Most businesses with EBITDA between $500,000 and $1 million will sell for 3x to 6x.
The median EBITDA multiple for businesses in this EBITDA range is:
- Manufacturing: 5.1x
- Wholesale Trade: 4.6x
- Software & IT: 17.6x
- Construction: 3.6x
EBITDA multiples vary significantly across different industries. Software companies often command higher multiples like 4x to 8x EBITDA, while manufacturing firms are usually at the lower end with 0.5x to 3x EBITDA.
For certain niche industries like trucking, the multiples in the $500k-$1m EBITDA range are:
- Auto Transport: 5.4x
- Bulk Transport: 4.9x
- Food & Beverage: 6.6x
- Hazardous Materials: 6.7x
Keep in mind, the general range for $500k-$1m EBITDA businesses is 3x to 6x, but it can be higher for software/tech companies and lower for manufacturers, with significant variation across different industry sectors.