Jason Tuzinkewich - CBI, M&A Advisor

Sometimes sellers hear that a business in their industry got a certain multiple, so they want the same number. But multiples depend on several factors, especially the size of the business being sold.

For Main Street deals, multiple are typically based on SDE without working capital (approximately 2.5-3.5x SDE in 2016).

In the lower middle market, EBITDA including working capital (4-7x EBITDA in 2016) is the most common multiple type.

As always, there are outliers above and below these trends. Sellers who prepare and plan ahead typically end up on the higher side of multiple trends.

Share on Facebook0Share on Google+0Tweet about this on TwitterShare on LinkedIn0Email this to someone

Jason has 20 years of professional experience in business operations and development. He is well positioned to guide business owners through their M&A options while coordinating all efforts to help ensure a successful outcome for each and every one of his clients.