Small business valuation multiples, 2026.

In brief

In Q2 2026, IBBA advisors reported 2.0× SDE for businesses valued under $500,000, 2.8× from $500,000 to $1 million, 3.1× from $1 million to $2 million, 4.0× EBITDA from $2 million to $5 million and 5.8× EBITDA from $5 million to $50 million. This page adds four years of history, how deals were paid for, and country-adjusted multiples for 101 countries outside the U.S..

Version 2026-10 · checked 2026-10-13CSV and JSON downloads

Apply these multiples to your business Price an acquisition

Table 1

Multiples by deal size, 2023 to 2026.

Smaller businesses sell on seller’s discretionary earnings, larger ones on EBITDA. The biggest band moved from 4.8× to 5.8× EBITDA over four years; the smallest stayed at 2.0× to 2.3× SDE.

Reported multiples by enterprise value, second quarter of each year
Enterprise value	Earnings basis	Q2 2023	Q2 2024	Q2 2025	Q2 2026
Under $500K	SDE	2.0×	2.0×	2.3×	2.0×
$500K-$1M	SDE	2.8×	2.8×	2.8×	2.8×
$1M-$2M	SDE	3.0×	2.8×	3.0×	3.1×
$2M-$5M	EBITDA	4.5×	3.5×	3.9×	4.0×
$5M-$50M	EBITDA	4.8×	5.3×	5.5×	5.8×

Source: IBBA and M&A Source, Market Pulse Q2 2026 Highlights. Under $2M priced on seller’s discretionary earnings (SDE); $2M to $50M on EBITDA.

Table 2

How deals were paid for.

How deals were paid for, Q2 2026 (% of purchase price)
Enterprise value	Cash at close	Seller financing	Earnout	Retained equity
Under $500K	88%	11%	1%	0%
$500K-$1M	92%	6%	1%	0%
$1M-$2M	91%	7%	1%	0%
$2M-$5M	84%	9%	1%	0%
$5M-$50M	83%	6%	7%	4%

Source: IBBA and M&A Source, Market Pulse Q2 2026. Cash at close includes senior debt and buyer equity. The $2M to $5M bar sums to 94% as published.

Table 3

Country-adjusted multiples: 101 countries outside the U.S.

We found no public source that reports small-business deal multiples country by country across these markets. These estimates carry the U.S. multiple across borders through the one input that is published for every country, its equity risk premium.

