Valuation with revenue from project and recurring?

November 16, 2024
by a searcher from New York University - Leonard N. Stern School of Business in Grand Rapids, MI, USA
If you have a business that does 40% recurring and 60% project, how do you think about the valuation?
What about the reverse, 60% recurring and 40% project?
Are you shifting valuation logic dramatically if $1m EBITDA vs $2m EBITDA?
Saw an MSP deal and was curious how other approach this. It's obviously more simple if majority of business is recurring revenue or project-based revenue.
from Northwestern University in Minneapolis, MN, USA
from Cornell University in Grand Rapids, MI, USA