Issue 002 — SBA-range SMB Market, Week of April 13

Preheader: 24 listings reviewed. Sample median 3.93x. Healthcare dispersion persists. Three real-estate-inclusive listings distort category reads again.

Twenty-four listings in the $1M–$5M cash flow range were reviewed from BizBuySell for the week of April 13–20, 2026. The sample median asking multiple was 3.93x, with a range from 1.87x to 8.42x across operating businesses. Healthcare services dispersion persisted, with two home health agencies pricing at 1.87x and 5.63x respectively in the same sub-category. Real-estate-inclusive listings again ran at the upper boundary of the distribution, with three listings including operating real estate in the asking price.

One FedEx Ground route package ($1.8M asking on $1.26M cash flow) was excluded from median calculations, consistent with the route-purchase exclusion established in Issue 001. Route acquisitions are priced against territory rights and rolling stock rather than operating earnings and do not belong in the same comparison set.

Sample median moved from 4.64x (Issue 001, n=23) to 3.93x (Issue 002, n=23). One week does not constitute a trend; the magnitude of the move (0.71x, or 15%) is within the range expected from sample composition differences at this stage. This publication will continue reporting week-over-week directional change and transition to rolling 90-day medians beginning Issue 010, at which point directional signal becomes more reliable.

One specific category change warrants note. Manufacturing multiples in Issue 001 (n=2, median 7.67x, range 6.28x–9.06x) ran notably above other operating categories, and the question flagged for this issue was whether the observation represented category-level pricing or a small-sample artifact. Issue 002 manufacturing (n=3, median 3.88x, range 3.23x–5.85x) suggests the Issue 001 reading was largely a small-sample artifact. In particular, the Issue 001 Custom Cabinet listing at 9.06x was real-estate-inclusive, and the implied operating multiple net of property was likely well below that figure.

Methodology: asking multiples computed as asking price ÷ disclosed cash flow (SDE or EBITDA as stated by broker). Sample of 24 listings reviewed for the week, 23 included in median calculations after excluding the route-purchase listing and substituting EBITDA for one construction listing that did not disclose SDE.

Super-categories with n=1 are reported for transparency but should not be read as category benchmarks. As weekly samples accumulate, rolling 90-day medians will replace the current-week baseline.

Ranked by asking multiple, ascending. Sample median 3.93x. Top five discussed.

Asking $2.1M on $1.125M SDE. Implied multiple 1.87x, 52% below the sample median. The most anomalously-low operating-business multiple in the sample.

Established 2008, Joint Commission accredited, with an average daily census of 70–80 patients and reported $3.33M in annual revenue. A 1.87x multiple on a Medicare-eligible home health agency in a major metro is well below category norms, which typically run 3.5x–5x SDE for comparable operators.

Diligence priority: payer mix and reimbursement sustainability. Home health SDE can compress sharply if a disproportionate share of revenue is concentrated in Medicare Advantage plans paying below Traditional Medicare rates, or if the agency's CMS star rating has drifted downward recently. The agency description cites Joint Commission accreditation but does not disclose star rating or rehospitalization metrics. Star rating history, active Medicare Advantage contracts, and the most recent CMS survey are the first items to request. A second Vegas home health agency in this week's sample priced at 5.63x on comparable revenue; the 3x intra-category spread is the question to resolve.

Asking $4.0M on $1.91M SDE (2024 basis). Implied multiple 2.09x, 47% below the sample median.

Multifamily-focused electrical subcontractor with two premier general contractor relationships. The listing discloses that 2024 EBITDA was approximately $4M, while 2025 EBITDA was approximately $2M; the $1.91M SDE used for the multiple appears to reference the more recent period. The listing also notes that amended tax returns are currently being filed to correct prior percentage-of-completion accounting, and that the deal returned to market after a prior buyer walked.

Diligence priority: earnings recognition and 2023 loss characterization. The listing's own disclosures — amended returns, prior percentage-of-completion misapplication, and a reported 2023 loss described as a "cumulative timing effect from prior years" — are material. An SBA lender will require reconciled financials before funding, and the asking price implicitly assumes the amended returns will support the 2024 EBITDA figure. The pipeline is real ($9.6M across four active projects, average project size $2M–$3M), but customer concentration with only two premier GCs is the underlying risk the multiple is reflecting.

