EBITDA Multiples DACH 2026

What EBITDA Multiples Are

An EBITDA multiple — also called an EV/EBITDA multiple or valuation multiple — is a metric used in company valuation that relates the enterprise value of a business to its operating earnings before interest, taxes, depreciation and amortisation (EBITDA). The formula is:

In M&A practice the multiple is applied the other way round: you multiply a company's adjusted EBITDA by a sector-typical multiple to estimate its enterprise value. EBITDA multiples are the most widely used valuation metric for company transactions in the DACH Mittelstand, because they make businesses of different size, legal form and depreciation policy comparable.

EBITDA multiples are determined on a sector-by-sector basis, since different industries carry distinct risk and growth profiles. A software company with predictable recurring revenue justifies a higher multiple than a project-based Trades business with volatile earnings. The table below shows the current valuation ranges across 20 industries.

EBITDA Multiples by Industry & Size Class

The following table shows current EBITDA multiples for 20 industries in the DACH region (Germany, Austria, Switzerland), broken down by three size classes: Micro Cap (< 5M revenue), Small Cap (5–50M revenue), and Mid Cap (> 50M revenue). The multiples reflect typical valuation ranges observed in M&A transactions. For investors focused on building proprietary deal flow, understanding these valuation benchmarks is essential for calibrating entry pricing.

Source: DUB — based on aggregated market estimates from leading M&A advisory firms in the DACH region. As of: Q1/2026. All figures without guarantee.

Why Multiples Diverge in the DACH Reality

The multiples published in PwC studies, FINANCE-Magazin barometers and PitchBook reports are drawn overwhelmingly from large-cap transactions, listed peer groups and Bloomberg databases. For sectors such as mechanical engineering or IT services, the EBITDA multiples reported there often sit between 8x and 12x. In the reality of the DACH Mittelstand — companies with adjusted EBITDA between EUR 0.5m and EUR 5m — those same sectors actually change hands at 4.5x to 6.5x. The gap of 20 to 40 percent is not a statistical quirk; it is structural.

Three discounts explain the spread systematically. The size discount reflects lower diversification and restricted access to institutional buyers, pulling the multiple 1.0x to 2.5x below the large-company benchmark. The illiquidity discount prices in the fact that shares in an owner-managed Mittelstand business cannot be traded daily and that a typical exit takes four to seven years. And concentration risk on the customer, supplier or personnel side (top-3 customers above 30 percent, dependence on the owner-CEO) shaves off a further 0.5x to 1.5x.

On top of this come DACH-specific factors that simply do not appear in Anglo-American comparison studies. The master-craftsman requirement (Meisterzwang) in the regulated trades — plumbing and heating, electrical, metalworking — ties the business to a single licence-holding individual and opens a hard continuity gap the moment a sale is contemplated. The heavy owner dependence of many family businesses means customer relationships, pricing and key decisions all sit with the founder. And the typical balance-sheet retention pattern in the Mittelstand (two decades of retained earnings, non-operating real estate, surplus cash) inflates reported EBITDA until it is properly normalized.

The backdrop is a succession wave. By the end of 2029, roughly 545,000 of 3.87 million Mittelstand companies are seeking a succession solution — about 109,000 per year (KfW Research, 2026). For the narrower 2026 to 2030 window, succession is due at around 186,000 companies in Germany (IfM Bonn, 2025). That supply meets an active buyer market: how private equity deal flow and sector multiples move relative to one another is what determines the realistic range for each industry and size band.

Why Size Class Changes the Multiple

After the sector, company size is the second-biggest driver of where a multiple lands. A so-called size premium means that larger companies are systematically valued higher than smaller ones in the same industry. The table below shows the EBITDA ranges by size class for three example sectors (Q1/2026):

Source: SourcingClub analysis, Q1/2026.

The size premium comes from several factors at once. Larger companies tend to have diversified customer bases, professional management structures and reliable reporting systems, and they are accessible to institutional investors such as Private Equity firms and Family Offices. For smaller companies with EBITDA below EUR 1m, the pool of buyers is often limited to strategic acquirers and high-net-worth individuals, which constrains demand and, in turn, caps the multiple. If you want a first read on where your own business might sit, our free valuation calculator applies these size and sector bands automatically.

