Executive Summary
Mid-market M&A multiples held steady in Q3 2026, with deal flow concentrated in the $10M–$50M band where roughly 55% of transaction volume lives. Fintech continues to demand the richest multiples — median 11.3x EV/EBITDA — driven by recurring-revenue business models, while manufacturing sits at the bottom of the pack at 5.9x as buyers discount capex-heavy operations. Healthcare and construction held flat quarter-over-quarter, though healthcare's spread widened meaningfully as quality dispersion across target assets increased.
For PE and family office buyers, the practical takeaway: pricing power in the $25M–$50M tier is highest right now, multiples are defensible on quality deals with clean financials, and the gap between top-quartile and bottom-quartile assets continues to widen — rewarding due diligence more than ever.
EV/EBITDA Multiples by Sector
Median enterprise value to EBITDA multiples for closed and announced mid-market transactions ($5M–$100M deal size) in Q3 2026. Sample drawn across construction, healthcare, fintech, and manufacturing — DealSignal's core verticals.
| Sector | Median EV/EBITDA | Range (Q1–Q3) | Deal count |
|---|---|---|---|
| Construction | 6.8x | 5.2x – 8.4x | n = 42 |
| Healthcare | 9.1x | 7.0x – 12.0x | n = 58 |
| Fintech | 11.3x | 6.0x – 18.5x | n = 35 |
| Manufacturing | 5.9x | 4.4x – 7.6x | n = 29 |
Fintech's wide dispersion reflects the gap between infrastructure plays (10–14x) and consumer-facing platforms (6–9x). Healthcare's spread widened in Q3 as quality differentiation across target assets increased.
Deal-Size Distribution
Where mid-market volume actually sits: 57% of deals in our sample land in the $10M–$50M band, but the $75M–$100M bucket remains a meaningful 9% of volume where buyers compete most aggressively for scarcity supply.
Q3 2026 mid-market deal-size distribution · n = 164 closed or announced transactions.
Comps Benchmarks by Sector
Beyond EV/EBITDA, here are the reference multiples and operating metrics that buyers are underwriting against right now. Use these as the floor for your initial model — quality assets routinely clear these marks.
Revenue multiples: 3.5x – 8.0x ARR · Recurring revenue: >70%
SaaS-led fintech composites trade at the high end of this range; transactional platforms sit at the low end. Buyers pay for net dollar retention above 110% and gross margins above 75%.
EBITDA margin: 18% – 28% · EBITDA growth: >12%
Higher margins and double-digit growth rate extend multiples toward 12x. Regulatory complexity (CMS reimbursement exposure, RCM risk) is the dominant adjustment factor in diligence.
Revenue multiples: 0.8x – 1.5x · Backlog coverage: >12 months
Asset-lite specialty contractors with concentrated project pipelines command premium multiples. Buyer scrutiny focuses on customer concentration and contract surety.
EBITDA margin: 12% – 20% · Capex intensity: <8% of revenue
Low-capex, defensible-margin businesses with strong customer mix stay near the median. Capex-heavy operators without clear moats are seeing buyers discount aggressively.
Growth-to-multiple ratios across sectors
Banker's favorite shortcut: a target growing 15%+ EBITDA at mid-sector multiples outperforms static higher-multiple peers inside 3 years on a TEV outcome basis. Median growth in our Q3 sample: 9%.
What This Means for Dealmakers
- Pricing power is concentrated in the $25M–$50M band. Two thirds of competing buyers cluster here. Sellers of high-quality assets in this size range carry the leverage. Buyers should prepare to clear median multiples fast or lose the auction.
- The quality spread keeps widening. Top-quartile assets outperform bottom-quartile by 1.8x in our cohort. Do more diligence, not less — the gap between winners and dogs is the genuine margin in mid-market right now.
- Fintech premiums are real but conditional. 11.3x is only defensible if net dollar retention holds above 110% and recurring revenue spans above 70%. Walk away from anything that doesn't clear those gates.
- Manufacturing needs a story. At 5.9x median, deals close when there's a defensible margin story or a roll-up plan. Pure commodity operations in this range are getting passed.
- Healthcare dispersion rewards specialists. If you have a clear thesis on a sub-vertical (RCM, ASC, specialty pharma services), the 12x end of the range is achievable. Generalists are paying closer to 7.5x.
Methodology & Sources
Sample: 164 closed or announced mid-market transactions ($5M–$100M enterprise value) tracked in DealSignal's pipeline between July 2025 and June 2026, drawn across the four core sectors. Note: Figures shown are illustrative demo values consistent with observed mid-market ranges — they are not derived from a live source feed.
Period: Q3 2026 (calendar). Sources: SEC EDGAR 8-K filings, industry press, and direct deal announcements syndicated through DealSignal's monitoring pipeline. Multiples are calculated on enterprise value to trailing twelve-month EBITDA at announcement.
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