The State of Acquisition Multiples in 2025
The self-funded search market has matured considerably since 2020. Where searchers once found consistent 3–4x EBITDA deals across most sectors, competitive pressure — driven by a growing population of trained searchers and increasingly sophisticated sellers — has pushed median multiples higher in nearly every category.
Understanding what the market is actually pricing, by sector and deal structure, is essential due diligence before you submit an LOI.
What the Data Shows
SaaS and recurring-revenue technology businesses continue to command the highest multiples in the small business segment — typically 5–7x EBITDA at the sub-$3M level, and occasionally above that in competitive processes. Healthcare services (dental, behavioral health, optometry) trade in the 5–6x range, driven by demographic tailwinds and fragmented ownership.
B2B services businesses — accounting firms, engineering consultancies, managed IT providers — sit in the 4–5x range and represent the most active category for self-funded searchers. These businesses have defensible recurring revenue, low capex requirements, and owner-dependent relationships that can be transitioned with proper structuring.
Home services (HVAC, plumbing, electrical, pest control) have attracted substantial PE roll-up activity, which has pushed multiples up from 3x to 4–4.5x over the past two years. Distribution and manufacturing remain the most attractively priced categories for searchers willing to take on operational complexity.
Where Value Actually Exists
The best risk-adjusted opportunities for self-funded searchers in 2025 are businesses that look operationally messy but are fundamentally sound — owner-operated companies with no CRM, manual billing, and high customer retention. These businesses often trade at a 15–20% discount to comparable "clean" businesses, but the operational lift is entirely within a capable searcher's control.
Geography also creates value. Businesses in secondary and tertiary markets — outside of major coastal metros — trade at meaningful discounts to comparable urban assets, with no difference in underlying quality.
The Multiple Isn't the Deal
A 4x deal with a customer concentration problem, vendor dependency, or regulatory exposure can destroy more value than a 6x deal with clean financials and a diversified customer base. Experienced search fund investors evaluate enterprise value, not just the headline multiple.
At Mayfaire Row, we run full financial modeling — including downside scenario analysis and sensitivity tables — on every deal we evaluate. The multiple matters. The structure matters more.
What Red Flags Look Like
Customer concentration above 25% of revenue in a single client, undocumented add-backs exceeding 15% of stated EBITDA, and seller financing structures that suggest the seller doesn't believe in the business's standalone value are all warning signs. So is a business that has never had a year-over-year revenue decline in a sector that cycles.
We tell searchers what we see. When a deal has a structural problem, we say so before the LOI, not after the close.
Conclusion
Acquisition multiples in 2025 have risen, but strong deals still exist. The searchers who win are the ones who understand sector pricing, identify structural value, and move decisively when a deal makes sense. Speed with discipline — that's the edge.