Recent Multiples? Small Consulting Firm

investor profile

June 05, 2024

by an investor from The University of Chicago - Booth School of Business in Washington, DC, USA

Does anyone have recent data for multiples (revenue & earnings) for small (<$1M revenue) consulting firms in the management and financial advisory space? I am hearing generally 0.40x to 1.47x for revenue, can anyone corroborate?

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commentor profile
Reply by an intermediary
from Harvard University in San Diego, CA, USA
I HATE revenue multiples, but sometimes they can get you into the right range. I would approach the business like any other professional services firm like a CPA firm. If the owner is the core of the business, you would be looking at maybe 2x SDE, if the work is project based only, it might even be a bit lower. It all will depend on the "infrastructure" of the business and if there are knowledge bases in the company (either written or employees that have the knowledge).
I'd be interested to take a look at this with you and give you more specific input if you would like.
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Reply by a professional
from Southern Oregon University in Portland, OR, USA
Check out our DealStats transactions. https://www.searchfunder.com/bvr/search. DealStats will provide much more than multiples on 100% sold businesses. You can see multiples as well as individual deal data. It's the green button on the left hand side.
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