IT services rollup advice & multiples

searcher profile

February 24, 2025

by a searcher from Northwestern University - Kellogg School of Management in New York, NY, USA

Working with a tech partner on IT services roll up targets. Looking for two areas of expertise: (1) General advice from searchers who have done rollups in this space###-###-#### Specific insight on purchase multiples for small dealers e.g. $1M to $5M in EBITDA and exit multiples on platforms ~$10M EBITDA range.

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commentor profile
Reply by a professional
from The University of Texas at Austin in Dallas, TX, USA
^redacted‌ There is a big difference between IT Services and ITAD, and I want to be sure I understand your question correctly. IT Services will trade higher than ITAD unless it's a large ITAD company. Happy to see where we can help you - redacted
commentor profile
Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
1) Make sure technology risk is low or absent.
2) Economics should be based on synergy i.e. profit becoming 1 + 1 > 2. Multiple expansion due to size increase should be a gravy on top, not the primary strategy.
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