess cash produces an illustrative $1.6 million equity indication, assuming no other adjustments.

13. Is a valuation multiple the reciprocal of a capitalization rate?

A valuation multiple and capitalization rate are mathematical reciprocals only when they are defined using the same sustainable financial measure and value basis. For example, a 25% capitalization rate implies a 4.0× multiple of that same capitalized income measure. A transaction EBITDA multiple should not automatically be treated as the reciprocal of a free-cash-flow capitalization rate without reconciling earnings definitions, growth, reinvestment, and risk.

14. How does BVA select a supportable valuation multiple?

BVA evaluates the company's normalized earnings, industry characteristics, financial size, growth, customer concentration, management requirements, capital investment, and operating risk. We examine relevant transaction evidence, reconcile the definition of value and earnings used by comparables, and consider other appropriate valuation approaches. The engagement scope and deliverable depend on the valuation's intended use. Schedule a Confidential Consultation.

These questions summarize general valuation concepts and potential professional services. Published market multiples do not establish the fair market value of an individual business. Applicable standards, analytical procedures, intended users, fees, and deliverables are determined by the engagement scope.

ABOUT THE AUTHOR

Business Valuation Multiples Guidance From a Practicing Valuation Professional

Joshua Himan, CVA®, is the founder of Business Valuation Advisors, Inc. and has more than 15 years of experience valuing and analyzing privately held businesses. His work includes business valuation, transaction analysis, normalized earnings, market multiples, Quality of Earnings, working capital, debt capacity, and acquisition due diligence.

Joshua holds the CVA®, BCA®, CMEA®, and FMVA® credentials and earned an M.S. in Applied Economics from Johns Hopkins University and an M.S. in Finance from The George Washington University. He has analyzed thousands of privately held businesses across a broad range of industries and transaction circumstances.

Joshua Himan Credentials Client Reviews

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