SDE multiple - medical staffing

May 19, 2023

by a searcher from University of Edinburgh in Shaftesbury SP7, UK

Hey everyone,

I'm trying to figure out a reasonable SDE multiple for a specialist medical staffing business. Appreciate valuation is largely subjective, but curious to get people’s thoughts.
Here are the key details: -Revenues: $4+million (2021/22) -Gross profit: Approximately 20% of revenues -Profitable with an SDE margin of c12% -Established business with over 20+ years of trading history
Risks:

client concentration (2 clients, both top 10 healthcare organisations)
rolling client contracts (90–120-day terms)
small team with current owner not present day to day
Thank you in advance for any insights or suggestions. Best

Reply by a lender
from California State University, Sacramento in Seattle, WA, USA

Hi David. Medical Staffing has a lot of nuance to it. It’s not an auto home run just because it’s healthcare. I’d be happy to talk 1:1 about the opp from a lender perspective if interested. redacted

Reply by a searcher
from Rutgers in Philadelphia, PA, USA

What your roles you're filling is pretty important to the valuation. Recruiting doctors is quite different from CNAs/HHAs. You would also need to specify the client need: is it per diem, assignment, temp-to-perm, or perm placement?

+3 more replies.

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