How to Value a Business to Sell: Multiples by Industry

If you're thinking about selling your business, the first question is always the same: what's it worth?

The honest answer is that it depends. But one of the most common ways buyers and brokers arrive at a price is by applying a multiple to your earnings. The multiple varies by industry, and understanding where your sector sits gives you a realistic starting point before you speak to a broker or entertain an offer.

This guide compiles valuation multiples across 18 industries in Australia, drawn from broker transaction data, advisory firms, and publicly reported deals. These are benchmarks, not price tags. Every deal is a negotiation, and what a buyer actually pays depends on the specifics of the business, the deal structure, and the leverage on each side. For more on the factors that shift a valuation up or down, see my guide on what determines the value of a small business.

How multiples work

A valuation multiple takes a measure of your business's earnings and multiplies it by a factor to estimate total value. You can plug your own numbers straight into the business valuation calculator to see the range for your industry.

For most small businesses in Australia (under $5M revenue), the standard measure is Seller's Discretionary Earnings (SDE), which is your net profit plus the owner's salary, benefits, and any personal expenses run through the business. For larger businesses, EBITDA (earnings before interest, tax, depreciation, and amortisation) is more common.

A cleaning business earning $200,000 in SDE with a 2x multiple would be valued at roughly $400,000. A childcare centre earning $500,000 in EBITDA at 4x would be valued at roughly $2 million. Use the SDE Calculator to find your own SDE figure before applying these multiples.

Simple in theory. The challenge is knowing which multiple applies to your industry, and what pushes you to the top or bottom of the range.

Valuation multiples by industry

The table below shows typical multiples for small to mid-sized Australian businesses. These are not fixed rules. Every business is different, and the range within each industry can be wide. But they give you a credible benchmark.

SDE multiples apply to owner-operated businesses (typically under $2-3M revenue) where the owner draws a salary and benefits from the business. Larger operations with salaried management are valued on EBITDA. Waste management and construction are almost always EBITDA-only due to the capital and team size involved. Scroll right on mobile to see all columns.

What moves you up or down the range

Regardless of industry, a few factors consistently add or subtract 0.5x to 1.5x from your multiple:

Who you sell to also shifts the multiple. A competitor or strategic acquirer can often pay more than an individual buyer because they capture cost synergies — I cover this trade-off in selling to an individual buyer vs a competitor.

Essential Services

Commercial Cleaning

SDE: 1.5x - 2.5x | EBITDA: 2.5x - 4x

Commercial cleaning businesses with locked-in contracts, employed (not subcontracted) staff, and digital scheduling systems sit at the top of this range. Residential and ad hoc work trades at the lower end. A business with 80%+ contracted recurring revenue will command a meaningful premium over one relying on casual or one-off jobs. For a deeper look at what drives value in this sector, see my guide to selling a cleaning business in Sydney.

Pest Control

SDE: 2.3x - 3x | EBITDA: 3x - 4x

High margins (often 40%+ to the owner), steady demand, and low capital requirements make pest control attractive to buyers. Route density, recurring service agreements, and compliance licensing all push multiples higher. The sector has seen consolidation from trade buyers building regional platforms.

Fire Safety & Compliance

SDE: 2x - 3.5x | EBITDA: 3x - 5x

Non-discretionary demand is the value driver here: regulations require annual inspections and certifications, so customers can't defer the work. Businesses with government or strata contracts, licensed technicians, and strong compliance records trade at the upper end. Limited public transaction data exists for this niche. See my guide to selling a fire safety compliance business in Sydney.

Waste Management

EBITDA: 3x - 6x

Route density, long-term municipal or commercial contracts, and owned equipment command strong multiples. Regulatory tailwinds around environmental compliance support demand. Smaller operators without contracted revenue trade at the lower end. SDE is rarely used for waste management businesses as they typically require significant capital investment and team size.

Trades & Construction

Plumbing, Electrical, HVAC

SDE: 2x - 3.5x | EBITDA: 2.5x - 5x

Revenue mix drives the multiple. A plumbing business with 60%+ recurring maintenance contracts might achieve 4x+ EBITDA, while one dependent on new construction projects trades closer to 2.5x. Key person risk is the biggest discount factor: if the owner is the lead tradesperson, buyers price in the risk of losing them.

Construction & Building

EBITDA: 2x - 4x

Project-based revenue and lumpy cash flows keep construction multiples modest. Businesses with backlog visibility, repeat clients, and employed project managers do better than those running job to job. SDE is rarely applied as most construction businesses of meaningful scale have salaried management teams.

Education & Childcare

Childcare & Early Learning

SDE: 2x - 3.5x (owner-operated single site) | EBITDA: 3x - 5x (single site) / 5x - 8x+ (multi-site)

Government-subsidised income streams, high barriers to entry through licensing, and essential-service demand drive premium multiples. Single-site operators typically trade around 4x EBITDA. Multi-site groups attract strategic acquirers and can reach 8x or higher. Location, occupancy rates, and lease terms are critical.