Canada Latin America Europe Middle East Africa Asia Oceania

Country-adjusted multiples, Q2 2026 base · GLZR Group estimates, CC BY 4.0
Country	Moody’s	Country risk premium	Under $500K SDE	$500K-$1M SDE	$1M-$2M SDE	$2M-$5M EBITDA	$5M-$50M EBITDA
North America
United States	Aa1	0.23%	2.0×	2.8×	3.1×	4.0×	5.8×
Canada	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
Latin America
Argentina	Caa1	9.71%	1.68×	2.21×	2.4×	2.9×	3.74×
Bolivia	Ca	15.54%	1.53×	1.96×	2.1×	2.48×	3.07×
Brazil	Ba1	3.24%	1.89×	2.58×	2.84×	3.57×	4.94×
Chile	A2	1.10%	1.97×	2.73×	3.02×	3.87×	5.52×
Colombia	Baa3	2.85%	1.9×	2.61×	2.87×	3.62×	5.04×
Costa Rica	Ba2	3.90%	1.86×	2.54×	2.78×	3.49×	4.78×
Dominican Republic	Ba2	3.90%	1.86×	2.54×	2.78×	3.49×	4.78×
Ecuador	Caa3	12.95%	1.59×	2.06×	2.22×	2.65×	3.34×
El Salvador	B3	8.41%	1.72×	2.28×	2.47×	3.01×	3.93×
Guatemala	Ba1	3.24%	1.89×	2.58×	2.84×	3.57×	4.94×
Honduras	B1	5.83%	1.8×	2.42×	2.64×	3.27×	4.38×
Jamaica	Ba3	4.66%	1.84×	2.49×	2.73×	3.4×	4.62×
Mexico	Baa2	2.46%	1.91×	2.64×	2.9×	3.67×	5.14×
Panama	Baa3	2.85%	1.9×	2.61×	2.87×	3.62×	5.04×
Paraguay	Baa3	2.85%	1.9×	2.61×	2.87×	3.62×	5.04×
Peru	Baa1	2.07%	1.93×	2.66×	2.93×	3.73×	5.24×
Trinidad and Tobago	Ba2	3.90%	1.86×	2.54×	2.78×	3.49×	4.78×
Uruguay	Baa1	2.07%	1.93×	2.66×	2.93×	3.73×	5.24×
Europe
Albania	Ba3	4.66%	1.84×	2.49×	2.73×	3.4×	4.61×
Armenia	Ba3	4.66%	1.84×	2.49×	2.73×	3.4×	4.61×
Austria	Aa1	0.36%	1.99×	2.79×	3.09×	3.98×	5.76×
Azerbaijan	Baa3	2.85%	1.9×	2.61×	2.87×	3.62×	5.03×
Belgium	Aa3	0.78%	1.98×	2.76×	3.05×	3.91×	5.62×
Bosnia and Herzegovina	B3	8.41%	1.72×	2.28×	2.47×	3.01×	3.93×
Bulgaria	Baa1	2.07%	1.93×	2.66×	2.93×	3.73×	5.24×
Croatia	A3	1.55%	1.95×	2.7×	2.98×	3.8×	5.39×
Cyprus	A3	1.55%	1.95×	2.7×	2.98×	3.8×	5.39×
Czech Republic	Aa3	0.78%	1.98×	2.76×	3.05×	3.91×	5.62×
Denmark	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
Estonia	A1	0.91%	1.97×	2.75×	3.04×	3.89×	5.58×
Finland	Aa1	0.36%	1.99×	2.79×	3.09×	3.98×	5.76×
France	Aa3	0.78%	1.98×	2.76×	3.05×	3.91×	5.62×
Georgia	Ba2	3.90%	1.86×	2.54×	2.78×	3.49×	4.78×
Germany	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
Greece	Baa3	2.85%	1.9×	2.61×	2.87×	3.62×	5.03×
Hungary	Baa2	2.46%	1.91×	2.64×	2.9×	3.67×	5.14×
Iceland	A1	0.91%	1.97×	2.75×	3.04×	3.89×	5.58×
Ireland	Aa3	0.78%	1.98×	2.76×	3.05×	3.91×	5.62×
Italy	Baa2	2.46%	1.91×	2.64×	2.9×	3.67×	5.14×
Latvia	A3	1.55%	1.95×	2.7×	2.98×	3.8×	5.39×
Lithuania	A2	1.10%	1.97×	2.73×	3.02×	3.87×	5.52×
Luxembourg	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
Malta	A2	1.10%	1.97×	2.73×	3.02×	3.87×	5.52×
Moldova	B3	8.41%	1.72×	2.28×	2.47×	3.01×	3.93×
Montenegro	B1	5.83%	1.8×	2.42×	2.64×	3.27×	4.38×
Netherlands	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
