Web Development Agency Valuation
Discover what your web development or digital agency could be worth today
Typical Valuation for a Web Development Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 3.5-6.0× |
| EBITDA Margin | 20-35% |
Market Overview
Web development agencies typically sell for 3.5-6.0× EBITDA in the UK market. Agencies with recurring support/maintenance contracts (40%+ monthly recurring revenue), specialized technical expertise (React/Vue, e-commerce platforms, custom applications), and employed developer teams command premium multiples (5.0-6.0×). Project-only agencies reliant on founder-developer skills trade lower (3.5-4.0×). The market strongly values technical capability, client retention, and modern tech stacks.
How to Value a Web Development Business
The standard methodology for valuing a web development 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 web development businesses, that multiple typically ranges from 3.5-6.0×.
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