Business Valuation Multiples by Industry in Florida (2026)

If you own a Florida business and you are thinking about selling, the first question is always the same: what is it worth? The honest answer depends on your industry, your size, your margins, and how dependent the business is on you. But it starts with multiples — the shorthand buyers and brokers use to translate your earnings into a price. This guide breaks down the real multiples Florida businesses are trading at in 2026, organized by industry. These are not theoretical ranges pulled from a textbook. They reflect what we see in closed transactions, buyer offers, and the lending parameters SBA lenders are actually approving. ## How Business Valuation Multiples Work A valuation multiple is a ratio applied to your earnings to arrive at an enterprise value. The two most common bases are: - **SDE (Seller Discretionary Earnings)** — net income plus owner compensation, interest, depreciation, amortization, and one-time expenses. Used for owner-operated businesses under roughly $5M in revenue. - **EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)** — the standard for larger businesses with a management team in place. Used when the owner is not the primary operator. The multiple itself is driven by risk. Buyers pay more for businesses with recurring revenue, diversified customers, trained staff, documented processes, and strong growth. They pay less when the owner is the business, when one customer represents 30 percent of revenue, or when the financials are messy. In Florida specifically, a few dynamics push multiples in 2026. Population growth continues to drive demand in home services, healthcare, and construction. No state income tax makes Florida acquisitions more attractive to out-of-state buyers. And private equity roll-up activity in trades like HVAC, plumbing, roofing, and landscaping has compressed the gap between small-company SDE multiples and mid-market EBITDA multiples. ## 2026 Florida Valuation Multiples by Industry The table below shows typical ranges for Florida businesses. The low end reflects owner-dependent operations with limited documentation. The high end reflects businesses with management teams, recurring revenue, and clean financials.

Industry	Basis	Low Multiple	High Multiple	Notes
HVAC	SDE / EBITDA	3.0x	5.5x	PE roll-ups pushing upper range; maintenance contracts add 0.5x–1.0x
Plumbing	SDE / EBITDA	2.5x	4.5x	Licensed trades carry a premium; new construction mix lowers multiple
Roofing	SDE / EBITDA	2.5x	4.0x	Storm-driven revenue is discounted; commercial mix valued higher
Electrical	SDE / EBITDA	2.5x	4.5x	Commercial and industrial contracts lift the range
Landscaping / Lawn Care	SDE	2.0x	3.5x	Recurring maintenance contracts are the value driver
General Construction	EBITDA	3.0x	5.0x	Backlog quality matters more than trailing revenue
Healthcare (non-physician)	EBITDA	4.0x	7.0x	Home health, urgent care, behavioral health; reimbursement mix is key
Dental Practices	SDE	1.5x	3.0x	Solo practitioner at low end; DSO-ready groups at high end
Manufacturing	EBITDA	3.5x	6.0x	Proprietary products and long-term contracts push the top
Technology / SaaS	EBITDA / Revenue	4.0x	8.0x+	Recurring revenue model can justify revenue-based multiples
Professional Services	SDE	2.0x	4.0x	Accounting, consulting, engineering; transferability is the gating factor
Insurance Agencies	Revenue	1.5x	3.0x	Commission-based revenue; book of business retention rate is critical
Restaurants	SDE	1.5x	2.5x	Asset-heavy, lease-dependent; franchises with strong unit economics at high end
Auto Repair / Collision	SDE	2.0x	3.5x	Location and DRP relationships drive value
Pool Service	SDE	2.5x	4.0x	Florida-specific demand; route density and recurring accounts are everything

