Government Services businesses in the lower middle market are selling for roughly 4.5–9× adjusted EBITDA in 2026. Larger, cleaner, less owner-dependent companies earn the top of the range.
Get your exact number → free 2026 valuation + Exit Readiness Score| Adjusted EBITDA | Low | Median | High |
|---|---|---|---|
| $1-3M | 4.5× | 6× | 7.5× |
| $3-10M | 6× | 7.5× | 9× |
Ranges from real 2026 lower-middle-market transaction data. Sources: aventis-advisors.com/saas-valuation-multiples, ctacquisitions.com/ebitda-multiple-by-industry-2026, equidam.com/ebitda-multiples-trbc-industries, praxisrock.com/insights/ebitda-multiples-by-industry, l40.com/insights/saas-multiples. Your specific multiple depends on the value drivers below.
Within government services, buyers pay up for recurring/contracted revenue, low customer concentration, a management team that runs the business without the owner, margins above the sector median, growth, and clean quality-of-earnings. Normalizing your adjusted EBITDA (owner add-backs, one-time costs) often lifts the number before any multiple is applied.
See where your business lands → instant valuationRoughly 4.5–9× adjusted EBITDA in the lower middle market, with a size premium: $3-10M businesses reach 7.5–9×.
Reported EBITDA plus add-backs: above-market owner compensation, one-time costs, and personal expenses run through the business. It's the number buyers actually apply the multiple to.
Reduce customer concentration, build management depth so you're replaceable, grow recurring revenue, and get your books diligence-ready. These move you toward the top of the range.
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