SDE multiple - medical staffing

by a searcher from University of Edinburgh

1 year ago

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

1 like
168 views
5 comments

searcher from Ben-Gurion University of the Negev

HI David, I'm wondering if you can share how did this ended? I'm looking at a similar situation currently.

3 weeks ago | like reply | 1 like

searcher from Rutgers-The State University of New Jersey-Camden - Rutgers School of Business

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?

1 year ago | like reply | 0 likes

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