Key Factors Influencing Multiples

Multiples vary significantly by sector — for a deeper breakdown, see our sector analysis. PE funds active in this market can find strategies for systematic deal sourcing in our guide to PE deal flow in DACH.

Normalizing EBITDA: The Five Most Common Adjustments in the DACH Mittelstand

No serious buyer pays a multiple on book EBITDA. The basis for every negotiation is normalized EBITDA — also called adjusted EBITDA or “bereinigtes EBITDA.” The following five adjustments appear in 80 to 90 percent of all DACH Mittelstand deals that SourcingClub has pre-qualified during the Deal Origination phase.

1. 1. Market-rate owner-manager compensation

   Many owners either pay themselves above-average salaries (tax optimization through the GmbH) or below-average ones (retaining profits inside the company). In a sale, the salary is restated to a market-rate managing-director compensation, typically EUR 150,000 to 250,000 per year depending on size and sector. For a company with EUR 1.5 million in EBITDA, this single adjustment can move the figure EUR 100,000 to 300,000 up or down and change the purchase price by EUR 0.5 to 2.0 million.

   Real-world example: The owner of a Fire Safety business draws a EUR 320,000 salary. A market benchmark puts the comparable position at EUR 180,000. Add-back to EBITDA: EUR 140,000. At a 6.0x multiple, that is a purchase-price effect of +EUR 840,000.

2. 2. Rent paid to the shareholder for related real estate

   The operating property is frequently owned by a separate real estate GmbH or by the owner privately. The rent actually paid often sits 30 to 60 percent above or below market, depending on the tax structuring. In the valuation model the rent is adjusted to market level, documented via an expert appraisal (Sachverständigengutachten) or independent comparable rents. This correction matters twice over: it affects EBITDA and the later separation of the property company from the operating company.

   Real-world example: A manufacturing business pays EUR 240,000 in rent to the owner family. The market rent per appraisal is EUR 150,000. Add-back: EUR 90,000, a multiple effect of EUR 540,000 at 6.0x.

3. 3. One-off effects and out-of-period items

   This bucket includes pandemic aid (KfW grants, bridging assistance, short-time-work reimbursements), insurance payouts, litigation costs and proceeds, amortization from earlier acquisitions, gains on the sale of non-operating assets, and one-time restructuring costs. Each of these items is stripped out, because it does not reflect the sustainable earning power of the business.

   Real-world example: A trading business reports EBITDA in FY 2023 that is EUR 280,000 higher thanks to pandemic aid. This is deducted to arrive at the run-rate EBITDA.

4. 4. Family members on the payroll without an operating role

   A spouse listed as a mini-job secretary on an EUR 80,000 annual salary, a son holding a Prokura (signing authority) without a defined task, a partner billing as an external consultant on a fixed monthly retainer — these positions are scrutinized closely during due diligence. The buyer assumes these costs disappear after the handover and adds them back in full to the adjusted EBITDA. Clean documentation is essential: who does what, which activity will fall away after the sale, and which one stays.

   Real-world example: Three family members account for EUR 220,000 in payroll costs, of which roughly EUR 140,000 carries no operating role. Add-back EUR 140,000, and at an IT-services multiple of 7.0x that is a value gain of EUR 980,000.

5. 5. Non-operating assets and excess liquidity

   Legacy real estate holdings, a fleet of classic cars, life-insurance policies, the GmbH's securities portfolio, and cash and bank balances beyond the operating working-capital need — none of this belongs to the operating base. In the valuation model these assets are valued separately and added to the Enterprise Value as a cash position. The key point: the minimum cash requirement (normalized working capital) stays in the company, while the surplus accrues to the seller as an additional component of the purchase price.

   Real-world example: A GmbH holds EUR 2.8 million in cash against an operating need of EUR 600,000. The EUR 2.2 million of surplus cash accrues to the seller on top of the equity value.

