Flooring installer - valuation multiple help

August 05, 2025

by a searcher from University of South Florida in FL, USA

Looking at an off market deal. Company provides residential as well as commercial flooring installation, as well as design assistance. Any help on valuation multiples (SDE / EBITDA) would be helpful. Since the deal is off market, I'm looking to craft and educate the seller from day 1 and want to have a fair value based on size, type of work, other intangible deal drivers to consider. Negotiating in good faith, understanding that the business has been in place for a long time and the Seller is ready to retire. Other observations (positive / watchouts) from operators in this space would be highly appreciated. I'll take all your thoughts, experiences (good and bad). What's on my radar: - Cyclicality, pseudo-discretionary spend, extended cash conversion cycles if cash cycle is not defined up front with customers / GC / etc. - Commoditized, lower barriers to entry than other industries, culture, quality, speed and customer service matter. Much of this is dependent on the team in place. Thanks! K

Reply by a professional-accounting
from Wagner College in Orlando, FL, USA

Would focus on cashflow multiples not revenue. Depending on size could range from 2x SDE and if large enough 3-4 EBITDA. For me the key items that move the multiple up or down range would be owner dependance and doing a deep dive into how much of the commercial or residential business is recurring through long term relationships which would command a premium. Shoot me an email redacted and I'd be happy to discuss further.

Reply by a professional
from Sam Houston State University in Boise, ID, USA

Ran a report on comparative businesses that have sold and the multipliers range from 1.9-3x SDE and then a random one at 4.4x. Multipliers are very subjective and depend on a variety of factors. Maybe an independent opinion of value might be worth it since it is off market? To operate in good faith?

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