Industry Valuation Multiples: A 2025 Snapshot

Industry matters, but it matters less than most owners expect. Within any given vertical, business-specific quality factors drive a 2–3x range around the industry median.

As a directional 2025 baseline for healthy lower-middle-market businesses: HVAC and home services 4–7x, B2B SaaS 5–10x ARR, light manufacturing 4–6x, professional services 3–5x, distribution 4–6x, and healthcare services 5–8x.

These ranges assume clean financials, diversified customer base, and management depth. Concentration, owner dependency, or messy books pull deals to the bottom of the range — or out of it entirely.