Does anyone have any experience valuing cybersecurity services companies?

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July 23, 2021

by a searcher from University of Pennsylvania - The Wharton School in Seattle, WA, USA

Looking for a thought partner who might have some experience valuing cybersecurity services companies. Also looking to connect with anyone who has come across some cybersecurity services companies for sale.

Thanks so much,

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commentor profile
Reply by a searcher
from Babson College in Arlington, VA, USA
Yes - be prepared for HIGH multiples. I previously worked in the sector, and was was unable to find anything decent that was remotely close to doable without serious equity. Even in the small business space. Definitely nothing that would be 7a qualified. I was searching exclusively in the federal/commercial services sector, so not software, which I imagine wouldn't be feasible for an independent searcher in most instances. YMMV, but that was my experience circa###-###-#### If you find otherwise, let us know!
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Reply by a searcher
from Babson College in Arlington, VA, USA
I don't want to discourage you. I'll add - you may get lucky. Prior to my search, I read a case study of a fellow Babson alum that searched before cyber was "hot," around '08-'09" that acquired a services company in New England for a decent multiple. I believe this searcher had a great exit due to the industry blowing up in subsequent years. Again, if you decide to pursue this sector, I would recommend going the funded route unless you have serious equity to inject.
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