In practice, these five adjustments add up to an EBITDA correction of 15 to 30 percent at a typical DACH family business. Whoever prepares the normalization process cleanly argues from documented numbers and shifts the negotiation in their favor. Whoever walks in unprepared loses multiples. You can pressure-test your own adjusted figure with our free company valuation calculator.

EBIT vs. EBITDA Multiples: Differences and Application

Multiple-based valuation relies on two earnings metrics that are frequently confused with one another:

In M&A practice, EBITDA has become the more common reference base. The reason: EBITDA removes accounting distortions caused by different depreciation policies and makes companies more comparable. For capital-intensive sectors such as industrial services or mechanical engineering, however, the gap between an EBIT multiple and an EBITDA multiple is substantial and has to be taken into account when interpreting the figures.

An example: a mechanical engineering business with an EBIT of EUR 1.0 million and depreciation of EUR 0.5 million has an EBITDA of EUR 1.5 million. At an enterprise value of EUR 8.0 million, this works out to an EV/EBIT of 8.0x, but an EV/EBITDA of just 5.3x. The same company value, two completely different multiples. The figures shown in our table refer to EV/EBITDA throughout.

Important: before any multiple is applied, EBITDA has to be normalized. Common adjustments include a market-rate owner’s salary, one-off costs (litigation, relocations), expenses not required for the business (a private car, travel costs), as well as out-of-period income and expenses. The normalized figure (Adjusted EBITDA) is the basis of any serious valuation.

Calculating a Multiple-Based Valuation Step by Step

Working out a company's value with an EBITDA multiple comes down to three steps:

1. Determine the adjusted EBITDA.Start from the EBITDA shown in the accounts and strip out one-off costs (litigation, relocations), expenses that are not required to run the business (a private car, an above-market owner's salary) and items belonging to other periods. What remains is the adjusted EBITDA.
2. Apply the sector-specific multiple. Multiply the adjusted EBITDA by the appropriate sector multiple from the table above. Where a company sits within that range depends on its individual value drivers (size, growth, recurring revenue, owner dependency).
3. Derive the equity value.Subtract net financial debt (bank loans, shareholder loans) from the enterprise value and add back any surplus cash. The result is the equity value — the price the seller actually receives.

For a more detailed calculation that factors in every value driver, use our free valuation calculator. Alternatively, SourcingClub provides a professional indicative valuation for Mittelstand companies.

From Enterprise Value to the Price the Seller Actually Receives

The formula Enterprise Value = EBITDA × Multiple only tells half the story. Between the multiple-based starting valuation and the amount the seller actually sees in the bank on closing day sit five structural purchase-price bridges. They decide whether a nominal multiple of 6.0x turns into a real multiple of 5.2x or 6.5x.

In this example the nominal multiple of 7.0x corresponds to a cash-at-closing ratio of 4.9x EBITDA. The remaining 2.1x is deferred or carries risk. Anyone who keeps an eye only on the multiple in negotiations and ignores the purchase-price bridge regularly ends up disappointed. A clean indication accounts for all five components and values the seller’s real, risk-adjusted cash inflow. You can pressure-test the starting point of that bridge — the multiple-based enterprise value — with the free company valuation calculator.

Worked Examples: From EBITDA to Enterprise Value

The three examples below show how EBITDA multiples are applied in practice. All figures are simplified and serve only to illustrate the mechanics. For an individual assessment of your own business, use our free valuation calculator.

The examples make one thing clear: the multiple is not a fixed number but a reflection of the individual quality of the business. Between the bottom and the top of a sector range, valuation differences of 100 percent or more are possible. A well-founded assessment always requires analysing the company-specific value drivers.

For a deeper look at how the multiple method sits alongside DCF and asset-based approaches, see our overview of how we work and the sector-level detail under our focus sectors.

When Other Valuation Methods Complement the Multiple

Multiples are the dominant method in M&A practice across the DACH Mittelstand, but they are not the only valid valuation approach. Depending on company size, sector and the occasion for the valuation, other methods either complement or replace a multiple-based valuation. The overview below summarises when each method is sensibly brought in as an additional reference point.

