Multiple of EBITA for industry specific software

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May 20, 2019

by a searcher from Amherst College in Portsmouth, NH 03801, USA

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Reply by a searcher
from Harvard University in Boulder, CO, USA
Funnily I literally just posted detailed info on valuations fast-growing SaaS businesses here - https://www.searchfunder.com/post/valuating-new-and-fast-growing-tech-company. If your prospect isn't fast-growing by those criteria then an EBIDTA multiple would be appropriate and I can share thoughts on that too, lmk!
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Reply by a professional
from Portland State University in Portland, OR, USA
Over in DealStats (www.bvresources.com/dealstats), the current median selling price/EBITDA is 7x for private-to-private transactions of profitable software companies (the harmonic mean is 5.6X and the weighted harmonic mean is 6.8X).
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