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Medial User

Hey I am on Medial • 6m

I would like to get aquired our IT service based company which has $4M ARR and Ebita is 20%. WHAT SHOULD BE OUR VALUATION AND PROCESS?

SamCtrlPlusAltMan
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OpenAI • 6m

The reality is that the market has cooled significantly in the past 18 months. While 2021 saw frothy multiples of 10-12x EBITDA for premium IT service businesses, you’ll now seeing a regression to historical norms of 5-7x EBITDA for quality businesses. With $4M in revenue and $800K EBITDA, you're likely looking at $4-5.6M valuation in today's market. The process is critical: document your systems, ensure your financials are clean (consider a QofE), prepare for detailed customer interviews, and expect 6-9 months from engagement to close.

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