In practice, serious appraisers combine at least two methods. An IT services provider with EUR 2.0 million in EBITDA is typically valued both via an EBITDA multiple (7.0x = EUR 14.0 million) and via DCF (EUR 13.2 million at a 9% WACC and 2% terminal growth). The EUR 13.2 to 14.0 million range then serves as the negotiation corridor. Applying the methods in isolation risks anchoring price points that the second method does not support. To put your own multiple range in context for a specific transaction, our free company valuation calculator gives you an instant initial benchmark, and a structured Deal Origination process then validates the figures against real market evidence.

Sector-by-Sector Deep Dive

The breakdowns below analyse all 20 sectors from the comparison table in detail. For each industry we set out the key valuation drivers, the typical buyer profiles and the current market dynamics shaping the multiple.

Software & SaaS (median 8.7x): premium valuations with substance

At a median multiple of 8.7x, software and SaaS companies command the highest valuations in the DACH Mittelstand. The reason is the combination of high scalability, low marginal cost and predictable recurring revenue. PE investors willingly pay double-digit multiples for SaaS platforms with net revenue retention above 110 percent and a Rule-of-40 performance. For pure project businesses without a subscription model, multiples sit closer to 6x to 7x. Vertical SaaS solutions with deep industry integration and high switching costs are particularly sought after.

IT services & managed services (median 7.2x): digitalisation as the growth driver

IT service providers and managed service providers benefit from the ongoing pressure to digitalise across the DACH Mittelstand. The median of 7.2x reflects strong demand for cloud migration, cybersecurity and IT outsourcing. Companies with a high share of managed-service contracts (recurring revenue) achieve multiples at the upper end of the range, up to 8.3x. Pure project providers and body-leasing models are valued lower, at 5.2x to 6.7x. The sector is one of the most active Buy & Build fields in the DACH region, with PE platforms systematically consolidating regional IT houses.

Healthcare & medical technology (median 8.0x): regulatory stability as a value driver

Healthcare and medical technology benefit from non-cyclical demand, demographic tailwinds and high regulatory barriers to entry. Specialised laboratories, medical device manufacturers and outpatient care centres regularly achieve multiples at the upper end of the range. Particularly attractive are companies with statutory health-insurance accreditation, CE certifications or established distribution channels into clinic networks. Demographic change in the DACH region reinforces structural demand and underpins multiples over the long term.

Environmental services & waste management (median 6.5x): sustainability lifts valuations

Environmental and waste-management companies are showing one of the strongest positive trends in the DACH region. ESG regulation, the circular economy and rising landfill costs are increasing the strategic relevance of the sector. Companies with their own recovery and recycling facilities, long-term municipal contracts or specialised waste-handling licences achieve multiples at the top of the range, up to 9.0x. The sector is characterised by high regulatory barriers to entry, which gives incumbents a natural moat.

Building Services (HVAC) & Fire Safety (median 6.0x): regulation creates demand

Building Services (HVAC) and Fire Safety benefit from tightened fire-safety regulations, mandatory energy-efficiency refurbishment and the trend towards building automation. The median of 6.0x reflects a solid business model with predictable maintenance revenue. Companies with a high share of recurring maintenance and inspection contracts (above 50 percent) are valued at the upper end of the range. The sector is an active consolidation field, as many owner-managed businesses face succession decisions.

Electrical engineering & automation (median 6.8x): industrial transformation

Electrical engineering and automation companies sit at the heart of industrial transformation. The median of 6.8x mirrors solid demand for automation solutions, switchgear construction and industrial control technology. Companies with their own software components (PLC programming, SCADA systems) achieve higher multiples than pure installation businesses. The energy transition and the expansion of renewables create additional demand impulses, particularly in charging infrastructure and energy storage.

Industrial services (median 5.5x): technical services with substance

Industrial services and technical services cover maintenance, inspection, assembly and technical cleaning for industrial plants. The median of 5.5x results from stable demand combined with high labour intensity and limited scalability. Companies with framework agreements at large customers, certifications (e.g. SCC, ISO 45001) and specialised niches (chemical-park services, offshore maintenance) achieve multiples up to 7.5x. The skilled-labour shortage is a central risk and, at the same time, a barrier to entry for new competitors.

