What Is Your Business Really Worth? 2026 Valuation Benchmarks

“What's my business worth?” is the question we hear most often from owners in Quincy and the surrounding area — and it's almost always followed by “I have no idea how you'd even figure that out.” Here's the plain-English version of how it works, along with where things stand in 2026.

The starting point: EBITDA multiples

Most lower middle market businesses — generally those valued between $1 million and $50 million — are valued as a multiple of EBITDA (earnings before interest, taxes, depreciation, and amortization). In 2026, that multiple typically falls between 3x and 8x, with the average across all lower middle market deals landing around 6x to 7x. The specific number for your business depends heavily on industry:

• Home services: roughly 4x–6x EBITDA

• Manufacturing: roughly 5x–7x EBITDA

• Professional services: roughly 4x–7x EBITDA

• Healthcare services: roughly 5x–9x EBITDA, among the highest in the lower middle market

Technology and healthcare tend to command the highest premiums right now, while restaurants and businesses tied closely to a single commodity price trade at the low end of their range. Most advisors — about two-thirds, per recent industry surveys — expect these multiples to hold roughly steady through the rest of 2026, which is a meaningfully more stable picture than the wide swings of a few years ago.

What actually moves the number

The industry multiple is a starting point, not the answer. Within any given band, real deals are priced based on factors specific to the business:

• Size — larger, more established businesses generally command a premium within their industry's range

• Customer concentration — a business where no single customer is more than 10–15% of revenue is worth more than one dependent on one or two accounts

• Recurring revenue — contracts and repeat business reduce risk for a buyer and are rewarded accordingly

• Management depth — can the business run for a month without the owner? Buyers pay for a business that doesn't collapse without its founder

• Growth trajectory — a business trending up is worth more than one that's flat or declining, even at the same current EBITDA

This is why two machine shops with identical revenue can sell for very different prices. The multiple tells you the range; the specifics of your business tell you where in that range you land.

Why this matters now, not later

The owners who get the best outcomes are the ones who get a valuation done before they need one — while there's still time to act on what it reveals. If customer concentration is your biggest issue, that can take a year or two to fix. If it's management depth, that might take longer. A valuation isn't just a number; it's a roadmap.

Q3 offers a pre-valuation analysis for business owners in Quincy and the Tri-State region — a straightforward look at where your business stands today and what would move the number. There's no obligation, and no expectation that you're ready to sell. Reach out to start the conversation.

Sources: Windsor Drake, “Lower Middle Market Valuation Research: EBITDA Multiples by Industry” (2026); Capstone Partners, “Middle Market M&A Valuations Index”; CT Acquisitions, “Business Valuation by Industry: 2026 EBITDA Multiples.”