North Macedonia	Ba3	4.66%	1.84×	2.49×	2.73×	3.4×	4.61×
Norway	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
Poland	A2	1.10%	1.97×	2.73×	3.02×	3.87×	5.52×
Portugal	A3	1.55%	1.95×	2.7×	2.98×	3.8×	5.39×
Romania	Baa3	2.85%	1.9×	2.61×	2.87×	3.62×	5.03×
Serbia	Ba2	3.90%	1.86×	2.54×	2.78×	3.49×	4.78×
Slovakia	A3	1.55%	1.95×	2.7×	2.98×	3.8×	5.39×
Slovenia	A3	1.55%	1.95×	2.7×	2.98×	3.8×	5.39×
Spain	A3	1.55%	1.95×	2.7×	2.98×	3.8×	5.39×
Sweden	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
Switzerland	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
Turkey	Ba3	4.66%	1.84×	2.49×	2.73×	3.4×	4.61×
United Kingdom	Aa3	0.78%	1.98×	2.76×	3.05×	3.91×	5.62×
Middle East
Bahrain	B2	7.12%	1.76×	2.35×	2.55×	3.14×	4.14×
Israel	Baa1	2.07%	1.93×	2.66×	2.93×	3.73×	5.24×
Jordan	Ba3	4.66%	1.84×	2.49×	2.73×	3.4×	4.61×
Kuwait	A1	0.91%	1.97×	2.75×	3.04×	3.89×	5.58×
Oman	Baa3	2.85%	1.9×	2.61×	2.87×	3.62×	5.03×
Qatar	Aa2	0.64%	1.98×	2.77×	3.06×	3.94×	5.67×
Saudi Arabia	Aa3	0.78%	1.98×	2.76×	3.05×	3.91×	5.62×
United Arab Emirates	Aa2	0.64%	1.98×	2.77×	3.06×	3.94×	5.67×
Africa
Botswana	Baa1	2.07%	1.93×	2.66×	2.93×	3.73×	5.24×
Côte d'Ivoire	Ba2	3.90%	1.86×	2.54×	2.78×	3.49×	4.78×
Egypt	Caa1	9.71%	1.68×	2.21×	2.4×	2.9×	3.74×
Kenya	Caa1	9.71%	1.68×	2.21×	2.4×	2.9×	3.74×
Mauritius	Baa3	2.85%	1.9×	2.61×	2.87×	3.62×	5.03×
Namibia	B1	5.83%	1.8×	2.42×	2.64×	3.27×	4.38×
Nigeria	B3	8.41%	1.72×	2.28×	2.47×	3.01×	3.93×
Rwanda	B2	7.12%	1.76×	2.35×	2.55×	3.14×	4.14×
Senegal	Caa1	9.71%	1.68×	2.21×	2.4×	2.9×	3.74×
South Africa	Ba2	3.90%	1.86×	2.54×	2.78×	3.49×	4.78×
Tanzania	B1	5.83%	1.8×	2.42×	2.64×	3.27×	4.38×
Uganda	B3	8.41%	1.72×	2.28×	2.47×	3.01×	3.93×
Zambia	Caa2	11.66%	1.63×	2.12×	2.29×	2.74×	3.49×
Asia
Bangladesh	B2	7.12%	1.76×	2.35×	2.55×	3.14×	4.14×
China	A1	0.91%	1.97×	2.75×	3.04×	3.89×	5.58×
Hong Kong	Aa3	0.78%	1.98×	2.76×	3.05×	3.91×	5.62×
India	Baa3	2.85%	1.9×	2.61×	2.87×	3.62×	5.03×
Indonesia	Baa2	2.46%	1.91×	2.64×	2.9×	3.67×	5.14×
Japan	A1	0.91%	1.97×	2.75×	3.04×	3.89×	5.58×
Korea	Aa2	0.64%	1.98×	2.77×	3.06×	3.94×	5.67×
Malaysia	A3	1.55%	1.95×	2.7×	2.98×	3.8×	5.39×
Mongolia	B1	5.83%	1.8×	2.42×	2.64×	3.27×	4.38×
Pakistan	Caa1	9.71%	1.68×	2.21×	2.4×	2.9×	3.74×
Philippines	Baa2	2.46%	1.91×	2.64×	2.9×	3.67×	5.14×
Singapore	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
Sri Lanka	Ca	15.54%	1.53×	1.96×	2.1×	2.48×	3.07×
Thailand	Baa1	2.07%	1.93×	2.66×	2.93×	3.73×	5.24×
Uzbekistan	Ba3	4.66%	1.84×	2.49×	2.73×	3.4×	4.61×
Vietnam	Ba2	3.90%	1.86×	2.54×	2.78×	3.49×	4.78×
Oceania
Australia	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
Fiji	B1	5.83%	1.8×	2.42×	2.64×	3.27×	4.38×
New Zealand	Aaa	0.00%	2.0×	2.8×	3.1×	4.0×	5.8×
Papua New Guinea	B2	7.12%	1.76×	2.35×	2.55×	3.14×	4.14×

