Valuation TrendsQ4 2025 Report Comprehensive analysis of EBITDA exit multiples across 25 service-based industries, based on data from private equity and strategic acquisitions.
14.1x
Financial Consulting
Industry Comparison EBITDA multiple ranges by industry (Min - Max)
0 4 8 12 16 20 24.4 Financial Consulting Legal Consulting Management Consulting IT & Cybersecurity Consulting Engineering Consulting IT Services & MSP Healthcare - Plastic Surgery Healthcare - Medical Devices Marketing Agency - Growth Healthcare - Hospitals Advertising Agency Marketing Agency - Digital Healthcare - Medical Practices Staffing & Recruiting Accounting Firms (CPA)
*Showing top 15 industries by max multiple. View Industries page for full dataset.
Category Performance Average valuation ranges by service category
Technology Services Professional Services Healthcare Services Marketing & Advertising Engineering Services Property & Facility Services Human Capital Services Home Services 0 3 6 9 12 EBITDA Multiple (x) Key Insights 2025 Market Trends
Professional Services Premium Consulting firms (Financial, Legal, IT) continue to command the highest multiples, driven by specialized talent and strong recurring revenue models.
Healthcare Stability Healthcare services remain a safe haven with stable multiples, though elective sectors like plastic surgery show higher volatility.
Tech-Enabled Growth Traditional services incorporating AI or proprietary tech (Legal Tech, MSPs) are seeing valuation premiums of 1.5x-2.0x above standard peers.
Valuation Drivers Key factors influencing multiple positioning (Low vs. High Range)
01 Recurring Revenue Model Contracts or subscriptions comprising >70% of revenue provide cash flow predictability that buyers pay a premium for.
02 Scale >$5M EBITDA Larger platforms attract institutional capital (PE) and command a "size premium" due to reduced risk and operational maturity.
03 Management Depth A complete second layer of management ensures the business operates independently of the owner, essential for transferability.
01 Owner Dependence "Key Man Risk" where client relationships or technical delivery rely heavily on the founder significantly depresses valuation.
02 Customer Concentration Any single client representing >20% of revenue creates existential risk, often leading to strict deal structures or lower multiples.
03 Low Margins / Commoditization Below-average EBITDA margins suggest a lack of competitive moat or pricing power, positioning the business as a commodity.
Tax Impact Analysis Estimated tax liability scenarios for typical exits (Assumes 20% cost basis)
Exit Tax Estimator Estimate your net proceeds after taxes
Cost Basis (Investment) Typically initial investment + capital contributions
State of Residence Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Massachusetts (High Earner) Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming
Filing Status Single Married
QSBS Eligible? No
Taxable Gain (Federal) $4,000,000
Federal Tax $755,493
NIIT (3.8%) $142,500
State Tax (13.3%) $532,000
Total Estimated Tax $1,429,993
Estimated Net Proceeds
$3,570,008
Effective Tax Rate on Gain: 35.7%
*Disclaimer: This calculator provides estimates for educational purposes only. It assumes Long-Term Capital Gains rates. QSBS calculation assumes 100% federal exclusion; state conformity varies significantly (e.g., CA disallows it) and is not calculated here. Consult a tax professional for accurate planning.
Deal Structure Comparison Asset Sale vs. Stock Sale Impact Analysis
State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Massachusetts (High Earner) Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming
Stock Sale Total Tax Liability $1,669,500
Effective Tax Rate 37.1%
Asset Sale Total Tax Liability $1,839,500
Effective Tax Rate 40.9%
Includes higher tax on $1,000,000 recapture
Seller Advantage: Stock Sale Buyers often prefer Asset Sales for step-up in basis.
Difference +$170,000
CALIFORNIA
Managed IT Firm $1.2M EBITDA × 9.0x
Exit Value $10,800,000
Taxable Gain $8,640,000
Federal Tax (23.8%) $2,056,320
State Tax (13.3%) $1,149,120
Total Tax Liability $3,205,440
Net Proceeds
$7,594,560
Effective Tax Rate: 37.1%
NEW YORK
Consulting Firm $0.8M EBITDA × 11.7x
Exit Value $9,360,000
Taxable Gain $7,488,000
Federal Tax (23.8%) $1,782,144
State Tax (10.9%) $816,192
Total Tax Liability $2,598,336
Net Proceeds
$6,761,664
Effective Tax Rate: 34.7%
FLORIDA
Marketing Agency $2.5M EBITDA × 7.7x
Exit Value $19,250,000
Taxable Gain $15,400,000
Federal Tax (23.8%) $3,665,200
State Tax (0.0%) $0
Total Tax Liability $3,665,200
Net Proceeds
$15,584,800
Effective Tax Rate: 23.8%