If you built a property or construction software company, you built it next to your customers: the letting agent who called about a rent run that went wrong, the estimator who needed the takeoff to match the drawings. Your product took years of that work to become the system they open every morning. When the time comes to sell, the price should recognize all of it.<\/p>\n
So what is a company like yours worth? Since 2015, 1,306 privately held real estate, construction and PropTech software companies have been acquired, 728 of them since 2021. Where terms were published, buyers paid a median of 3.62x revenue (58 deals) and 19.6x EBITDA (23 deals). That EBITDA figure is high; across vertical software, made for one industry, the median is 13.9x (242 deals). The middle half of the revenue multiples ran from 2.42x to 6.16x, so an owner at the top of that range was paid more than two and a half times as much for each dollar of revenue as an owner at the bottom. This page shows what moves a company toward the top, and who the more than 650 buyers in this market are.<\/p>\n
By real estate, construction and PropTech software we mean companies that sell their own software to the built environment. In practical terms that covers:<\/p>\n
The figures are part of our wider software valuation multiples<\/a> research, and software for plants and factories is covered with industrial, energy and manufacturing software<\/a>.<\/p>\n Property and construction software sells at about the same revenue multiple as software as a whole, and at a clearly higher EBITDA multiple: 19.6x against 13.6x. Both multiples divide enterprise value (EV), equity value plus net debt, by revenue or by EBITDA (earnings before interest, tax, depreciation and amortization). The revenue multiple here uses total revenue, so a buyer who quotes a multiple of annual recurring revenue (ARR) works from a smaller base and reaches a higher number for the same deal.<\/p>\n Treat the EBITDA median with some care. Terms are published for a small share of deals: 4.4% carry a revenue multiple and 1.8% an EBITDA multiple. The EBITDA median rests on 23 deals, and 18 of them had a deal size above $20M, so it describes larger, established companies better than small ones. It is also high against the 13.9x for vertical software. Eight of the 23 companies had an EBITDA margin of 13% or less, which lifts some of the multiples, but the other 15 still have a median of 18.0x.<\/p>\n One practical point on the two measures. At these medians they give the same value at an EBITDA margin of about 18%. If your margin is below that, the revenue multiple gives you the bigger figure, and a buyer will want to talk about EBITDA. If it is above, expect the conversation to move to revenue.<\/p>\n The timing story is thin. Deals announced from 2021 to 2025 carry a median of 3.41x revenue (20 deals), against 3.76x for 2015 to 2020 (38 deals). The later period has only six EBITDA deals, so the headline 19.6x rests mainly on the 17 announced before 2021.<\/p>\n Scale pays in this segment. Grouped by the target’s revenue, a figure you know long before any offer arrives, the median revenue multiple rises at each step, and roughly doubles from the smallest band to the $20M to $100M band.<\/p>\nReal Estate and Construction Software Valuation Multiples Compared With All Software<\/h2>\n
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\n \n<\/th>\n Real estate, construction and PropTech software<\/th>\n All software (Aventis database)<\/th>\n<\/tr>\n<\/thead>\n \n Median EV\/Revenue<\/td>\n 3.62x (58 deals)<\/td>\n 3.39x (1,028 deals)<\/td>\n<\/tr>\n \n EV\/Revenue, middle half of deals<\/td>\n 2.42x to 6.16x<\/td>\n 2.04x to 5.94x<\/td>\n<\/tr>\n \n Median EV\/EBITDA<\/td>\n 19.6x (23 deals)<\/td>\n 13.6x (382 deals)<\/td>\n<\/tr>\n \n EV\/EBITDA, middle half of deals<\/td>\n 13.3x to 29.3x<\/td>\n 8.6x to 22.0x<\/td>\n<\/tr>\n \n Median deal size<\/td>\n $20.0M (267 deals)<\/td>\n $23.0M (6,217 deals)<\/td>\n<\/tr>\n<\/tbody>\n<\/table> PropTech and Construction Software Valuation by Company Size<\/h2>\n