Asking $3.0M on $1.33M SDE. Implied multiple 2.26x, 42% below the sample median.

Multi-unit wellness beverage franchise. The listing does not disclose gross revenue, unit count, or location-level economics.

Diligence priority: undisclosed revenue. In a cash-flow-based valuation, the absence of disclosed gross revenue is itself the flag. Revenue figures permit margin analysis and same-unit economics review, both of which franchise buyers routinely run before LOI. Unit count, average unit volume, franchise royalty structure, and territorial rights are the base-case items to request. Where revenue is withheld, the buyer should assume it is for a reason and price in the information asymmetry.

Asking $10.0M on $3.21M SDE. Implied multiple 3.11x, 21% below the sample median.

Water mitigation, mold remediation, and emergency roof tarping, serving Broward, Miami-Dade, and Palm Beach counties. Established 2022. 85%–95% of jobs are insurance-related. Roughly 15 employees and subcontractors.

Diligence priority: SDE margin on a three-year-old business. Reported SDE of $3.21M on $5.44M revenue implies a 59% SDE margin. That margin is extremely high for a restoration business, where industry operators typically report 15%–25% EBITDA margins after labor, equipment, subcontractor costs, and insurance-required certifications. An owner-operator business at this size with 59% margin usually reflects one of three conditions: (a) the owner is taking minimal compensation and most "SDE" is actually owner compensation; (b) major cost categories are off the P&L (owner-operated trucks, unpaid labor, below-market facilities); or (c) the numbers reflect a peak single-year result not yet normalized for claims cycle. An add-back schedule and a three-year margin history are essential before proceeding.

Asking $3.5M on $1.1M SDE. Implied multiple 3.18x, 19% below the sample median.

Residential and commercial plumbing, $3M annual revenue, $1M "net" per the listing title. The broker's written description is essentially marketing copy and discloses no specifics about commercial vs. residential mix, recurring maintenance contracts, customer concentration, or technician count.

Diligence priority: revenue composition and recurrence. Plumbing businesses in this size range can legitimately justify multiples from 2.5x to 4.5x SDE depending on whether revenue is concentrated in reactive service calls (lower multiple, higher commoditization risk) or in recurring commercial maintenance contracts (higher multiple, more defensible). The listing does not address this, and the 3.18x multiple is in the middle of the range, suggesting the broker has not positioned for either end. Commercial contract book, technician headcount, 24-hour emergency service mix, and the number of active commercial accounts above $5K annually are the first items to request.

Gas Station, C-Store, and 6 Acres, Las Vegas, NV. Asking $10.1M on $1.2M EBITDA. Implied multiple 8.42x, 114% above the sample median and the highest in the sample. Real estate is included; the listing states approximately 6 acres of land with three buildings, with the property separately valued at approximately $6.5M. Stripping the property value from the asking price yields an implied operating multiple of roughly 3.0x EBITDA, which is consistent with gas station operating norms. The headline multiple is a real estate transaction with an operating business attached.

Tropical Foliage Nursery, Miami-Dade County, FL. Asking $9.3M on $1.23M SDE. Implied multiple 7.58x. Real estate is included — approximately 25 acres of owned land supporting core operations. Nursery operating multiples typically run 3x–4x SDE in this size range. The 7.58x figure is again an RE-blended multiple rather than an operating-business multiple. An independent appraisal of 25 acres in Miami-Dade will substantially determine the implied operating multiple.

50+ Year Stone Fabrication, Onondaga County, NY. Asking $7.0M on $1.12M SDE. Implied multiple 6.28x, 60% above the sample median and unusual for a home-services business without real estate. Fifty-plus years of operating history and multi-generational reputation can support premium pricing, but 6.28x on a Central New York tile and stone fabricator is difficult to justify against regional pricing norms of 2.5x–3.5x SDE for comparable businesses.

