IT Consulting Firm — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
4×
Typical
6×
Max
8×
Revenue Model
Mixed
Capital Intensity
Low
A typical multiple of 6× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
IT Consulting Firm businesses may trade across a broad 4×–8× EBITDA range, with a typical multiple around 6×. Valuations are driven by recurring engagements, specialist expertise, utilisation and diversified clients. Businesses with stronger recurring revenue, diversified customers, transferable teams and lower owner dependence generally attract the upper end of the range. Key risks include consultant dependence, project volatility, talent retention and technology change.
Key Value Drivers
- Recurring engagements
- Specialist expertise
- Utilisation and diversified clients
- Transferable management and operating systems
Key Risks
- Consultant dependence
- Project volatility
- Talent retention and technology change
- Economic and market volatility
Related Industries
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.