Hello everyone,

My background over the past 5 years has been primarily on acquiring manufacturing and industrial service businesses in Canada and the US for a family office. Now I am also looking at expanding our operations into more recurring revenue service businesses, generally with industrial/commercial/institutional customers.. Naturally these provide generally more consistent financial performance and thus less risk than project-based businesses, often better cash flows, margins, etc.

My question is: how to value them differently? I know some acquirers use MRR multiples instead of EBITDA, or perhaps value on DCF. Just curious to hear any thoughts

I'm not looking for a cut and dry answer here, since there isn't one and every situation can be different. But has anyone come across any resources that are helpful in valuing / structuring recurring revenue businesses?

Thanks in advance