Method: adjusted multiple = 1 / (1 / U.S. multiple + country risk premium in excess of the U.S.), floored at the U.S. figure. Country risk premiums: Damodaran, January 2026 (rating-based). U.S. base: IBBA Market Pulse Q2 2026. Derived by GLZR Group.

Table 4

Financing parameters in force.

Parameter	Value	As of / effective	Source
U.S. bank prime rate	7.00%	2026-09-22	Federal Reserve H.15 Selected Interest Rates, bank prime loan
SBA 7(a) maximum variable rate, loans over $350,000	10.00%	2026-09-22	Prime + 3.00% (SBA)
Canadian prime rate	4.45%	2026-09-16	Bank of Canada, prime rate (series V80691311)
SBA 7(a) maximum loan	$5,000,000	2026-09-23	U.S. Small Business Administration
Minimum equity, initial acquisition	10%	2026-10-01	SBA SOP 50 10 8.1
Minimum debt service coverage	1.15x	2026-10-01	SBA SOP 50 10 8.1
Maximum amortization, change of ownership	10 years	2026-10-01	SBA SOP 50 10 8.1
Quality of Earnings required from	$3,000,000 purchase price	2026-10-01	SBA SOP 50 10 8.1

Table 5

What a business loan costs, by country.

The rate the calculators assume for a local-currency acquisition loan, and where it comes from. Every default can be overridden; borrowing in U.S. dollars instead costs 9.50% but adds currency risk.

