Understanding Business Valuations in 2025

Understanding Business Valuations in 2025


How Business Valuations Are Holding Steady

Business owners selling in 2025 can expect stable valuation benchmarks. Sellers in the Lower Middle Market ($2M-$50M) are securing 100% or more of their asking price, with EBITDA multiples averaging 6.0x.


Key Valuation Metrics

  • EBITDA Multiples: Range from 6.0x to 8.25x for top-performing companies.
  • Main Street Businesses: Achieving 94% of the asking price on average.


Factors Affecting Valuation

  • Financial Health: Strong records yield better valuations.
  • Industry Demand: Certain sectors perform better than others.
  • Competitive Advantage: Unique positioning increases buyer interest.


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