EBITDA Multiples by Industry: Australia 2026

When Australian business owners ask “what is my business worth?”, the answer almost always comes back to one number: the EBITDA multiple. Understanding current multiples in your sector is the first step to setting realistic expectations, preparing your business for sale, and choosing the right time to go to market.

Lyndon Advisory advises mid-market business owners across Australia on sell-side transactions. This guide draws on our transaction pipeline and current observations of the Australian M&A market in Q1-Q2 2026.

“EBITDA multiples in Australia have compressed from 2021-2022 peak levels, but they remain materially above pre-COVID norms in most sectors,” says Daniel Bae, Founder & CEO of Lyndon Advisory, who has advised on over US$30 billion in transactions globally. “The businesses achieving the highest multiples in 2026 are those that have invested in preparation — clean financials, documented systems, real management depth — and run genuinely competitive processes.”

How EBITDA Multiples Work

An EBITDA multiple expresses how many years of normalised EBITDA a buyer is willing to pay to acquire a business. A business with $3M EBITDA selling at 7x achieves a $21M enterprise value.

The multiple reflects:

• Sector — some sectors command structurally higher multiples (healthcare, software) than others (manufacturing, transport)
• Growth rate — a business growing at 20% EBITDA per year is worth more than one growing at 3%
• Recurring revenue — businesses with recurring revenue (subscriptions, contracts, retainer arrangements) trade at a premium to project-based or transactional revenue models
• Customer concentration — a business where no single customer represents more than 10% of revenue commands a higher multiple than one with 50% revenue concentrated in two customers
• Management depth — a business that can operate without the founder is worth more to a wider buyer universe
• Process quality — a competitive auction consistently achieves 15-25% higher multiples than bilateral negotiations, according to Deloitte’s 2025 analysis of Australian mid-market transactions

Australian EBITDA Multiples by Sector (2026)

The following table represents current Q1-Q2 2026 mid-market Australian transaction multiples for businesses with $2M–$50M EBITDA sold through competitive processes.

Sector	EBITDA Multiple Range	Key Multiple Drivers
SaaS / High-growth software	8–18x	ARR growth, NRR, gross margins
Technology services / MSP	6–12x	Revenue recurrence, customer diversity
Healthcare services (GP, allied health)	6–10x	Medicare revenue, clinical governance
Healthcare (dental, diagnostics)	7–12x	Location portfolio, brand, payer mix
Accounting firms	5–8x	Revenue recurrence, practice size
Professional services (consulting, engineering)	5–9x	Client diversity, government revenue
Financial services (wealth, insurance broking)	6–12x	AUM, FUA, regulatory position
Staffing and recruitment	4–8x	Permanent vs contract mix, sector specialisation
Education (private schools, RTO)	5–10x	CRICOS registration, ASQA compliance
Construction (specialist)	5–9x	Order book, licences, safety record
Manufacturing (precision/specialist)	5–9x	Proprietary product, defensibility
Manufacturing (general)	4–7x	Customer diversity, asset condition
Distribution and logistics	4–7x	Contract tenure, geographic coverage
Retail (profitable, branded)	4–7x	Brand strength, omnichannel capability
Food and beverage (branded)	6–10x	IP ownership, distribution quality
Aged care and disability	5–9x	NDIS/government revenue, quality ratings

Sources: Lyndon Advisory transaction pipeline; PwC Deals Australia 2026; Bain & Company Australia PE Report 2025; Mergermarket Australian deal data. Ranges represent competitive process outcomes for businesses with $2M–$50M EBITDA.

Sector-by-Sector Detail

Technology and SaaS

Technology is Australia’s highest-multiple sector in 2026. SaaS businesses with strong ARR growth, high gross margins (70%+), and good net revenue retention command EBITDA multiples of 8-18x, or 4-10x ARR for businesses valued primarily on a revenue basis.

Managed service providers (MSPs), IT outsourcing businesses, and cloud services companies are valued on EBITDA at 6-12x, reflecting strong revenue recurrence from multi-year service agreements and growing demand from small-to-mid-market Australian businesses. Key value drivers: multi-year contract tenure, customer diversification, and proprietary IP or tooling.

The active buyer universe for Australian technology businesses includes US technology companies, domestic listed mid-caps, and PE funds (Adamantem Capital, Pemba Capital, Equity Venture Partners, Potentia Capital, BGH Capital for larger deals).

Healthcare Services

Australian healthcare M&A is one of the most active segments in the domestic mid-market, driven by PE-backed roll-up strategies in GP services, allied health (physiotherapy, psychology, occupational therapy), dental, and diagnostics.

GP practices and allied health businesses typically achieve 6-10x EBITDA, reflecting defensible Medicare-supported revenue and an active acquirer market. Dental groups sell at 7-12x EBITDA, with premium multiples for established multi-site operations with strong systems and clinical governance. Diagnostics businesses (pathology, radiology) trade at 8-14x given their capital requirements and regulatory protection.

Key healthcare buyers: Australian Healthcare Holdings, Cornerstone Health, Pacific Smiles, National Dental Care (PE-backed), and international healthcare groups entering the Australian market.

Accounting and Professional Services

Australian accounting firms have been among the most actively traded assets in the mid-market, with PE-backed national consolidators acquiring practices across all major cities and regional markets.

EBITDA multiples of 5-8x are typical for accounting practices, with revenue multiples of 0.8-1.2x also commonly used. Practice size matters: firms with $5M+ revenue achieve the higher end of the range; practices under $2M revenue are often valued at lower multiples due to a narrower buyer universe.

