A multiple is the ratio applied to a financial metric (most commonly EBITDA) to arrive at a valuation. Australian sub-$20M owner-led businesses are most commonly valued at EV/EBITDA multiples ranging from 3x to 9x, with the specific multiple depending on sector, growth profile, customer concentration, founder dependency, and recurring revenue characteristics.
Multiples are not fixed; they are a shorthand for the buyer’s view of risk and growth, and they shift with capital availability, sector sentiment, and the quality of the specific business.