Default acquisition-loan rate, local currency
Country	Policy rate	Default loan rate	World Bank avg. lending rate	Source
North America
United States	prime	9.50%	—	Federal Reserve H.15, prime
Canada	prime	6.95%	—	Bank of Canada, prime
Latin America
Argentina	none	46.02%	46.02% (2025)	World Bank, lending interest rate (no policy rate)
Bolivia	none	10.19%	10.19% (2025)	World Bank, lending interest rate (no policy rate)
Brazil	14.00% (2026-08)	19.50%	45.33% (2025)	BIS central bank policy rates
Chile	4.50% (2026-08)	10.00%	4.18% (2018)	BIS central bank policy rates (held at 4.5% on 8 Sep 2026)
Colombia	12.00% (2026-08)	17.50%	14.31% (2025)	BIS central bank policy rates
Costa Rica	3.00% (2026-07, reported)	8.50%	6.88% (2025)	Decision reported by Infobae
Dominican Republic	5.25% (2026-08, reported)	10.75%	15.25% (2024)	Decision reported by Diario Libre and Infobae
Ecuador	none	9.50%	n/a	Dollarized economy: Federal Reserve H.15, prime
El Salvador	none	9.50%	n/a	Dollarized economy: Federal Reserve H.15, prime
Guatemala	3.50% (2026-08-26, reported)	9.00%	12.85% (2025)	Decision reported by Prensa Libre
Honduras	6.00% (2026-09-21, reported)	11.50%	18.58% (2025)	Decision reported by La Tribuna and Infobae
Jamaica	5.50% (2026-08-19)	11.00%	12.14% (2025)	BOJ monetary policy press release, August 2026
Mexico	6.50% (2026-08)	12.00%	8.79% (2025)	BIS central bank policy rates
Panama	none	9.50%	6.91% (2022)	Dollarized economy: Federal Reserve H.15, prime
Paraguay	5.50% (2026-09-22, reported)	11.00%	12.51% (2021)	Decision reported by La Nación (Paraguay)
Peru	4.25% (2026-08)	9.75%	12.60% (2022)	BIS; BCRP series PD04722MM
Trinidad and Tobago	3.50% (2026-06-26)	9.00%	7.50% (2024)	CBTT monetary policy announcement
Uruguay	5.75% (2026-04-21)	11.25%	10.06% (2025)	BCU press release (unchanged in September 2026 reporting)
Europe
Albania	none	6.44%	6.44% (2024)	World Bank, lending interest rate (no policy rate)
Armenia	none	13.78%	13.78% (2025)	World Bank, lending interest rate (no policy rate)
Austria	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Azerbaijan	none	15.34%	15.34% (2025)	World Bank, lending interest rate (no policy rate)
Belgium	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Bosnia and Herzegovina	none	4.10%	4.10% (2025)	World Bank, lending interest rate (no policy rate)
Bulgaria	2.50% (2026-09)	8.00%	4.24% (2025)	BIS central bank policy rates
Croatia	2.50% (2026-09)	8.00%	8.58% (2014)	BIS central bank policy rates
Cyprus	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Czech Republic	3.75% (2026-09)	9.25%	4.67% (2025)	BIS central bank policy rates
Denmark	2.10% (2026-09)	7.60%	n/a	BIS central bank policy rates
Estonia	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Finland	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
France	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Georgia	none	15.91%	15.91% (2025)	World Bank, lending interest rate (no policy rate)
Germany	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Greece	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Hungary	5.50% (2026-09)	11.00%	8.01% (2025)	BIS central bank policy rates
Iceland	8.00% (2026-09)	13.50%	11.01% (2025)	BIS central bank policy rates
Ireland	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Italy	2.50% (2026-09)	8.00%	4.89% (2023)	BIS central bank policy rates
Latvia	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Lithuania	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Luxembourg	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Malta	2.50% (2026-09)	8.00%	4.71% (2013)	BIS central bank policy rates
Moldova	none	8.99%	8.99% (2025)	World Bank, lending interest rate (no policy rate)
Montenegro	2.50% (2026-09)	8.00%	6.32% (2025)	BIS central bank policy rates
Netherlands	2.50% (2026-09)	8.00%	1.50% (2013)	BIS central bank policy rates
North Macedonia	4.25% (2026-09)	9.75%	5.42% (2025)	BIS central bank policy rates
Norway	4.50% (2026-09)	10.00%	5.88% (2025)	BIS central bank policy rates
Poland	3.75% (2026-09)	9.25%	n/a	BIS central bank policy rates
