ABC Business Sales Market Intelligence Report Dec 23 - Flipbook - Page 10
HOSPITALITY
BUSINESS
MULTIPLES
(MEDIAN)
12 Month Rolling Average
Dec-21
Dec-22
Dec-23
Dec-23 vs Dec-22
Dec-23 vs Dec-21
Hospitality EBITPDA Median
Multiple
2.19
1.94
1.92
(1%)
(12%)
Here is what the table tells us in regard to multiples paid for NZ Hospitality businesses:
•
The median EBITPDA multiple being paid for Hospitality businesses as at Dec-23 is 1.92x. The EBITPDA number excludes the
owner’s salary and as such is the full return paid to a working owner which is industry standard for hospitality businesses.
(Different to managed EBITDA)
•
The table shows the median multiple has not moved out of the 1.9x-2.2x range in the last three years and has stayed
relatively stable in what has been a very challenging market for hospitality given the covid effect.
•
Our insights suggest the multiple has declined for 2023 due to higher volumes of smaller hospitality businesses being sold
to migrants (our data clearly shows smaller businesses have smaller multiples).
Data Source
•
The EBITPDA number excludes the owner’s salary and as such is the full return paid to a working owner which is the
industry standard for hospitality businesses. (Different from managed EBITDA)
•
The data used for calculating the median multiple were all business sales in 2021-23 (~500 transactions)