Diligence priority: revenue normalization and owner dependency. The business description emphasizes "high repeat and referral business" and "deep-rooted relationships," language that often correlates with a single long-tenured owner whose relationships are the business. Revenue-per-employee, contractor/builder repeat ratios, and whether the current owner is the commercial relationship holder are the first questions. A multi-generational business where the departing owner is the revenue driver can trade at 2.5x quickly after transition.

Steel Detailing Firm, New Castle County, DE. Asking $13M on $2.19M SDE. Implied multiple 5.95x. The listing reports revenue of $2.8M, implying an SDE margin of 78%, which is not achievable in professional services at this revenue scale under any standard accounting treatment. The likely explanation is that "cash flow" in this listing reflects a blended figure that includes offshore labor cost arbitrage not fully reflected on the P&L, or a different reporting convention than most SBA-priced deals. Without reconciled financials, the multiple is not interpretable under the sample's framework. This listing would typically be re-examined or excluded from the sample on second-pass review.

25 FedEx Ground Routes, South Tucson, AZ. Asking $1.8M on $1.26M cash flow, implied multiple 1.43x. Excluded from median calculations. Route-purchase transactions price against territory rights, contract terms, and fleet value rather than a multiple of operating earnings. The asking structure itself ($1.15M cash + $450K vehicle financing + $200K seller note) reflects the different underwriting framework. Consistent with Issue 001 methodology (Flowers Bread Route exclusion).

Manufacturing multiples in the current week (n=3, median 3.88x) revised the Issue 001 observation. The Issue 001 sample (n=2, median 7.67x) included a real-estate-inclusive listing that inflated the read. Two issues of data are still not enough to establish a category benchmark. Continuing to track.

Healthcare services dispersion continued to present the widest intra-category range in the sample (1.87x to 5.63x in Issue 002; 2.92x to 8.33x in Issue 001). Sub-category segmentation into primary care, specialty clinical, home health, aesthetics, and mental health/addiction was flagged for Issue 002 introduction but is deferred to Issue 003. Current healthcare sample (n=3 in Issue 002, n=4 in Issue 001) is insufficient for meaningful sub-category medians. Sub-category tracking will begin as listings accumulate.

Real-estate-inclusive listings appeared in three of this week's 24 listings (Telecom Contractor NJ, Gas Station NV, Tropical Foliage Nursery FL) and three of Issue 001's 25 listings. Systematic understatement of operating-business multiples on RE-included listings now appears as a persistent feature of the sample rather than a one-week occurrence. A separate reporting column for RE-included deals is under active consideration for Issue 004 introduction.

Construction category was introduced this week (n=4) and did not appear in Issue 001. Category-level pricing (median 5.34x) ran above the sample median. A second week of data will test whether this reflects category-level pricing or one-week composition.

Three listings in this week's sample reported SDE margins that appear mechanically implausible given revenue levels (Steel Detailing 78%, Industrial Manufacturing VA 63%, Excavation UT 61%). A methodology note on how this publication handles unreconciled margin claims will be introduced in Issue 003.

SDE refers to Seller's Discretionary Earnings. Most listings in this cash flow range are priced against SDE rather than EBITDA. The broker's stated metric is used; SDE is typical below $2M, EBITDA above. Where a broker discloses EBITDA but not SDE (one listing this week), EBITDA is substituted for the multiple calculation.

Sample median is computed from the set of listings reviewed for the week with disclosed financials. Categories with n=1 are reported for transparency but not used for outlier identification. As sample sizes accumulate over subsequent weeks, rolling 90-day category medians will replace the current-week sample baseline, targeted for Issue 010.

Diligence priority denotes the first question to pursue in commercial review based on the listing as disclosed. It is not a valuation judgment.

Real estate included designates listings where the broker states the asking price includes ownership of the operating property. The implied operating-business multiple cannot be isolated from these listings without broker-provided allocation or independent appraisal.

Margin implausibility refers to reported SDE figures that imply a margin substantially above category norms for the revenue scale. Such listings are retained in the sample for transparency but flagged in diligence commentary.

The EBITDA Report compiles public listing data. Not legal, financial, tax, or investment advice. Independent verification and professional diligence are required before any acquisition decision.

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