It starts with what buyers have actually paid
Private companies usually sell for a multiple of their EBITDA, and larger companies tend to command higher multiples. We start from the average multiples paid in private-equity-backed transactions for companies of your size.
| $3M to $5M | 6.8x |
|---|---|
| $5M to $8M | 7.3x |
| $8M to $10M | 7.4x |
| Over $10M | 8.2x |