Valuation multiples by sector in Mexico: reference ranges

Valuation multiples by sector in Mexico serve as a reference for comparables and price expectations in SME M&A. This guide summarizes typical EBITDA multiple ranges by sector, how to use them, and their limitations: business size, revenue recurrence, customer concentration and market context (e.g. nearshoring) affect the actual multiple. The ranges are reference only; closing price is negotiated from normalized EBITDA and the risk profile of each deal.

Sector ranges are reference, not destiny. The multiple a buyer pays depends on normalized EBITDA, customer concentration, owner dependence and consideration structure — not only on sector.

What multiple ranges are used by sector in Mexico?

In Mexican SMEs the dominant method is the normalized EBITDA multiple. The table below summarizes typical ranges by sector in the SME segment (companies with EBITDA in the low millions of pesos or dollars). Ranges reflect market transactions and benchmarks; variation by size, margin and recurrence is normal.

Sector	Typical range (EBITDA multiple)	Note
Manufacturing	4x–7x	Auto parts, assembly, maquiladora and manufacturing with recurring contracts often sit at the high end; dependence on few customers or a single input reduces the multiple.
Business services	3x–6x	Consulting, outsourcing, professional services: recurrence and client diversification support a higher multiple; owner dependence or one large contract reduce it.
Logistics and warehousing	5x–8x	High demand in a nearshoring context; long-term contracts and scarce capacity can justify multiples at the high end.
Retail and distribution	3x–5x	Thin margins and inventory turnover; chains or formats with recurrence and brand can approach the high end.
Technology and software	5x–10x	Wide range: businesses with recurring ARR and sustained growth at the high end; more traditional IT services at the low end.
Food and beverage	4x–6x	Processing, distribution or brands with stable channel; commodities or high seasonality typically trade at the low end.

What are the limitations of these ranges?

The ranges are reference and aggregated. In practice, the multiple that applies to a given company depends on:

Size. Very small SMEs (EBITDA < ~MXN 5M or equivalent) often trade at the low end of the range or below; companies in the mid range (EBITDA in the low millions of dollars) can reach the high end of the sector.
Recurrence and concentration. Recurring revenue and diversified customers support a higher multiple; customer concentration or dependence on one large contract reduce it.
Owner dependence. When the owner is the operation and their exit implies operational risk, the buyer discounts; the multiple falls or a larger share of consideration goes contingent (earn-out, note).
Market context. In sectors with high demand (e.g. manufacturing and logistics in a nearshoring context), reference multiples may sit at the high end or above; in contracting sectors, at the low end.

For how to choose the valuation method and the range that applies to a specific business, the guide on valuation methods in Mexico and the one on valuation of an SME in a nearshoring and foreign investment context cover when to use the EBITDA multiple, how to normalize, and how context affects the premium.

In this guide:

Valuation methods for businesses in Mexico — when to use EBITDA, SDE or revenue multiple.

How to structure a purchase offer in Mexico — price and multiple.

Valuation of an SME in a nearshoring and foreign investment context — premiums and adjustments by context.

How to buy a company in Mexico — process for buyers.

How to sell your company in Mexico — process for sellers.

EBITDA multiple — definition and use in M&A.

Sources

What to review after this guide?

The guide on valuation methods in Mexico details when to apply EBITDA, SDE or revenue multiple by business profile. The guide on how to structure a purchase offer connects multiple, normalized EBITDA and offer terms.