Telecommunication in Canada Multiplier

August 13, 2025

by a searcher from HEC Montréal in Montreal, QC, Canada

I’m currently evaluating a company that operates in several related niches, but I’m having trouble finding an appropriate EBITDA multiple for valuation. Their activities include: Cabling for IT and telecommunication systems Intercom systems for schools, hospitals, and other public facilities Security camera installation and related services Would anyone have insights or benchmarks on EBITDA multiples for businesses in this sector? Thanks in advance for your help!

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Reply by a professional
from Université Laval in Montréal, QC, Canada

Hi Fred-Elie. Great to see some Quebec searchers! The right multiple will depend on many factors specific to the company you’re evaluating, but for reference, we closed a deal in Quebec in this space late last year at around 4.5x EBITDA.

Reply by a searcher
from University of KwaZulu in Vancouver, BC, Canada

At the end of the day, what the business is worth is what people are willing/able to pay for it, so this can be a highly personal/situational assessment. That's why strategic buyers pay more than financial buyers. They are willing to pay higher for strategic value that others don't see/have/cannot extract. In the absence of anything else, I would start with a multiple based on EBITDA. Assume 3.5-4X for a business that is $1-2M EBITDA, tends to scale by 0.5X per $1M of EBITDA as you go up (very loose measure). Additionally, list out the features that would make this more or less attractive from a multiple perspective. E.g., if they have recurring revenue you might say that's worth an additional 0.5 turns of EBITDA, if they have significant customer concentration that might make it less attractive to you so maybe lower it by###-###-#### turns of EBITDA (use ChatGPT to pressure test your assessment here, but be wary of its bias to be overly supportive of anything). Basically a qualitative assessment of what makes this business more/less risky translated into your willingness to pay for it. Overall you will come up with what you think the fair price for the business is. Once you have that, assess whether that's a viable price for you (between equity and debt capital that you can raise), if not, then adjust downwards (see starting point on what you are willing/able to pay for it).

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