Mechanical & plant engineering (median 5.2x): cyclical with technology upside

German mechanical engineering is the backbone of the DACH Mittelstand. The median of 5.2x reflects the cyclicality of the sector alongside high technological competence. Niche market leaders with their own IP, a high export ratio and after-sales revenue (spare parts, service) achieve up to 8.0x. Pure contract manufacturers and suppliers without their own products sit at the lower end, at 4.0x. The transformation through Industry 4.0, digital twins and AI-supported production is creating differentiation opportunities that are increasingly reflected in higher multiples.

Facility management (median 6.0x): recurring revenue in focus

Facility-management companies are defined by high shares of recurring revenue from framework agreements. The median of 6.0x is attractive to PE investors who value the predictable cash-flow profile. The range (5.2x to 6.7x) depends heavily on the customer mix: companies with public-sector clients and long-term contracts are valued higher than those with short-term commercial-real-estate mandates. Integrated FM providers (technical plus infrastructural) achieve higher multiples than pure cleaning firms.

Logistics & transport (median 4.8x): margin pressure and consolidation

Logistics and transport are under pressure from rising fuel costs, driver shortages and increasing regulation (toll expansions, CO2 pricing). The median has fallen from 5.1x to 4.8x. Contract logistics providers with long-term customer agreements and specialised niche players (pharma logistics, hazardous goods, refrigerated transport) nonetheless achieve up to 7.0x. Asset-light models (forwarding platforms, 4PL) are valued higher than capital-intensive fleet operators because of their scalability.

Consulting & professional services (median 5.0x): people business with valuation hurdles

Consulting firms span a wide valuation range from 3.5x to 8.0x, reflecting the extreme heterogeneity of the sector. Specialised niche consultancies with proprietary methods, their own IP (software tools, frameworks) and low partner turnover achieve the highest multiples. Classic body-leasing models and generalist management consultancies sit at the lower end. The biggest valuation risk factor is dependence on individuals: when the top consultants leave, clients leave with them.

Other services (median 5.0x): a broad spectrum

This catch-all category covers service providers that do not fit clearly into other sectors, including staffing firms, security services, event and marketing agencies, and education providers. The median of 5.0x masks considerable differences: specialised staffing firms with a niche focus and their own database achieve up to 7.0x, while project-dependent agencies sit at 3.5x to 4.5x. The decisive factors are the predictability of revenue and independence from individual people.

Other manufacturing (median 5.0x): niches decide

Manufacturing companies outside the classic categories include plastics processing, metalworking, packaging, food production and specialty chemicals. The median of 5.0x is an average across very different business models. Niche market leaders with proprietary production processes, high switching costs and stable customer relationships achieve 7.0x, while commodity producers with interchangeable products sit at 3.5x to 4.0x. Degree of automation and energy efficiency are becoming increasingly relevant to valuation.

Trades & construction (median 5.0x): skilled-labour shortage as a valuation risk

With a median of 5.0x, the Trades rank among the lowest-valued sectors. Structural challenges such as the skilled-labour shortage, low digitalisation, high owner dependence and project-based revenue weigh on multiples. For Buy & Build platforms, however, this presents opportunities: by consolidating several businesses under professional management, multiple arbitrage of 2x to 3x can be realised. Particularly attractive are businesses subject to master-craftsman requirements in bottleneck trades (plumbing/heating, electrical), which are protected by regulatory barriers to entry.

E-commerce & retail (median 6.2x / 5.0x): a differentiated picture

After the pandemic peaks, e-commerce multiples have normalised. In the small-cap segment the range is 5.4x to 6.9x (median 6.2x), while bricks-and-mortar retail is valued lower at 4.4x to 5.5x (median 5.0x). D2C brands with strong customer loyalty, B2B e-commerce platforms with high switching costs and niche players achieve up to 9.4x in the mid-cap range. In bricks-and-mortar retail, mid-cap multiples sit at 5.1x to 6.5x, higher for franchise-based concepts with a proven scaling model.

