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What is a software or tech business worth?

Software and tech businesses that sold from 2021 to 2025 went for a median of 3.19x seller's discretionary earnings (SDE). The middle half sold for 2.5x to 3.95x. ^[1]

Last verified October 24, 2026

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What multiple do software and tech businesses sell for?

Lower quartile

2.5x

Median

3.19x

Upper quartile

3.95x

Times seller's discretionary earnings (SDE). Software & technology, BizBuySell, sales 2021–2025; 2,271 sales.

SDE is the profit one owner takes out of the business: pre-tax profit plus one owner's pay and perks, interest, depreciation and one-time costs. How we calculate it.

What raises the value of software and tech businesses?

• Scalable, low-labor models (SaaS/software) carry a premium over service-heavy models (managed IT). ^[1]
• Upper-quartile pricing goes with consistent financials, above-average revenue and earnings, growth potential, low owner involvement, a competitive advantage and seller financing (common to all BizBuySell benchmark pages). ^[2]

What lowers the value of software and tech businesses?

• Lower-quartile pricing goes with low sales volume, thin margins, full-time owner involvement and many competitors (common to all BizBuySell benchmark pages). ^[2]

What is the market for software and tech businesses like?

• GF Data lower-middle-market technology TEV/EBITDA 5.7x in 2026, down from 6.7x in 2025 and a 10.2x high in 2023; lowest of industries listed. ^[3]
• Q1 2026 Market Pulse: on AI's effect on valuation, 67% of advisors saw no material impact, 12% upside, 3% downside. ^[4]

Which types of business does this cover?

Each type uses its own published quartiles where they exist; the rest use the broader category, and the table says which.

Low and high are the lower and upper quartiles: the middle half of sales. Figures are BizBuySell, businesses sold 2021–2025.

App businesses

Based on the broader category (Software & technology): no published quartiles for app businesses.

Market notes:

• BizBuySell groups apps with software; Flippa apps 2.62x vs SaaS 2.47x average profit (global, small) – no clear sourced difference. ^{[5, 6]}

Value a app businesses business

IT services, MSPs & dev shops

Median 2.93x SDE; middle half 2.2x to 3.87x (sample size not published). ^[7]

Lowers value:

• Ongoing service requirements make these 'slightly less attractive than pure software'. ^[7]

Value a it services, msps & dev shops business

Graphic & web design

Based on the broader category (Software & technology): no published quartiles for graphic & web design.

Value a graphic & web design business

Cell phone & computer repair

Based on the broader category (Software & technology): no published quartiles for cell phone & computer repair.

Value a cell phone & computer repair business

How should you use these numbers?

Multiply your SDE by a multiple in the range to get a rough price for the business, not counting real estate. Where you land in the range depends on how much the business depends on you, how much revenue repeats, growth, customer concentration and the other factors in the calculator. Half of all sales land outside the quartile range, so a real deal can go higher or lower.

Where do these numbers come from?