These ranges assume a business generating at least $300,000 in adjusted earnings. Below that threshold, multiples compress because the buyer pool shrinks to individuals using SBA financing, and lenders cap what they will approve. ## Why Size Matters More Than Industry The single biggest factor most owners underestimate is the size premium. A plumbing company doing $500,000 in SDE might trade at 2.5x. The same company doing $2M in EBITDA might trade at 4.5x. That is not because the bigger company is better run — it is because bigger businesses attract more buyers, qualify for more financing, and carry less key-person risk. In Florida, the breakpoints look roughly like this: - **Under $500K SDE** — 1.5x to 3.0x. Buyer is typically an individual using an SBA 7(a) loan. The lender is the practical ceiling on price. - **$500K to $1.5M SDE/EBITDA** — 2.5x to 4.5x. Mix of funded individuals, small family offices, and entry-level PE groups. This is the most competitive band in Florida right now. - **$1.5M to $5M EBITDA** — 4.0x to 6.0x. Strategic acquirers, private equity platform and add-on deals. Management depth and financial reporting quality become deal-makers. - **Above $5M EBITDA** — 5.0x to 8.0x+. Institutional buyers. At this level, the transaction structure, working capital adjustment, and earnout terms often matter as much as the headline multiple. The practical takeaway: if you can grow your business from $400K to $800K in earnings before selling, you may add more value than any operational improvement could deliver, because you move into a higher multiple band. ## What Moves Your Multiple Up or Down Two businesses in the same industry with the same earnings can trade at wildly different multiples. The spread comes down to transferability and risk. Here is what Florida buyers and their lenders are evaluating: ### Factors That Increase Your Multiple - Recurring or contracted revenue (maintenance agreements, subscriptions, retainers) - Diversified customer base — no single customer over 10 to 15 percent of revenue - Management team that can run the business without the owner - Clean, GAAP-quality financial statements or a recent quality of earnings report - Growth trajectory — consistent year-over-year revenue and margin improvement - Transferable licenses, permits, and certifications - Real estate included or available on a long-term lease ### Factors That Decrease Your Multiple - Owner dependency — if the owner is the rainmaker, the technician, and the manager - Customer concentration — one or two accounts driving most of the revenue - Revenue volatility — big swings year to year, especially storm-driven or project-based - Deferred maintenance on equipment or facilities - Undocumented processes — tribal knowledge in employees' heads - Pending litigation, regulatory issues, or environmental liabilities - Short-term or month-to-month lease in a location-dependent business ## The Florida-Specific Multiplier Effects Florida has dynamics that do not exist in most other states, and they affect how buyers underwrite your business. First, no state income tax. An acquisition in Florida is immediately more accretive to an out-of-state buyer than the same acquisition in California or New York. This expands the buyer pool and supports higher multiples, especially for businesses above $1M EBITDA where corporate and institutional buyers are comparing targets across states. Second, population growth. Florida added more than 360,000 residents in 2025. Every one of those people needs an HVAC system serviced, a roof maintained, healthcare delivered, and a car repaired. Demographic tailwinds give buyers confidence in forward revenue, which supports multiple expansion. Third, PE roll-up activity. Private equity firms have been aggressively consolidating Florida home services businesses since 2021. HVAC, plumbing, roofing, electrical, pest control, and pool service are all targets. When a PE-backed platform is buying add-ons in your market, it creates competitive pressure that lifts multiples for every seller in the sector — even those not selling to PE directly. Fourth, insurance and regulatory dynamics. Florida's property insurance market, licensing requirements, and hurricane exposure create barriers to entry that protect existing businesses. A roofing company with an established insurance carrier network or an HVAC company with a Florida-specific mechanical contractor license has defensible value that out-of-state competitors cannot replicate easily. ## Common Mistakes When Using Multiples Multiples are a starting point, not a conclusion. Here are the errors we see Florida business owners make most often. Mixing up the basis. Applying an EBITDA multiple to SDE (or vice versa) can swing your valuation by 30 to 50 percent. SDE includes owner compensation. EBITDA does not. If your SDE is $800K and you are paying yourself $250K, your EBITDA is $550K. A 3.5x multiple on SDE gives you $2.8M. A 3.5x multiple on EBITDA gives you $1.925M. Same multiple, different basis, nearly $900K difference. Using national averages for a Florida business. National databases include distressed markets, rural businesses, and states with unfavorable tax environments. Florida businesses in growth markets consistently trade above national medians. Ignoring add-backs. The whole point of recasting financials is to show true economic earnings. Personal expenses run through the business, one-time legal fees, above-market rent paid to yourself — these are legitimate add-backs that increase your earnings base and therefore your valuation. But they need to be documented and defensible. Anchor bias from a neighbor's sale. The contractor down the street who claims he sold for 6x may be quoting revenue, not earnings. Or including an earnout. Or real estate. Without knowing the basis, the structure, and the terms, another owner's number is meaningless. ## Frequently Asked Questions ### What multiple should I expect for my Florida business? It depends on your industry, earnings level, and how transferable the business is. Most Florida businesses between $300K and $2M in adjusted earnings trade between 2.5x and 5.0x. The table above gives industry-specific ranges, but your actual multiple will be driven by your customer concentration, owner dependency, financial documentation, and growth trend. ### Is SDE or EBITDA the right basis for my valuation? If you are the primary operator and the business could not run without you, SDE is the standard. If you have a management team and could step away for 90 days without revenue declining, EBITDA is more appropriate. Many businesses in the $1M to $3M revenue range fall in between — your broker should advise on which basis presents your business most accurately to the buyer pool you are targeting. ### Why are HVAC and plumbing multiples higher than restaurants? Recurring revenue. An HVAC company with 2,000 maintenance contracts has predictable cash flow that a buyer can underwrite. A restaurant resets to zero every morning. Add in licensing barriers, lower customer concentration, and active PE buyer demand in trades, and the risk profile is fundamentally different. ### Do Florida businesses sell for more than the national average? Generally, yes — for businesses above $500K in earnings. Florida's population growth, no state income tax, and deep buyer pool (both local and relocating from high-tax states) support premiums of 0.5x to 1.0x above national medians in most service industries. Below $500K in earnings, the premium narrows because SBA lending parameters cap what any buyer can pay regardless of location. ### How do I get an accurate valuation for my specific business? A broker's opinion of value (BOV) from a firm that specializes in your industry and deal size is the most reliable starting point. It accounts for your specific financials, customer mix, market position, and comparable transactions — not just a multiple applied to a number. At CBH Business Group, we provide confidential valuations at no cost to Florida business owners considering a sale. ## Know Your Number Before You Make a Move Whether you are planning to sell this year or just want to understand where you stand, knowing your real valuation — not a guess based on a conversation at a trade show — is the foundation of every good decision. CBH Business Group has closed over $55 million in Florida business transactions and works exclusively with businesses in the $3M to $50M revenue range. If you want a confidential, no-cost valuation of your business based on current market multiples and real comparable data, start with our free valuation calculator at https://cbhbusinessgroup.com/valuation-calculator or book a call directly with Jesse Hastings at https://calendly.com/jesse-cbhadvisory. You can also call us at (407) 908-3845.