IT services rollup advice & multiples

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.
from The University of Texas at Austin in Dallas, TX, USA
from The University of Chicago in Chicago, IL, USA
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.