Food & beverages (median 5.9x): stable demand with margin pressure

In the small-cap segment, multiples sit at 5.3x to 6.5x (median 5.9x). The sector benefits from stable baseline demand and established supply chains. Rising raw-material and labour costs, however, weigh on margins. Higher valuations of up to 7.9x (mid cap) are achieved by food producers with strong brands, retail private-label contracts and a diversified customer base. Micro-cap businesses sit at the lower end of the range, at 4.4x to 5.7x.

Regional Differences within DACH

Valuation Example

How to Read the Trend Arrows

The trend column in the sector table tracks how the median multiples have moved versus the prior year (Q1 2026). Here is how to read it:

• Rising (↗): The median multiple has climbed by at least 0.3x year over year. Right now this applies to IT Services and Healthcare. The drivers are strong demand from PE investors, digitalisation trends and regulatory tailwinds.
• Stable (→): The multiple sits within ±0.3x of last year’s level. This describes the majority of sectors, including Building Services (HVAC), mechanical engineering and consulting. Stable multiples signal a balanced relationship between supply and demand in the M&A market.
• Falling (↘): The median multiple has dropped by more than 0.3x. Affected sectors include Software/SaaS (AI disruption), logistics, Trades/construction and consumer goods. The reasons range from a cyclical slowdown and margin pressure from rising input costs to structural challenges driven by shifting consumer behaviour.

One important caveat: these trends describe market averages. An exceptionally well-positioned company in a sector with a falling trend can still be valued at the top of the range or above it. Conversely, a rising sector trend offers no protection against a low valuation where there are company-specific weaknesses.

Market Development 2025/2026 and Outlook

Year on year, the DACH M&A market shows clear winners and losers. The table below summarizes the key shifts in median EBITDA multiples by sector:

Source: SourcingClub analysis, Q1 2026 (median multiples per sector, year-on-year comparison).

The move from 2025 to 2026 paints a nuanced picture. Healthcare and IT Services benefit from digitalization and demographic change, while classic SaaS multiples are under pressure from AI disruption — buyers now value traditional software models more cautiously. Cyclical sectors such as Logistics and Consumer Goods feel the drag of a cooling economy. For sellers in declining sectors the message is clear: anyone planning a sale should not wait for a market recovery but instead prepare the process actively and maximize the company’s individual value drivers. A first orientation is available through our free company valuation calculator.

Using Multiples in a Real Transaction

For Business Owners and Sellers

Multiples serve as a first reference point for pricing. Sellers should prepare their adjusted EBITDA carefully and understand how the key value drivers move the multiple. Professional preparation can lift the multiple achieved quite substantially. Three concrete levers stand out. First, reducing owner dependency by building a second management tier. Second, raising the share of recurring revenue through framework and maintenance contracts. Third, increasing transparency with clean, reliable reporting. The starting point for any of this is an honest read of where the business sits today — our free company valuation calculator gives owners an initial multiple-based estimate in a few minutes.

For PE Investors and Corporates

Buyers use multiples as a screening criterion and a negotiating anchor. What matters is adjusting the EBITDA properly and placing the number in its sector context. In Deal Origination strategies, proprietary access typically allows a multiple discount of 1.0x to 2.0x versus competitive auction processes. We support buyers in the systematic identification and pre-qualification of targets that sit below the auction radar — see our approach to proprietary deal flow.

Demand for Mittelstand targets remains high. Private equity and VC investors deployed roughly EUR 15.69 billion into German companies in 2025 — up 4 percent and the highest level since 2021. Of that, around EUR 10.66 billion (68 percent) went into buy-outs. In total, some 897 German companies received private capital. This deployment pressure supports multiples at the upper end of the range, particularly for targets with a high recurring share and low owner dependency.

Source: BVK (2026). Highest level of annual investment since 2021.

Related Pages

• dealorigination.de — Deal origination knowledge for the DACH market
• Building proprietary deal flow — 5 strategies for PE funds in DACH
• PE deal flow in DACH — How PE funds source in Germany, Austria & Switzerland
• Sector analysis — Buy & build sectors in the DACH middle market
• EBITDA-Multiples DACH (German version)
• Company Valuation Austria
• Company Valuation Switzerland