Valuation

EBITDA Multiples By Industry

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  • #127811
    Bethany Monfore
    Participant

    I found this website for a ROM on EBITDA multiples by industry to help with preliminary evalutions of acquisition targets. It’s been a helpful tool, but would welcome any additional resources from more reputable organizations if anyone has any recommendations:
    https://howtoplanandsellabusiness.com/how-to-value-a-business/ebitda-multiples-by-industry/

    Althoug this isn’t from a well-known resource, it has seemed to be fairly accurate when comparing to formal business valuations we’ve had done professional accounting firms.

    #132761
    Rahul Mane
    Participant

    The common thread in valuation is that EBITDA acts as a base metric, while growth rate determines the multiple applied to EBITDA. High-growth industries often have higher multiples, reflecting optimistic expectations for future profitability. In contrast, slow-growth sectors have lower multiples but rely on stable, predictable earnings.Synergies are particularly significant in industries with rapid growth or consolidation trends.In M&A, the value of EBITDA can increase if synergies (cost reductions or revenue enhancements) exist between the buyer and target.

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