Is anyone else noticing a 4x multiple seems to be the new floor for asking prices?

January 07, 2026

by a searcher in New Jersey, USA

I have been searching for going on 3 years now and in that time I have looked at 100's of CIMs. I can remember when 400k-700k SDE businesses where asking a reasonable multiple of 2.5x to 3.5x (on the high side). Since Q4 last year, I have started noticing most businesses are listed 4x-5x for anything over 400k SDE. I am searching mainly in the Northeast and Mid-Atlantic, so perhaps that has something to do with it? But what are you guys/gals seeing in the wild? Doing the math, 4x is usually too much for the avg self funded searcher to pay using the traditional SBA 80/10/10 funding schema. So does that mean the self funded searcher needs more money to play in the ETA space nowadays or are the brokers swinging for the fences in hopes of finding a buyer that will over extend themselves? Are these higher multiples a reflection of how hot the market is, especially with PE coming downstream and perhaps I need to adjust to the new reality? Let me know your thoughts and insights.

Reply by an intermediary
from George Mason University in 819 Worcester St, Springfield, MA 01151, USA

The question is whether or not they are transacting at those multiples. Asking price is one thing, but what they get can be a different story. I think sellers are focusing on higher multiples because the sheer volume of inbound inquiries they receive independent of a broker. Owners in popular sectors are getting multiple emails a day from interested buyers, buy-side advisors and sell-side advisors. If you've got a lot of people telling you your business is salable and valuable, it's going to resonate and influence their mindset around value.

Reply by an intermediary
from Mount St. Mary College in Orange County, NY, USA

I love the way some of these topics are presented and challenged. I definitely agree that Sellers are expecting higher multiples as the perception/awareness of Search becomes higher. Even a few years ago many owners did not realize their business was sellable. It was either their kids would take over or they would close, specifically for location driven businesses with under $1mm in SDE. But now many expect 4-6 when I walk in for the first convo. I think some of that is the result of ubiquitous podcasts and AI search tools. Multiples are part art and part science. I tried out the tool Valubot, I put in a deal we are working on and it gave 2-3x SDE for a landscaping business, based on the zip code, revenue and SDE. But we are initially valuing it 1.5-2x SDE because its 100% project based, tremendously reliant on the owner and a few other factors. We try to apply deducts or adds to multiples based on specific conditions and on deal research we can source. I have yet to find a tool that does it all. Short answer is yes, I think multiples have risen and that forces more negotiated deals. Without intending to sound defensive I do not think its driven by intermediaries, I think its sellers. Remember a done deal is much more profitable than a high ask.

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