I am evaluating an opportunity in the SaaS space and the broker and owner are seeking a revenue-based multiple. The company is small (sub $4MM in rev), but has had very good growth and ebitda margins over the last three years. There is a recurring revenue model in place, low churn, and opportunities to expand the business. A revenue-based multiple yields a much higher enterprise value (double of what my EBITDA-based multiple would have yielded), and as such leveraging the business with senior debt would not be the structure I would go with. Wondering if folks in the community have utilized revenue-based multiples in the lower middle market and how they have moved forward with the structure? Thanks!