I am actively in pursuit of a niche B2B SaaS/subscription-based business that has US$4mm in EBITDA across 3000+ customers. The business has shown strong long-term stability in the US$7mm revenue and US$4mm EBITDA range but has been range bound as it is self-admittedly undermanaged (run like a lifestyle business) with material opportunities for growth post-acquisition which will require moderate investment to pursue and capture.

I am curious on the Searchfunder community thoughts regarding valuation on a SaaS / Subscription business like this as the seller is seeking US$25mm+ enterprise value (or 6.5x EV/EBITDA).

I am curious on thoughts on valuation range (is this range fair), structuring thoughts to bridge risk / reward and any other insights that may be provided.