Stage 3+ When Preparing a Business for Sale
Operational Optimization, Legal & Compliance Audit, Preparing Marketing & Due Diligence-to Finally a Close, after Negotiations
The Targeted Buyers
Who are the Buyers that we Target for Your Business to Sell?
Financial Buyers
Private equity firms and acquisition groups that are looking to buy and scale.
Owner Operators
Entrepreneurs or executives ready to step into ownership and lead daily operations.
Strategic Buyers
Existing companies in your industry or adjacent markets looking to expand operations.
Understanding Typical Multiples When Selling a Business
The valuation of a service business is typically determined using a multiple of earnings. However, these multiples vary widely depending on industry, size, profitability, and operational structure.
- Smaller owner-operated service companies often sell using SDE multiples ranging from 2.0x to 3.5x.
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Mid-Sized Service Companies. Companies with stronger systems, staff, and recurring revenue streams can command higher valuations. These businesses often sell for 3x to 5x SDE or 4x to 6x EBITDA.
- Larger service companies with professional management teams and consistent EBITDA may command 6x to 9x EBITDA or more, particularly if private equity buyers are involved.
