What is a good EBITDA by industry?
As shown, the EBITDA multiples for different industries/business sectors vary widely….EBITDA Multiples By Industry.
| Industry | EBITDA Average Multiple |
|---|---|
| Hotels and casinos | 17.27 |
| Retail, general | 14.70 |
| Retail, food | 8.89 |
| Utilities, excluding water | 12.74 |
How many multiples of EBITDA is a business worth?
The multiples vary by industry and could be in the range of three to six times EBITDA for a small to medium sized business, depending on market conditions. Many other factors can influence which multiple is used, including goodwill, intellectual property and the company’s location.
What is my industry multiplier?
Industry multiplier. Also called an “SDE multiple,” your industry multiplier is a number that you multiply your SDE by to get the fair market value of your business.
How do you find the industry multiplier?
This multiplier, which is based on average sales figures within the industry, is multiplied by either the company’s profits or company’s gross sales. For retail businesses, the companies gross sales and inventory are added together and then multiplied by the industry average figure.
What multiple of EBITDA do restaurants sell for?
The rule of thumb is that a small independent restaurant may be worth 3x – 4x EBITDA while a multi-unit restaurant chain may be worth 6x EBITDA or more. In example, for an average restaurant that does $1M in sales and has a 10% EBITDA margin ($100,000 of EBITDA), the value would range from $300k – $600k+ per location.
What multiple of EBITDA do manufacturing companies sell for?
EBITDA multiples for all manufacturing companies averaged 6.7x, which is above historical averages of 6.2x. On average, larger buyouts continued to receive a premium to EBITDA multiples.
What are business multiples?
A multiple is a way to measure one element of the financial status of a company by comparing two metrics (relevant numbers). Because businesses are different, multiples and ratios are used for comparisons between unlike companies, rather than using definite numbers.