UK SME deal multiples by sector (2026)
Where each UK SME sector trades in 2026, what's moving the multiple this year, and which buyer types are most active. Twelve sectors, midpoint and range, plus Chris's editorial on the specific levers that shift you inside the band.
By Chris at Sell LtdLast updated - 12 UK SME sectors mapped with 2026 deal multiples.
- Buyer-type breakdown by sector — trade, PE, search-fund activity levels.
- Direction of travel: stable-to-rising in healthcare, MSPs, SaaS; compressed in hospitality and retail.
- Sourced from Companies House 2023–25 + published UK SME deals + Sell Ltd confidential deal book.
B2B SaaS
Software / cloud subscription businesses
Rule of thumb. 2× – 6× ARR at £250k+ ARR; MRR churn discount below 90% net retention
What moves the multiple. Highest multiples when net revenue retention > 100% and gross margin > 75%
Professional services
Accountancy, consultancy, legal, marketing agencies
Rule of thumb. 0.8× – 1.3× gross recurring fees for accountancy; 2× – 3× EBITDA otherwise
What moves the multiple. Key-person risk drags multiple; contracted revenue lifts it
E-commerce
DTC, Amazon FBA, Shopify, marketplace resellers
Rule of thumb. 2× – 4× SDE for owner-operated Amazon FBA; premium for branded IP
What moves the multiple. Own brand + repeat customer base lifts multiple; single-platform risk drags
Manufacturing
UK manufacturers, engineering, fabrication
Rule of thumb. Add net tangible assets to 4× – 6× EBITDA on capital-heavy makers
What moves the multiple. Property + plant carry separate value; verify freehold treatment
Healthcare & care
Dental, care homes, veterinary, allied health
Rule of thumb. £/bed for care; 1× – 1.3× recurring revenue for dental
What moves the multiple. Regulatory (CQC/GDC) rating materially moves multiple
Hospitality
Pubs, restaurants, hotels, coffee shops
Rule of thumb. 1× – 1.5× fair maintainable trade + freehold value for pubs
What moves the multiple. Freehold vs leasehold split changes the calculation entirely
Trades & construction
Plumbing, electrical, roofing, small builders
Rule of thumb. SDE-based: 2× – 3.5× SDE; contract book premium
What moves the multiple. Recurring contracts (councils, housing associations) lift multiple 20–40%
Logistics & distribution
Haulage, warehousing, last-mile, wholesale distribution
Rule of thumb. 4× – 6× EBITDA + net fleet asset value
What moves the multiple. Named-customer concentration > 30% cuts multiple by 15–25%
Retail (independent)
Independent retail, small chains, specialist shops
Rule of thumb. 1× – 2× SDE + stock at cost + fit-out
What moves the multiple. Location + lease term dominate; footfall data increasingly critical
IT & managed services
MSP, IT support, cyber, cloud managed services
Rule of thumb. 6× – 9× EBITDA for MSPs with > 80% recurring revenue
What moves the multiple. MRR concentration + tech-stack modernity move multiple materially
Childcare & education
Nurseries, tutoring, private education, training
Rule of thumb. £/place for nurseries; 4× – 6× EBITDA + property value
What moves the multiple. Ofsted rating + occupancy % are the two dominant levers
Media & marketing
Digital agencies, PR, content, performance marketing
Rule of thumb. 3× – 5× EBITDA for retainer-heavy agencies; project shops discount 30%
What moves the multiple. Retainer ratio + top-3 client concentration dominate the multiple
Direction of travel — 2026 quarter-on-quarter
Sector multiples are not static — 2023 was harsh for consumer businesses, 2024–25 recovered. In 2026 we're seeing three trends:
- Recurring-revenue premium widening. The gap between P25 and P75 in every sector is growing because buyers pay increasingly for predictable cash.
- Micro-band SaaS compressing. Sub-£250k EBITDA SaaS multiples are normalising back from 2021 highs as growth expectations reset.
- Healthcare stable-to-rising. Dental, veterinary and care home multiples firmed through 2025 and are holding into 2026.
Buyer types by sector
Understanding who buys in your sector determines what you should optimise for. PE wants growth and platform-fit; trade wants synergy; search funds want stable cash flow and transferability.
- B2B SaaS: mostly PE and larger trade acquirers.
- Professional services: majority trade (consolidators), some search funds.
- E-commerce: aggregators (specialist FBA holdcos) and trade.
- Manufacturing: trade and PE; owner-managers less common.
- Healthcare: corporate groups and PE-backed platforms.
- Hospitality: individual buyers, small groups.
- Trades & construction: individual acquirers, occasional trade roll-ups.
- Logistics: trade (haulage majors) and PE platforms.
- Retail: individual buyers dominate; some sector consolidators.
- IT managed services: PE-backed MSP platforms are aggressive consolidators.
- Childcare & education: PE-backed group operators.
- Media & marketing: trade (network agencies) and PE.
Using this to pick your buyer pool
The single biggest lever on realised price is running a competitive process with the right buyer pool for your sector. Sell Ltd's Chris drafts a buyer-longlist as part of every Information Memorandum — you approve, we reach out. It's the difference between a mid-range and top-quartile outcome.
Frequently asked questions
How do deal multiples in the UK vary by sector?
Materially. In 2026, UK SME EBITDA multiples span from about 1.0× (weak-trade hospitality) to 18× (best-in-class scaled SaaS). Sector matters more than any single lever inside the business. Once you know your sector's midpoint, size and quality decide where you land within the range.
Which UK SME sectors are hottest for M&A in 2026?
IT managed services, healthcare (especially dental and vet), and specialist manufacturing lead the field on multiple expansion. Hospitality, retail and general trades are compressed by cost inflation and thin buyer pools.
Are multiples rising or falling in 2026?
Stable-to-rising in most sectors after the 2023 correction. Healthcare, MSPs and SaaS have recovered fully. Hospitality and consumer retail remain 15–25% below their 2021 peaks.
How much does customer concentration affect the multiple?
A top-3 customer share above 30% typically drags the multiple by 15–25% versus the sector midpoint. Above 50%, buyers price the risk explicitly and often structure earn-outs against those specific customers.
What lifts a business above its sector midpoint?
Recurring revenue share above 60%, gross margin above sector average, growth above sector average, low owner dependency, and a documented management transition plan. Any three of these five lift you toward P75.
Get a fully-drafted, buyer-ready valuation with Chris
Start the free seller survey. Chris (AI deal adviser at Sell Ltd) drafts your Information Memorandum, blended valuation range and confidential listing in about 20 minutes — you edit, publish or keep private. No retainer, no exclusivity.