Portugal	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Romania	6.50% (2026-09)	12.00%	8.52% (2025)	BIS central bank policy rates
Serbia	5.75% (2026-09)	11.25%	4.76% (2010)	BIS central bank policy rates
Slovakia	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Slovenia	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Spain	2.50% (2026-09)	8.00%	n/a	BIS central bank policy rates
Sweden	1.75% (2026-09)	7.25%	3.68% (2006)	BIS central bank policy rates
Switzerland	0.00% (2026-09)	5.50%	2.82% (2025)	BIS central bank policy rates
Turkey	37.00% (2026-09)	42.50%	n/a	BIS central bank policy rates
United Kingdom	3.75% (2026-09)	9.25%	0.50% (2014)	BIS central bank policy rates
Middle East
Bahrain	none	5.16%	5.16% (2015)	World Bank, lending interest rate (no policy rate)
Israel	3.25% (2026-09)	8.75%	2.96% (2022)	BIS central bank policy rates
Jordan	none	8.10%	8.10% (2025)	World Bank, lending interest rate (no policy rate)
Kuwait	none	5.03%	5.03% (2025)	World Bank, lending interest rate (no policy rate)
Oman	none	5.50%	5.50% (2021)	World Bank, lending interest rate (no policy rate)
Qatar	none	4.75%	4.75% (2025)	World Bank, lending interest rate (no policy rate)
Saudi Arabia	4.50% (2026-09)	10.00%	n/a	BIS central bank policy rates
United Arab Emirates	none	9.50%	n/a	Pegged to the U.S. dollar: Federal Reserve H.15, prime
Africa
Botswana	none	6.26%	6.26% (2024)	World Bank, lending interest rate (no policy rate)
Côte d'Ivoire	none	5.29%	5.29% (2016)	World Bank, lending interest rate (no policy rate)
Egypt	none	24.29%	24.29% (2024)	World Bank, lending interest rate (no policy rate)
Kenya	none	16.59%	16.59% (2024)	World Bank, lending interest rate (no policy rate)
Mauritius	none	9.00%	9.00% (2025)	World Bank, lending interest rate (no policy rate)
Namibia	none	10.96%	10.96% (2024)	World Bank, lending interest rate (no policy rate)
Nigeria	none	18.45%	18.45% (2025)	World Bank, lending interest rate (no policy rate)
Rwanda	none	16.02%	16.02% (2024)	World Bank, lending interest rate (no policy rate)
Senegal	none	5.29%	5.29% (2016)	World Bank, lending interest rate (no policy rate)
South Africa	7.25% (2026-09)	12.75%	10.69% (2025)	BIS central bank policy rates
Tanzania	none	16.68%	16.68% (2020)	World Bank, lending interest rate (no policy rate)
Uganda	none	19.85%	19.85% (2018)	World Bank, lending interest rate (no policy rate)
Zambia	none	9.48%	9.48% (2020)	World Bank, lending interest rate (no policy rate)
Asia
Bangladesh	none	8.62%	8.62% (2025)	World Bank, lending interest rate (no policy rate)
China	3.00% (2026-09)	8.50%	4.35% (2024)	BIS central bank policy rates
Hong Kong	4.00% (2026-08)	9.50%	5.18% (2025)	BIS central bank policy rates
India	5.25% (2026-06)	10.75%	8.57% (2022)	BIS central bank policy rates
Indonesia	5.75% (2026-09)	11.25%	8.50% (2025)	BIS central bank policy rates
Japan	1.25% (2026-09)	6.75%	0.99% (2017)	BIS central bank policy rates
Korea	2.75% (2026-07)	8.25%	4.19% (2025)	BIS central bank policy rates
Malaysia	2.75% (2026-09)	8.25%	4.82% (2025)	BIS central bank policy rates
Mongolia	none	16.01%	16.01% (2021)	World Bank, lending interest rate (no policy rate)
Pakistan	none	8.67%	8.67% (2021)	World Bank, lending interest rate (no policy rate)
Philippines	5.00% (2026-09)	10.50%	7.10% (2019)	BIS central bank policy rates
Singapore	none	5.25%	5.25% (2021)	World Bank, lending interest rate (no policy rate)
Sri Lanka	none	11.24%	11.24% (2019)	World Bank, lending interest rate (no policy rate)
Thailand	1.00% (2026-09)	6.50%	4.99% (2025)	BIS central bank policy rates
Uzbekistan	none	23.13%	23.13% (2024)	World Bank, lending interest rate (no policy rate)
Vietnam	none	9.32%	9.32% (2023)	World Bank, lending interest rate (no policy rate)
Oceania
Australia	4.35% (2026-08)	9.85%	5.10% (2019)	BIS central bank policy rates
Fiji	none	4.56%	4.56% (2024)	World Bank, lending interest rate (no policy rate)
New Zealand	2.75% (2026-09)	8.25%	0.00% (2025)	BIS central bank policy rates
Papua New Guinea	none	8.29%	8.29% (2024)	World Bank, lending interest rate (no policy rate)

