EBITDA Multiples: What’s Actually Clearing in the Search Market?

February 03, 2026

by a searcher from Florida Institute of Technology in Salt Lake City, UT, USA

Looking for some perspective on current EBITDA or revenue multiples. I recently put forward a 4× EBITDA indication for a solid business that didn’t have an asking price. I felt it was a reasonable starting point and was open to working through structure, but the broker rejected it outright, saying it wasn’t even close to what the seller would consider. They suggested the seller would need to see something in the 5-6× EBITDA range (with some caveats) to engage. I know many deals at these multiples are getting done through SBA-backed financing with seller notes or other structural elements, rather than pure leverage, but I’m curious how other searchers are finding attractive opportunities in this environment. Are PE firms pushing multiples higher, or is there a shift in where and how deals are getting done?

Reply by an intermediary
from Georgia Institute of Technology in Houston, TX, USA

Thank you ^redacted‌. In many cases, if the seller does not have a target price listed, they're expecting an auction approach to drive up the price. They believe there's something special about their company that's worthy of a higher multiple. Stay true to your investment profile and don't over-extend leverage with limited cushion. I'll mimic what ^redacted‌ said, to focus on deals with some hair on it to give you better negotiating ability and stronger upside. You're more likely to succeed with a 4x. I always run multiple valuation models for my clients before going to market. DealStats resource here is great. Check multiples of EBITDA (confirm if adjusted version of financials were used and adjustments were valid), multiple of revenue, income approach, asset approach, etc. Under valuing an offer is most times insulting to the seller. Gain their trust and they'll work with you on structure to make the deal work at a higher multiple.

Reply by an intermediary
from Cornell University in Philadelphia, PA, USA

The most realistic path these days for a 4x EBITDA transaction is to focus on off-market or more complex situations(eg. owner dependence, succession gaps, etc) where certainty, speed, and deal structure matter more than headline multiple. 5-6x EBITDA on the rise because sellers/brokers are usually specifically targeting SBA-backed buyers who can support higher headline multiples through structure rather than leverage alone.

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