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Lower-middle-market EBITDA multiples by sector

Reference table of lower-middle-market EBITDA multiples for $2M–$250M enterprise-value deals, by sector. Each row cites a named primary source. Updated quarterly.

Last updated: Q2 2026 ·

SectorEV rangeLowMedianHighSource
Software / SaaS (B2B)$10M–$50M EV5.5×8.0×12.0×GF Data Q1 2026 + SaaS Capital
IT Services / Managed Services$5M–$25M EV5.0×7.0×9.0×Service Leadership / Channel M&A trackers
Healthcare Services$5M–$50M EV5.5×7.5×10.0×GF Data Q1 2026
Manufacturing (specialty)$10M–$100M EV5.0×6.5×8.5×GF Data Q1 2026
Distribution / Wholesale$10M–$100M EV4.5×6.0×7.5×GF Data Q1 2026
Business Services (recurring)$5M–$50M EV5.0×7.0×9.0×GF Data Q1 2026
Business Services (project-based)$2M–$25M EV3.5×5.0×6.5×Pepperdine Private Cap Markets 2026
Education / Training$2M–$30M EV4.0×5.5×7.5×XLev operator practice + ANZ ed-services tracker
Construction / Trades$2M–$25M EV3.0×4.5×6.0×Pepperdine Private Cap Markets 2026
Consumer Brands (DTC)$2M–$30M EV1.0×3.0×6.0×BMO / IBA Market Pulse Q1 2026
Marketing / Creative Agencies$1M–$10M EV3.0×4.5×6.5×SI Partners Agency Index 2026
Logistics / 3PL (asset-light)$5M–$50M EV4.5×6.0×8.0×GF Data Q1 2026
Industrial Services$5M–$50M EV4.5×6.5×8.5×GF Data Q1 2026
Lower-middle-market overall$10M–$250M EV5.5×7.4×9.5×GF Data Q1 2026 (median across sectors)

Notes by sector

  • Software / SaaS (B2B)

    Multiples scale with NRR; >120% NRR commonly trades above the high end.

  • IT Services / Managed Services

    Recurring MRR mix and contract length drive most of the spread.

  • Healthcare Services

    Multi-site platforms with proprietary referral funnels price highest.

  • Manufacturing (specialty)

    Customer concentration above 25% typically compresses to the low end.

  • Distribution / Wholesale

    Exclusive line authorisations and territory rights premium-price.

  • Business Services (recurring)

    Recurring contractual revenue mix is the single largest driver.

  • Business Services (project-based)

    Owner-dependency discount most reliably observed in this cohort.

  • Education / Training

    Multi-campus networks with proprietary curriculum trade above the median.

  • Construction / Trades

    Backlog quality and licence portability dominate the spread.

  • Consumer Brands (DTC)

    Multiples on revenue at low end; on EBITDA only with proven repeat-purchase.

  • Marketing / Creative Agencies

    Productised retainers premium over project-based revenue.

  • Logistics / 3PL (asset-light)

    Multi-year shipper contracts and tech-enabled tracking premium-priced.

  • Industrial Services

    Recurring maintenance revenue and tradesperson licensing premium-price.

  • Lower-middle-market overall

    Below $10M EV, multiples typically compress to 4.0–6.0× regardless of sector.

Methodology

Bands are reconciled across three primary sources: GF Data's quarterly Lower-Middle-Market M&A Report (transactions $10M–$250M EV), the Pepperdine Private Capital Markets Report (annual survey of buy-side participants), and the IBA / BMO Market Pulse for sub-$10M deals. Where these conflict, we weight transaction data over survey data and disclose the choice. XLev's operator observations are listed separately and annotated as such.

"Median" is the middle of observed transaction multiples for the EV range, not a guaranteed offer. Buyer type (strategic vs. financial), buyer process (auctioned vs. proprietary), deal structure (cash-at-close vs. earn-out), and operational risk factors (owner dependency, concentration) move a specific business up or down within the band.

How to use this table

  1. Find your sector and EV band.
  2. Read the median as your indicative starting point.
  3. Adjust within the band for owner dependency, customer concentration and recurring revenue mix — see The Math.
  4. Take the Scorecard for an indicative band specific to your business.

Citations are to publicly available reports and practitioner research. Inclusion does not imply endorsement of XLev by any cited organisation. This table is for indicative reference and does not constitute valuation advice.

Licence: CC BY 4.0. You may reuse this table with attribution to "XLev — https://xlev.ai/data/multiples" and the per-row source.