SDE Multiples by Industry: Small Business Valuation Data

How much is a small business worth? The answer depends largely on its industry. Across more than 9,500 small business transactions reported in 2025, the average Seller's Discretionary Earnings (SDE) multiple was approximately 2.5x — but individual industries ranged from under 1.5x to over 6x.

The tables below show average SDE and revenue multiples for 100+ industries, based on actual closed transactions reported by business brokers to BizBuySell, the largest online marketplace for buying and selling small businesses. BizBuySell tracks approximately 50,000 businesses for sale and recently sold across 70+ U.S. markets.

Use this data as a starting point for understanding what businesses in your industry typically sell for. For a personalized estimate, try our free valuation calculator or request a professional valuation.

In This Article

• How to Read These Tables
• Service Businesses
• Building and Construction
• Food and Restaurants
• Health Care and Fitness
• Retail
• Manufacturing
• Automotive and Boat
• Online and Technology
• Other Industries
• What Drives Your Multiple Higher or Lower
• Frequently Asked Questions

How to Read These Tables

Each table shows the average multiples at which businesses in a given industry actually sold in 2025. The two key columns are:

• SDE Multiple: The average ratio of sale price to Seller's Discretionary Earnings. An SDE multiple of 2.5x means the business sold for 2.5 times its annual SDE. This is the primary valuation metric for small business valuations.
• Revenue Multiple: The average ratio of sale price to annual revenue. Revenue multiples are less reliable than SDE multiples because they don't account for profitability, but they're useful as a quick reference point.

The # Sales column indicates sample size. Industries with fewer than 10 reported transactions should be interpreted with caution.

Service Businesses

Building and Construction

Food and Restaurants

Health Care and Fitness

Retail

Manufacturing

Automotive and Boat

Online and Technology

Other Industries

The following table includes additional industries from financial services, beauty and personal care, education, transportation, pet services, entertainment, and travel.

What Drives Your Multiple Higher or Lower

Industry averages are a starting point, not a destination. Where your business falls within its industry's range depends on factors that these tables cannot capture:

• Owner dependency: Businesses that can operate without the owner's daily involvement command higher multiples. If the business is "you", buyers see more risk.
• Customer concentration: If one customer accounts for more than 15–20% of revenue, expect a discount. Diversified revenue is more defensible and more valuable.
• Growth trajectory: Consistent year-over-year growth in revenue and SDE signals a healthy, expanding business. Declining or flat trends reduce buyer confidence.
• Quality of financial records: Clean, well-documented financials with defensible SDE add-backs make buyers more comfortable — and more willing to pay a premium.
• Recurring revenue: Contracts, subscriptions, and repeat customers reduce the risk of post-sale revenue decline. Businesses with recurring revenue consistently sell at the higher end of their industry's range.
• Transferability: Documented processes, trained employees, transferable leases, and assignable contracts all make it easier for a buyer to step in — and that ease is reflected in the price.

For a deeper look at how these factors affect valuation, read our complete business valuation guide.

Frequently Asked Questions

What is a typical SDE multiple for a small business?

Most small businesses sell for 2 to 4 times their Seller's Discretionary Earnings (SDE). The overall average across all industries in 2025 was approximately 2.5x SDE, based on data from over 9,500 transactions reported by BizBuySell. However, multiples vary significantly by industry, with some sectors averaging below 2x and others exceeding 4x.

What industries have the highest SDE multiples?

Industries with the highest SDE multiples tend to have recurring revenue, high barriers to entry, or significant asset bases. Examples include marinas (6.6x), car washes (4.7x), storage facilities (4.6x), funeral homes (4.4x), dog daycare and boarding (4.4x), medical billing (4.4x), and laundromats (4.1x).

What is the difference between an SDE multiple and a revenue multiple?

An SDE multiple values a business based on its cash flow to the owner (Seller's Discretionary Earnings), while a revenue multiple values it based on total sales. SDE multiples are the standard for Main Street businesses because they account for profitability. Two businesses with the same revenue can have very different SDE multiples if their profit margins differ. Revenue multiples are less reliable but useful as a quick reference.

Where does this data come from?

The data in this article is sourced from the BizBuySell Insight Report, which tracks approximately 50,000 businesses for sale and recently sold across 70+ U.S. markets and 65+ industries. Transactions are reported voluntarily by business brokers nationwide. BizBuySell is the largest online marketplace for buying and selling small businesses.

How accurate are industry-average SDE multiples?

Industry averages provide a useful starting point, but your business's actual multiple will depend on factors the averages cannot capture: owner dependency, customer concentration, growth trajectory, quality of financial records, and the strength of your team and systems. A professional valuation considers these qualitative factors alongside the financial data.