Understanding valuation dynamics in the Canadian lower–mid market requires more than rules of thumb. It requires transaction-level data.
This analysis is based on 430+ completed private transactions observed on Hadaly.
Our dataset spans two major Canadian provinces:
Our objective is simple: to provide practical, comparable benchmarks for business brokers, M&A advisors, buyers, and sellers operating in the Canadian SME market.
Similar Multiples Across Different Markets
One result stands out immediately. Despite very different economic structures and deal environments, Québec and Alberta trade at nearly identical EBITDA multiples.
This convergence challenges a common assumption that provincial dynamics alone drive valuation outcomes.
The data suggests a different conclusion: valuation levels are broadly aligned, but deal structure is not.
Deal Size and Market Structure
While pricing multiples converge, transaction profiles diverge significantly.
Québec: Mid-Market-Oriented
- •Transactions concentrate in the $1M–$5M range
- •Higher median deal values and revenues
- •EBITDA normalization and formal M&A processes
- •Buyer pools include financial and strategic acquirers
Alberta: High-Volume Owner-Operator
- •Larger share of sub-$500K transactions
- •Frequently structured around Seller's Discretionary Earnings (SDE)
- •Simpler financing and transition structures
This creates fundamentally different transaction dynamics, even when headline multiples appear similar.
Profitability: More Similar Than Expected
Another notable finding is the consistency in operating performance across both provinces.
Earnings quality and sustainability matter more than geography.
Sector-Level Premiums
Valuation dispersion becomes more pronounced at the sector level, where business models, risk profiles, and transferability play a larger role.
Professional & Scientific Services (NAICS 54)
Alberta transactions show median multiples around 7.3x EBITDA. Premiums reflect human-capital-driven businesses with lower capital intensity.
Healthcare (NAICS 62)
Québec transactions cluster near 5.9x EBITDA. Stability, regulation, and recurring demand support higher valuation levels.
Construction (NAICS 23)
Québec transactions center around 4.3x EBITDA. Alberta shows materially lower multiples, driven by transferability, backlog visibility, and owner dependence.
Across sectors, premiums consistently correlate with:
- •Revenue visibility
- •Operational autonomy
- •Customer concentration
- •Post-transaction continuity
What This Means for the Market
This analysis highlights several practical implications:
- •Multiples alone are insufficient without understanding deal structure
- •Québec and Alberta operate under different transaction mechanics, even at similar valuation levels
- •Sector selection and business model characteristics drive outcomes more than provincial location
For sellers, this underscores the importance of preparation and positioning.
For buyers, it reinforces the need for structure-aware valuation frameworks.
For advisors, it provides a clearer lens for expectation-setting and pricing strategy.
Why Hadaly Matters
The findings in this study are powered by Hadaly, a platform built to give entrepreneurs, advisors, and brokers the same caliber of financial intelligence that large corporations rely on.
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