The multiple you will achieve — or should pay — is determined by sector, EBITDA quality, lease term, and buyer type. This page gives you the New York-specific data to know the answer before you enter any transaction.
Certified EBITDA recast using live New York closed-transaction data.
Ranges derived from closed seller-side mandates 2023–2025 — what owners actually achieved, not list prices. Multiples are applied to normalised EBITDA after full recast.
| Sector | Indicative Sale Price | Drives top of range | Drives bottom | Dominant buyer |
|---|---|---|---|---|
| F&B — Casual / Café | $250K – $4M | 4+ yrs lease, proven footfall, assignable lease | Under 2 yrs lease, owner-chef brand, cash gap | Strategic / regional |
| F&B — Multi-location Group | $1M – $12M | Scalable brand, documented systems, unit economics | Individual site lease risk, inconsistent EBITDA | Strategic roll-up |
| Wellness · Spa & Fitness | $200K – $2M | Membership base, retention above 80%, transferable licenses | Licenses in owner's name, high staff turnover | PE-backed platform |
| Beauty & Aesthetics | $400K – $5M | Medical director stays, recurring package revenue | Single practitioner who is also the owner | Healthcare group |
| Hospitality · Boutique Hotel | $2M – $40M+ | Freehold or long leasehold, OTA diversification | Short lease, single-OTA concentration, seasonality | Hospitality strategic |
| Healthcare · Clinic | $500K – $15M | Multiple licensed providers, payer diversification | Single-doctor dependency, compliance history | Regional healthcare group |
| Technology & SaaS | $500K – $30M | ARR > $1M, net retention > 100%, team that stays | Project revenue, founder-only knowledge | PE / strategic tech |
| Logistics & Warehousing | $1.5M – $20M | Multi-year contracts, owned fleet, prime location | Month-to-month contracts, single-client concentration | National logistics group |
| Education · Tutoring / School | $400K – $4M | Accreditation in company name, retention data | Accreditation in founder's name, high teacher churn | Regional education group |
All figures are from closed transaction data 2023–2025. Strategic and out-of-state buyers consistently pay 15–30% above local buyer offers for the same business. For acquisition multiples & DD checklists, see the buying guide →
EBITDA multiple is not the only method — and is not always the right one. The most defensible method depends on business type, earnings history, and asset base.
F&B, wellness, hospitality, healthcare, logistics, education — any business with 2+ years of verified operating earnings. Directly reflects what buyers have paid for comparable businesses.
SaaS, subscription, and early-stage tech with ARR but limited EBITDA. Used where EBITDA is suppressed by growth spend but recurring revenue is predictable.
Manufacturing, logistics with owned fleet, hospitality with freehold — where asset value exceeds going-concern earnings value, or in an asset-sale scenario.
Mid-market deals above $10M with a strong, verifiable growth case. Used by corporate and PE buyers where the thesis is future growth. Rarely used below $10M — projection uncertainty dominates.
A $3M-ARR SaaS business growing 30% YoY. At a 15% discount rate, the present value of 5 years of projected cash flows plus a 3% terminal growth rate yields roughly $8–9M.
Why 15%? A ~4% risk-free rate + a 7–8% equity risk premium + a 4–5% SME size/illiquidity premium. Standard for NYC SME DCF.
NYC revenue multiples typically range 2.0×–5.0× ARR by growth and net retention. A $3M-ARR business growing 30% with net retention >100% might command 3–4× ($9–12M). If growth slows to 10% and churn rises, the multiple compresses to 1.5–2.0×.
Works only when ARR is cleanly separable from one-time revenue — acquirers discount heavily if the line is blurred.
The number a buyer pays a multiple on is not net profit. It is normalised EBITDA — profit adjusted to reflect what the business earns for a new owner. Every add-back must be documented and verified against bank statements.
Undocumented personal add-backs are typically discounted 50% by buyers. Add-backs that appear every year will be challenged — they must be genuinely non-recurring. Final multiple determined by lease term, location, and buyer type.
Lease structure is the single most commonly overlooked valuation variable in New York acquisitions. A one-year difference in remaining lease can move a multiple by 0.5×.
The business occupies premises under a commercial lease. Its length, rent, and assignability directly affect enterprise value — the buyer acquires a business whose ability to operate depends on a lease they don't yet hold.
The company owns the land and/or building. Property value is assessed separately and added to the enterprise value — eliminating the largest leasehold discount driver.
| Remaining lease term | Multiple adjustment | Assignability status | Buyer response |
|---|---|---|---|
| 7+ yrs, assignable, at-market rent | Full sector multiple | Assignment clause explicit | No lease discount |
| 5–7 yrs, requires landlord consent | −5% to −10% | Consent required — pre-obtain | CP: assignment consent for completion |
| 3–5 yrs, assignable / consent obtainable | −10% to −20% | Obtain consent before market | Reduced multiple; rent review at renewal |
| 2–3 yrs, renewal uncertain | −20% to −35% | Renewal LOI from landlord needed | Material discount; many buyers pass |
| Under 2 yrs, no renewal | Deal-breaker | No assignability without renewal | Resolve before going to market |
The headline price is not the net proceeds. Transaction structure determines how much of the sale price you keep — one of the most material valuation decisions in a New York business sale.
Buyer acquires the entity — shares change hands, not assets.
Buyer acquires selected assets into a new entity.
| Illustrative — $3M transaction, individual seller | Stock Sale | Asset Sale |
|---|---|---|
| Sale proceeds | $3,000,000 | $3,000,000 |
| Federal + NY capital-gains tax (illustrative) | Long-term cap-gains rate on gain | Ordinary rates on some asset classes |
| Sales tax on tangible assets | None | May apply to equipment/inventory |
| Depreciation recapture | Generally none | Applies to depreciated assets |
| Typical outcome | Higher net to an individual seller | Lower net; buyer gets basis step-up |
Illustrative only. Tax position depends on cost basis, asset composition, entity type, and individual circumstances. This is not tax advice — obtain a written opinion from a CPA before structuring any transaction.
The six most common value destroyers in New York SME transactions — and what to do about each before going to market.
Declared revenue below actual takings. Buyers only pay a multiple on EBITDA they can verify.
30–50% price reductionFix: operate on declared revenue for 12–24 months before market.
Under 3 years remaining, or no assignment clause — the most common reason a sale fails.
15–35% discount or deal-breakerFix: negotiate renewal or assignment clause before engaging a broker.
Revenue or operations depend entirely on the owner.
0.5–1.5× multiple reductionFix: build a management layer; document processes.
One client is 30%+ of revenue — binary risk if it doesn't transfer.
10–25% discountFix: diversify or secure a contractual commitment.
Non-transferable liquor, DOH, or professional licenses found in diligence.
5–15% discount or deal-killerFix: audit all license transferability 6–12 months before sale.
Outstanding assessments, sales-tax arrears, or payroll issues surfaced in diligence.
Direct deduction or collapseFix: obtain a tax clearance / bulk-sale clearance before market.
Valuation is the starting point, not the end. If you're a seller, the next step is a confidential exit process built around the methodology above. If you're acquiring, see the buyer guide.
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