Tag: EBITDA multiple
Consultancy firms are more likely to be valued based on a revenue multiple
There are a few key reasons why consultancy firms are more likely to be valued based on a revenue multiple, while product/manufacturing businesses are more frequently valued on an EBITDA multiple: So in summary, the recurring revenue stream, lower capital requirements, and leverage on talent/knowledge makes revenue a preferable valuation metric for consultancy firms. EBITDA…
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