
5 EBITDA Benchmarks for SMB Valuation
EBITDA is one of the most important metrics for valuing small and medium-sized businesses because it focuses on core operating profitability, removing financing, taxes, and non-cash expenses. Multiples for SMBs typically range from 3x to 6x adjusted EBITDA, with the exact figure influenced by factors like margins, growth, customer concentration, revenue stability, and cash flow conversion. Understanding these benchmarks helps buyers and sellers align on value, assess risk, and negotiate deals based on both profitability and the business’s ability to generate sustainable cash flow.