Market Multiples Reference Table
This table provides a high-level overview of current transaction multiples in the British Columbia market. These figures are based on recent sales data and are subject to change based on specific business performance and economic conditions.
| Industry Sector | Average Multiple | Primary Metric |
|---|---|---|
| Gas Stations (with land) | 8.0x - 12.0x | EBITDA |
| Gas Stations (leasehold) | 3.5x - 5.0x | SDE |
| Hotels & Motels | 7.0x - 10.0x | EBITDA |
| Manufacturing | 4.0x - 6.5x | EBITDA |
| HVAC & Plumbing | 3.0x - 4.5x | SDE |
| Professional Practices | 1.5x - 2.5x | Revenue |
| Restaurants | 2.0x - 3.5x | SDE |
Understanding the Multiples
A multiple is a factor used to estimate the value of a business based on its earnings. For example, a business with an EBITDA of $500,000 and a multiple of 4x would have an estimated enterprise value of $2,000,000.
Note: Businesses with strong management teams, recurring revenue, and low customer concentration (e.g., no single client >10% of revenue) typically command higher multiples.