Most metal fabrication businesses in Canada change hands at a multiple of their normalized earnings, typically EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted for owner add-backs. The multiple itself depends on your size, location, growth trajectory, and how much the business depends on you, the owner.
Metal fabrication shops are valued on their order backlog, the diversity of their customers, and whether skilled welders and machinists stay after a sale. A signed backlog, repeat industrial customers, and modern equipment lift value; dependence on one customer or on the owner quoting every job weighs it down.
Pushes the number up
- A signed, profitable order backlog
- Repeat industrial and commercial customers
- Skilled welders and machinists who stay on
- Modern, well-maintained equipment (CNC, laser, press)
Pulls the number down
- Revenue concentrated in one large customer
- Owner quotes and programs every job
- Cyclical exposure to one end-market
- Aging equipment due for replacement
You put in your numbers. We show you two things.
Market data: Sector-specific transaction multiples based on aggregated business transaction reports. Updated quarterly.
Peer benchmarks: Estimates from verified owners in your sector and size range. See what similar businesses are worth, and compare your own expectations against market data and transaction multiples.
Takes about three minutes.
No pitch. No account required. Just your numbers in, and market context out.
Get My InsightsMetal fab shops are valued as a multiple of normalized EBITDA. Backlog, customer diversity, equipment, and owner dependence all move the number. Clariva shows the benchmark range for your size and province.
Higher for shops with a profitable backlog, diversified customers, and skilled crews that stay; lower for owner-run shops reliant on one customer. Enter your numbers to see your range.
Yes. A signed, profitable backlog gives a buyer visibility into future revenue, which supports a stronger offer.
No. The estimate is for benchmarking and context only, and does not replace a formal business valuation. For a transaction, work with an M&A advisor or a Chartered Business Valuator (CBV).
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Not financial advice. Clariva is a data aggregation and compilation tool. All ranges shown on this platform are derived from publicly available transaction data and anonymized user submissions, and are provided for informational and benchmarking purposes only. Nothing on this platform constitutes a formal business valuation, financial advice, or a recommendation to buy or sell. Consult a qualified M&A advisor, Chartered Business Valuator (CBV), or legal counsel before making any financial or transactional decisions. Individual data is never shared or sold. Anonymized, aggregated insights may be used for industry research. You can request deletion of your data at any time by emailing tanner@clariva.ca.