Pillar

Valuation & Deals

A/E/LS firm valuations typically run 4x to 8x EBITDA, with engineering firms earning higher multiples than surveying-only practices and firms with strong recurring client relationships outperforming those with project-based revenue. The valuation determines how much the bank will lend, what the buyer needs to put down, and what the seller takes home at closing. ESOPs only make economic sense above roughly $15 million in revenue because the setup and administrative costs consume too much of the value below that threshold. For most A/E/LS owners, the right path is a structured SBA-financed sale, where the valuation drives the loan amount and the seller gets cash rather than a note.