Tutoring & Education Franchises

SDE: 2x - 3.5x | EBITDA: 3x - 5x

Membership models, strong student retention, and predictable monthly revenue trade well. Franchise operations benefit from brand recognition but may have transfer restrictions that affect value. Centre models command higher multiples than mobile or in-home tutoring. See my guide on selling an education or tutoring business in Sydney.

Transport & Logistics

Courier & Logistics

SDE: 2x - 3.5x (owner-operated) | EBITDA: 3x - 6x

Fleet management systems, contracted clients, and last-mile delivery capabilities sit at the top of this range. Businesses with large fleets or warehousing may trade on asset-adjusted multiples. Growth from eCommerce fulfilment demand is supporting valuations. See my guide on selling a logistics or courier business in Sydney.

Hospitality & Food

Restaurants

SDE: 1.5x - 3x | EBITDA: 1.5x - 4x

Thin margins, high staff turnover, and lease dependency keep hospitality multiples modest. Premium venues, multi-site groups, or those with freehold property can achieve the upper end.

Cafes & Coffee Shops

SDE: 1.5x - 2.5x | EBITDA: 2x - 3x

Similar dynamics to restaurants but often with better margins. Strong morning trade, loyal regulars, and a favourable lease are the key value drivers. Most cafe sales in Australia are owner-operated, making SDE the more common valuation basis.

Food & Beverage (Manufacturing/Wholesale)

SDE: 2x - 3.5x (small producer) | EBITDA: 3x - 6x

Supermarket supply agreements, diversified product lines, and export capability trade at the higher end. Brand strength and supply chain reliability are significant factors.

Professional & Financial Services

Accounting, Legal, Consulting

SDE: 2x - 4x (sole practitioner) | EBITDA: 3x - 6x

Client retention, fee predictability, and team depth beyond the principal drive multiples. A firm with strong recurring fees and junior staff managing client relationships trades at a premium to one where the owner handles every client.

Financial Services & Planning

SDE: 2.5x - 4.5x (sole adviser) | EBITDA: 4x - 7x

Recurring Funds Under Management (FUM) fees and trail commissions create highly predictable revenue. Compliance requirements and regulatory risk can temper multiples.

Healthcare

Allied Health & Medical Practices

SDE: 2.5x - 5x (solo practitioner) | EBITDA: 4x - 8x

A seller's market in Australia. Strong demand from both private equity and trade buyers has pushed multiples to the higher end. Practices with multiple practitioners, Medicare billing, and low key-person risk command premium valuations.

Technology & Digital

IT Services & SaaS

SDE: 2.5x - 5x (owner-operated MSP) | EBITDA: 4x - 8x (SME) | Revenue: 1x - 6x (SaaS)

Recurring SaaS revenue, low churn, and scalable models can command multiples well above traditional industries. IT services firms are valued on EBITDA, while pure SaaS businesses are often valued on revenue multiples due to growth reinvestment.

eCommerce

SDE: 2x - 3.5x (owner-operated) | Revenue: 1x - 4x | EBITDA: 3x - 6x

Customer acquisition costs, repeat purchase rates, brand strength, and supply chain control all influence positioning. Businesses with proprietary products trade at a premium to dropshippers or resellers.

Retail

Retail (General)

SDE: 1.5x - 2.5x | EBITDA: 2x - 4x

Multiples remain under pressure from eCommerce competition. Businesses with exclusive distribution rights, strong foot traffic locations, or niche product categories do better. Lease terms are a major factor.

Tourism & Leisure

Tourism & Accommodation

SDE: 2x - 3x (small operator) | EBITDA: 3x - 5x (SME) / 7x - 13x (larger operations)

Multiples vary dramatically by scale. A small tour operator might trade at 3x, while a well-known accommodation brand with property assets could reach double digits. Domestic tourism is now above pre-COVID levels.

A note on methodology

These multiples are compiled from publicly reported transaction data, broker benchmarks from Lloyds Business Brokers and Nash Advisory, BizBuySell and Bizval indicator reports, and my own deal analysis across 100+ Australian small business listings. Nash Advisory's published multiples tend to reflect larger transactions (Enterprise Value above $200M), so I've adjusted downward for businesses at SME scale where appropriate.

Multiples are a starting point, not a valuation. A proper valuation considers your specific financials, market position, and deal structure. If you're early in the process, my guide on how to sell a small business in Sydney walks through the full timeline. If you're thinking about selling now, talk to a broker or accountant who specialises in your industry before anchoring to any number.

Sources

Data in this article is drawn from the following sources, accessed June 2026:

• Lloyds Business Brokers: How Valuation Multiples Vary By Industry
• Nash Advisory: Business Valuation Multiples by Industry
• New Chapter Business Sales: Australian Business Valuation Multiples Explained
• Aspira Financial: Small Business Valuations in Australia
• BusinessForSale.com.au: What Is a Cleaning Business Worth in Australia?
• Benchmark Business Sales: How to Value a Childcare Business
• Oasis Partners: Valuation Multiples for Business Sales and Acquisitions
• Creditte: EBITDA Multiples in Australia
• Bizval: Indicator Report
• BizBuySell: Industry Valuation Multiples