I'm looking at a business that does both Sheet Metal Manufacturing and Roofing Contractor work (25% / 75% respectively). It does ~$2.5m EBITDA / $3.25m SDE. I've done a fair amount of research that would suggest 2.75x - 3.5x EBITDA is an appropriate valuation range. Does anybody have insight into how accurate this range is? Relatedly, if I can successfully scale the business to $5m+ EBITDA, how much (if any) multiple arbitrage might exist on the backend? My research seems to indicate that I should not expect much value arbitrage on the back end, even if I successfully 2x business over the course of ownership.
Any thoughts would be welcome! Thanks so much!
Acquisition Multiples for Sheet Metal Roofing businesses?
More on Searchfunder
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.