Pillar
Valuation & Deals
A/E/LS firm valuations run 1.5x to 4.0x SDE below $2M in sales, and 4.0x to 8.0x EBITDA from $2M to $10M, with size and profitability the main drivers. Engineering firms earn higher multiples than surveying-only practices, and firms with strong recurring client relationships outperform those with project-based work. 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.
Valuation & Deals
Need, Want, Worth: The Three Numbers Before You Sell
Every A/E firm owner carries three numbers: what they need to retire, what they want, and what the firm is worth. How to tell which gap actually matters.
Valuation & Deals
The Hidden Value Drivers in an A/E Firm, and How to Build Them Before You Sell
The biggest hidden driver of your A/E firm's value is how much it depends on you. Reduce owner reliance and build these value drivers before you sell.
Valuation & Deals
What Is Your Engineering Firm Actually Worth?
A plain-language guide to valuing an engineering or architecture firm: the cash flow that drives value, the rule-of-thumb multiples, and why banks care.
Valuation & Deals
EBITDA Multiples for A/E Firms: What Your Firm Is Actually Worth in 2026
A/E firms with $2M to $10M in sales run 4.0x to 8.0x EBITDA. Firms below $2M are valued on 1.5x to 4.0x SDE. See what moves your multiple.
Valuation & Deals
How to Value Your A/E/LS Firm for a 3-4 Year Exit
A/E firm valuations run 1.5x to 4.0x SDE below $2M in sales, or 4.0x to 8.0x EBITDA from $2M to $10M. Learn what drives your firm's worth.