Industry Multiples Cheat Sheet: EBITDA Multiples for Buying a Business in Australia
When buying a business in Australia, the EBITDA multiple is the number that converts annual profit into a purchase price. A business making $200,000 in normalised EBITDA at a 2.5x multiple is worth $500,000. At 3.5x, it's worth $700,000. The difference — $200,000 — is real money, and it turns entirely on factors most buyers don't know to look for before they make an offer.
EBITDA multiples for small Australian businesses vary significantly by industry. Trades businesses generally trade between 1.5x and 4x normalised EBITDA, with the exact multiple depending on revenue quality, owner dependency, and how well the business functions without its founder standing in the middle of everything.
This resource gives you the full picture: industry-specific multiple ranges for the most common Australian acquisition targets, plus the specific factors that move any business toward the top or bottom of its range.
This is covered in detail in Module 4 of the Playbook — but this cheat sheet is yours to keep and use in any deal.
Why EBITDA multiples vary so much between industries
Two businesses can have identical profit figures and trade at dramatically different prices. A pest control business making $200,000 EBITDA might sell for $600,000. A painting business with the same profit might sell for $350,000. That's not arbitrary — the market is pricing recurring revenue, barriers to entry, and how replaceable the owner is.
Industries with high recurring revenue (pest control treatment programs, HVAC service contracts, scheduled cleaning programs) attract higher multiples because the earnings are more durable. Industries where revenue is project-based and starts from zero each month (residential painting, concreting, fencing) attract lower multiples, because the buyer is inheriting a sales machine that needs to keep running — not a customer base that keeps paying.
I looked at a roofing business last year that the seller had valued at 2.5x his stated profit. His stated profit was correct. His stated multiple wasn't — every job was a one-off residential referral, the owner was quoting every job personally, and two of his four staff had already indicated they might leave when he did. The right number was closer to 1.5x once you factored in the transition risk. (He didn't agree with me. I walked away. The business is still listed.)
Before you can apply a multiple, you need a reliable EBITDA figure. If you haven't already, grab the EBITDA Normalisation Checklist — it walks through every common add-back and which ones hold up under scrutiny from a bank or sophisticated buyer.
The factors that push any business toward the top of its range
Regardless of industry, these are the signals that justify paying at the upper end:
Recurring revenue — maintenance contracts, service agreements, scheduled programs that bring customers back without fresh sales effort. This is the single biggest multiple driver.
Owner not needed daily — the business runs without the founder making daily calls or decisions. Crew leaders know what to do; quoting and job management happen in systems, not heads.
Documented systems — job management software (Fergus, ServiceM8, Simpro), documented SOPs, written quoting methodology. These reduce transition risk and signal a manageable business.
Diversified revenue — no single customer above 15% of revenue. If you want to understand customer concentration risk, that article covers it in detail.
Clean, verified financials — BAS lodgements reconcile with the P&L; bank statements back up the stated profit; the owner can explain every significant number. See how to check the financials for a step-by-step verification process.
For detailed multiple ranges across each trade industry — and the specific scoring rubric for placing a business within its range — the full cheat sheet is below.
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