Catering Services Business Valuation
Discover what your commercial or event catering business could be worth today
Typical Valuation for a Catering Services Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 3.5-5.5× |
| EBITDA Margin | 12-22% |
Market Overview
Catering businesses typically sell for 3.5-5.5× EBITDA in the UK market. Companies with recurring contract catering (corporate, schools, healthcare) and owned commercial kitchens command premium multiples (5.0-5.5×). Event catering or owner-chef businesses trade lower (3.5-4.0×). The market values long-term contracts, food safety compliance (5-star rating), employed chef teams, and commercial kitchen ownership.
How to Value a Catering Services Business
The standard methodology for valuing a catering services business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For catering services businesses, that multiple typically ranges from 3.5-5.5×.
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Company Valuation Calculator provides free, instant business valuations for UK SME owners. If your business generates between £250k and £1M EBITDA, we may be interested in acquiring it directly.