IT Staffing & Contractor Business — 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
2×
Typical
3×
Max
4.5×
Revenue Model
Repeat
Capital Intensity
Low
A typical multiple of 3× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
IT staffing and contractor placement businesses typically trade at 2×–4.5× EBITDA. Established technology client accounts, a qualified contractor database, and specialist skills in cloud, cybersecurity, or data engineering support the upper end. IR35 legislation and the shift to direct employment models are the most significant structural challenges. Low barriers to entry limit multiple expansion.
Key Value Drivers
- Established technology client accounts
- Qualified contractor database in specialist skills
- Cloud, cybersecurity or data engineering specialism
- Managed service capability alongside placement
- Government framework access
Key Risks
- IR35 and off-payroll legislation risk
- Direct employment model shift by clients
- Low barriers to entry
- Economic cycle sensitivity to technology investment
- Margin compression from client vendor management
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.