The multiple is a factor of what return is expected over the term. One can and will pay more for areas where it is expected and a lower return is expected. You can and should ascertain what if any interest or prior experience in the niche or business. There is a return that is not financial that should be considered.

According to most recent research published by Pepperdine University titled "2021 Private Capital Markets Report", the deals pursued by search funds generally span $0.5M to $5M with purchase multiples ranging from the lowest of 4x for small deals up to 7-8x for the larger deals in the few millions. You should consider your range of EBITDA according to how much leverage relative to purchase price (debt multiple) you can sustain as well as what purchase multiple would be advantageous for your specific purpose (tuck-in, add-in, traditional buyout etc.)