Can You Sell Your Business for 10× EBITDA? Let’s Talk Reality

Ah, the classic pub proclamation. Right up there with “I would’ve gone pro if it weren’t for my dodgy knee.” Look—your mate isn’t completely wrong. But he’s not exactly buying champagne on facts either.

Let’s break this down in plain English, without the fluff.

📊 First, What Even Is EBITDA?

Before we get carried away with juicy multiples, let’s get our terms right. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation.

In other words: it’s a cleaned-up version of profit that shows how much cash your business generates from operations—before all the financial gubbins.

When someone says “8× EBITDA,” they’re saying the buyer is willing to pay 8 years’ worth of that cashflow for the business.

🎯 So Can You Really Get 10× EBITDA?

Technically, yes. You can. Just like technically, you can run into a unicorn on the school run.

But let’s get real. Most lower mid-market businesses (that’s businesses typically doing £1M–£25M in revenue) sell for somewhere between 4× and 8× EBITDA.

If someone’s paying 10×, they’re either:

• Desperate

• Drunk

• Or you’ve got something truly special on your hands

  
  

🏆 What Makes That 10× Dream Possible?

Now, if you’re still dreaming of that magical 10× number, here’s what helps:

• High-Growth Sector – Tech, healthcare, AI... if you’re riding a big wave, your multiple could get a boost.

• Recurring Revenue – Subscriptions, contracts, retainers. If money lands in your account every month like clockwork, buyers love that.

• Strong Margins – Making big money on each sale? Good.

• Scalability – Got a business that can double in size without doubling the cost? Even better.

• Moat – Patents, trademarks, or something the competition can’t easily copy? That’s gold.

But even with all of those boxes ticked, a 10× sale still requires the right buyer, the right timing, and the right story.

🚫 Common Myths Your Mate Might Believe

Let’s clear up a few more myths your pub crew might be peddling:

• “Size doesn’t matter” – Sorry, but it does. Small businesses usually get lower multiples. More risk = more discount.

• “My accountant says it’s worth that” – Great. Will he buy it, then?

• “I’ve got loads of stock” – That’s not profit. That’s clutter.

• “The buyer can double it” – Maybe. But you don’t get paid for what they might do with it.

  
  

🧾 Here’s The Honest Truth

If your business is:

• Clean

• Profitable

• Growing

• And operating in a sexy sector

...then yes, you might fetch 8× or even 10× EBITDA. But for most businesses, 4–6× is realistic—and fair.

The worst mistake you can make is going to market with daft expectations and chasing unicorns while real buyers walk away.

🍻 Speak to Someone Who’s Actually Done It

Before you trust your mate’s take on M&A, have a proper conversation with someone who’s actually sold businesses—not just chatted about it after three pints.

We’ve helped business owners like you navigate this whole exit journey—from early valuation to getting the deal done.

✅ No waffle

✅ No pressure

✅ Just the straight-up facts from people who’ve been through it dozens of times.

👉 Fancy a no-nonsense chat with someone who’s sold more businesses than your mate’s had hot dinners?