EBITDA multiples in the UK mid-market typically range from 3.5x to 9x, depending on sector, business quality, and market conditions. The table below covers the most active sectors for owner-managed business transactions in 2026. All figures are indicative ranges based on observed UK deal activity for businesses with revenues of £2.5m to £25m.
| Sector | EBITDA Multiple Range | Notes |
|---|---|---|
| Manufacturing and Engineering | 4.5x to 7.0x | IP, long-term contracts, and niche positioning support upper end |
| Logistics and Distribution | 4.0x to 6.5x | Contracted revenue and asset-light models command a premium |
| Construction and Built Environment | 3.5x to 5.5x | Framework agreements improve position; project-only sits lower |
| Facilities Management | 4.0x to 6.0x | Multi-year service contracts critical to upper-end pricing |
| Healthcare Services | 5.0x to 8.0x | Strong PE interest; CQC rating and private pay ratio key drivers |
| Pharmaceutical Services | 5.0x to 8.0x | Regulatory approvals and specialist capability drive premium |
| Professional Services | 4.0x to 7.0x | Client retention and recurring fees vs key person risk |
| Wealth Management | 5.0x to 9.0x | AUM-based recurring fees; adviser retention is key risk |
| Recruitment and Staffing | 3.5x to 6.0x | Perm/specialist niche commands more than volume temp |
| Food Production | 3.5x to 6.0x | Own brand vs own label; retailer relationships matter |
| Business Services | 4.0x to 7.0x | Technology-enabled services at the upper end |
| Industrial and Technical Services | 4.0x to 6.5x | Long-term maintenance contracts support premium pricing |
These are enterprise value multiples. The total business value before adjusting for net debt and cash.
What drives multiples within a sector range?
The gap between the bottom and top of each range is not random. Four factors consistently separate a 4x business from a 7x business in the same sector:
Revenue quality. Businesses with contracted, recurring, or highly predictable revenue achieve the upper end. Buyers pay a premium for visibility. They are modelling future cash flows, and certainty reduces risk. A logistics business with 80% of revenue under three-year contracts will sit materially above a comparable business relying on spot freight.
Owner dependency. If the business is operationally and commercially dependent on one person, buyers price that risk down. A management team that can demonstrably run the business without the founder changes the risk profile and supports a higher multiple.
Customer concentration. Any situation where a single customer represents more than 20 to 25% of revenue creates concentration risk that buyers discount. Diversified revenue across 10 to 20 customers with no single dominant relationship is the ideal position.
Growth trajectory. A business growing EBITDA at 10 to 15% per year will attract better multiples than a flat business, even at the same absolute earnings level. Buyers are underwriting future performance, not just buying the past.
Quality of earnings. What it means in practice
When a buyer or their advisers conduct a quality of earnings (QoE) review, they are assessing how reliable and repeatable your EBITDA is. They will look at:
- Whether revenue is contracted, recurring, or transactional
- Whether margins are stable or have been volatile
- Whether any costs have been excluded from EBITDA that should properly be included
- Whether the EBITDA trend is improving, flat, or declining
- Whether there are any one-off items. Positive or negative. That distort the underlying picture
A clean QoE report. One that validates the EBITDA rather than finding reasons to adjust it down. Is one of the most powerful things you can bring to a negotiation.
Frequently asked questions
Are these multiples based on 2026 UK market data? Yes. The ranges reflect observed deal activity in the UK mid-market for owner-managed businesses, as of April 2026. Multiples are sensitive to interest rates and credit conditions; a tightening lending environment tends to compress multiples, particularly for leveraged transactions.
Do sector multiples change over time? Yes. We review these figures every six months against available market data. Sectors experiencing high PE buy-and-build activity (healthcare, professional services, business services) tend to see multiple expansion during active periods. We update this article after each review.
What is a "normalised" EBITDA? Normalised EBITDA is the earnings figure after removing one-off items and adjusting for any non-market costs. Typically owner remuneration set above or below market rate. It represents what a new owner would expect to earn from the business under normal operating conditions.
Should I use revenue multiples instead of EBITDA multiples? EBITDA multiples are the dominant method in UK mid-market M&A. Revenue multiples are occasionally used for early-stage or high-growth businesses with low current margins but strong future potential, or for people-heavy professional services businesses where the EBITDA margin is thin by design.
How accurate are these ranges for my specific business? The ranges give you a benchmark. Your actual achievable multiple depends on factors specific to your business that cannot be captured in a sector table. Management team quality, contract terms, financial history, and the buyer universe available. A qualified corporate finance adviser can give you a more precise indication.