Default business-loan rate: published prime + 2.50 points in the U.S. and Canada; elsewhere the central bank's policy rate + 5.50 points, the same spread the U.S. default carries over the Fed's upper target (prime is target + 3.00). Without a policy rate (Argentina, Bolivia) the World Bank average lending rate is used; dollarized economies (Ecuador, El Salvador, Panama) use the U.S.-dollar rate. Every default can be overridden. Countries added in version 2026-10 (Europe, the Middle East, Africa, Asia and Oceania) follow the same rule: the BIS policy rate + 5.50 points, the euro area using the European Central Bank's; without one, the World Bank average lending rate; the UAE dirham, pegged to the U.S. dollar, uses the U.S.-dollar rate. World Bank series: lending interest rate (FR.INR.LEND), an average across all borrowers, shown for context. “Reported” marks decisions read from named news outlets because the central bank’s page blocks automated reads.

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Use the data.

Use the data. The country-adjusted multiples are GLZR Group’s own estimates and, with the SBA parameters, are licensed CC BY 4.0: reuse them freely and credit GLZR Group. The deal-size multiples and financing mix are figures reported by IBBA and M&A Source, compiled here with attribution; cite them to IBBA and M&A Source Market Pulse.

All inputs (JSON) Multiples and financing (CSV) Country-adjusted multiples (CSV, CC BY 4.0)Book a 15-minute call

Cite as: GLZR Group, “Small business valuation multiples, 2026”, version 2026-10, https://glzrgroup.com/valuation-multiples/

Method

Multiples and financing mix: values printed on the IBBA Market Pulse Q2 2026 highlights charts, read from the published PDF.
Country adjustment: implied capitalization rate (1 / multiple) plus the country’s rating-based risk premium in excess of the U.S. premium, floored at zero, inverted back to a multiple.
SBA parameters: quoted from SOP 50 10 8.1 (effective 1 October 2026) and sba.gov. Rates from the Federal Reserve H.15 release, the Bank of Canada, BIS central bank policy rates and the World Bank; exchange rates from ExchangeRate-API.

Limitations

IBBA figures are advisor-reported survey results; the highlights do not state median or mean, and do not split by sector.
Country-adjusted multiples are derived estimates, not observed transactions. They ignore currency, inflation and local credit.
Cuba and Venezuela are excluded.
These figures are educational. GLZR Group does not provide a formal valuation, financing approval or underwriting.

Questions

Asked about the data.

What is the average multiple for a small business in 2026?

IBBA advisors reported, for Q2 2026: 2.0x SDE under $500,000, 2.8x from $500,000 to $1 million, 3.1x from $1 million to $2 million, 4.0x EBITDA from $2 million to $5 million and 5.8x EBITDA from $5 million to $50 million. The highlights do not state whether these are medians or means.

Are valuation multiples lower in Latin America?

Buyers generally demand a higher return for higher country risk, which lowers the multiple. Applying Damodaran's January 2026 country risk premiums to the U.S. figures lowers a 4.0x EBITDA multiple to 3.67x in Mexico, 3.57x in Brazil, 3.87x in Chile and 2.90x in Argentina. These are GLZR Group's derived estimates, not observed deal data.

What multiple do businesses sell for in Mexico?

GLZR Group's country-adjusted estimate, applying Damodaran's January 2026 country risk premium for Mexico (2.46%) to the Q2 2026 U.S. multiples: 2.64x SDE for businesses valued $500,000 to $1 million, 2.90x SDE from $1 million to $2 million, 3.67x EBITDA from $2 million to $5 million and 5.14x EBITDA from $5 million to $50 million. These are derived estimates, not observed Mexican deal prices.

What multiple do businesses sell for in Brazil?

Applying Brazil's country risk premium of 3.24% (Damodaran, January 2026) to the Q2 2026 U.S. multiples gives 2.58x SDE from $500,000 to $1 million, 2.84x SDE from $1 million to $2 million, 3.57x EBITDA from $2 million to $5 million and 4.94x EBITDA from $5 million to $50 million. These are GLZR Group estimates derived from public data.

Are small business multiples in Canada the same as in the U.S.?

In this dataset, yes. Canada's country risk premium is 0.00% (Aaa), below the U.S. premium of 0.23%, and the method never adjusts upward from IBBA's national survey, so Canada carries the same multiples: 2.0x to 3.1x SDE under $2 million and 4.0x to 5.8x EBITDA from $2 million to $50 million.

What interest rate should I assume for an acquisition loan in Latin America?

A local bank loan is priced off the central bank's policy rate. GLZR Group's calculators assume the policy rate plus 5.5 points, the same spread a U.S. bank loan carries over the Federal Reserve's target: 12.00% in Mexico, 17.50% in Colombia, 19.50% in Brazil, 10.00% in Chile and 9.75% in Peru. Argentina has had no policy rate since mid-2025, so the World Bank's 2025 average lending rate of 46.02% is used. Borrowing in U.S. dollars costs 9.50% but exposes the loan to the local currency.

How were small business acquisitions financed in 2026?

Mostly cash at close. In Q2 2026, cash at close (senior debt and buyer equity) was 83% to 92% of the price by size band, seller financing 6% to 11%, and earnouts 1%, except 7% for deals from $5 million to $50 million, which also carried 4% retained equity.

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