Engineering, environmental, and management consulting firms trade at 5-9x EBITDA. Government-linked revenue — defence contracts, NDIS services, infrastructure programs — commands a premium for its visibility and creditworthiness.

Financial Services

Financial services businesses in Australia span a wide valuation range depending on sub-sector:

• Wealth management / IFAs: 8-14x EBITDA or 3-5% of funds under advice (FUA). ASIC-licensed businesses with sticky client relationships and high recurring revenue (ongoing fee arrangements) trade at the higher end.
• Insurance broking: 6-10x EBITDA. Recurring commission income is highly valued; businesses with SME and mid-market client books are preferred by consolidators.
• Corporate finance boutiques: 5-8x EBITDA. Valuations reflect the difficulty of retaining advisory relationships post-acquisition.
• Fintech: Variable — high-growth platforms may be valued on ARR multiples (3-8x); profitable fintech businesses with EBITDA are valued at 10-18x.

Staffing and Recruitment

Staffing businesses trade at 4-8x EBITDA, with material differences between sub-segments. Executive search and permanent placement businesses achieve higher multiples (6-8x) than pure labour hire businesses (4-6x). HRTech-enabled staffing platforms with recurring SaaS revenue command the top of the range.

Key value drivers: specialisation in high-demand sectors (healthcare, technology, mining), client diversity, and the proportion of revenue from preferred supplier arrangements versus spot transactions.

Manufacturing

Australian manufacturing businesses trade at lower EBITDA multiples than services businesses, reflecting capital intensity, working capital requirements, and typically lower revenue recurrence.

Specialist or precision manufacturers — particularly those with proprietary processes, defensible IP, or long-term OEM supply arrangements — achieve 5-9x EBITDA. General fabrication, assembly, and commodity manufacturing businesses are typically valued at 4-7x.

Key value drivers for manufacturing M&A: order book quality and visibility, equipment condition (no capex surprise for the buyer), environmental and workplace compliance, and management depth below the founding owner.

What Moves a Business Above the Midpoint

Within every sector, there is a 3-5x spread between the lowest and highest multiple paid for comparable businesses. The businesses that consistently land at the top of their range share five characteristics:

1. Recurring revenue: Subscription, retainer, and long-term contract revenue is valued at a structural premium. A professional services firm with 60% recurring revenue is worth materially more than one with 60% project revenue, even at the same EBITDA.

2. Low customer concentration: No single customer representing more than 10-15% of revenue is the benchmark. Buyer due diligence probes concentration heavily — a business where one customer represents 30%+ of revenue faces a material multiple discount.

3. Management depth: If the business cannot operate without the founder for 12 months, buyers price in management transition risk. Building a capable senior management team — ideally with a GM or COO who can run day-to-day operations — directly increases the multiple.

4. Clean and audited financials: Three years of audited or reviewed financials with consistent normalised EBITDA documentation reduces buyer diligence friction. Businesses with unclear EBITDA adjustments or owner-related expenses require more buyer scrutiny and typically achieve lower multiples.

5. Competitive sale process: A structured auction with 10-20 qualified buyers competing simultaneously produces higher multiples than a bilateral negotiation with one buyer. The mechanism is simple: competition between buyers forces each one to close the gap between what they would pay in isolation and what they will pay when they know competitors are in the room.

How to Maximise Your Multiple

Start Preparation 12-18 Months Before Market

The most impactful actions happen before you go to market. Addressing value detractors early — customer concentration, management dependency, financial reporting quality — is far more effective than trying to manage them in buyer negotiations.

Key pre-sale actions:

• Commission a sell-side quality of earnings review to establish documented, defensible EBITDA normalisation
• Implement monthly management accounts that track the metrics buyers will ask about
• Reduce key person dependency by building or promoting the management team
• Review and resolve any structural issues (shareholder agreements, related-party transactions, IP ownership)

Run a Competitive Process

A well-structured competitive process — engaging both strategic acquirers and PE funds simultaneously — is the single most powerful lever available to a seller. See our guide on how to choose an M&A advisor for how to evaluate advisory firms on process quality.

Get Sector Positioning Right

Different buyers value different attributes. A PE fund focused on EBITDA growth potential values management depth and revenue recurrence. A strategic acquirer values synergies, customer relationships, and complementary capability. Positioning the business correctly for each buyer type — with tailored messaging and a CIM that speaks to each buyer’s investment thesis — is a core advisor responsibility.

Understanding Your Business’s Current Multiple

The best way to understand what multiple your Australian business would achieve in today’s market is to have an experienced M&A advisor run a preliminary valuation analysis — reviewing your financial profile against current sector transaction data and comparable transactions.

Australian sellers should also consider the tax implications of a sale alongside the headline multiple. The capital gains tax concessions available to small business owners — particularly the 15-year exemption and retirement exemption — can materially change the net proceeds of a transaction.

Book a confidential valuation meeting with Lyndon Advisory. We will provide an honest assessment of your business’s current EBITDA multiple range, what buyers would pay in Q1-Q2 2026, and what you can do before going to market to move from the midpoint to the top of your sector’s range.

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Lyndon Advisory specialises in sell-side M&A advisory for Australian and Asia Pacific business owners. Success fee only — no retainers, no monthly fees. You pay nothing unless a deal completes. Learn how we work.