What is Ebitda Multiple for the valuation of offshore software dev firm?

by a searcher from Northwestern University - Kellogg School of Management

11 months ago

What are reasonable Ebitda Multiple ranges for the valuation of offshore software development firms - (e.g. staff augmentation). What are they key drivers that affect the valuation of firms providing custom software development services?

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intermediary from New York University - Leonard N. Stern School of Business

As a services business, they will go from 3-5x. Length of customer contracts, types of customers and technical expertise, and size of engagements all go into the valuation. If they aren't Fortune 1000 type clients, it will be hard to find a buyer for the business. It doesn't mean you can't make good money by owning the company but it will be hard to sell the business when it is time for an exit.

11 months ago | like reply | 0 likes

admin from Massachusetts Institute of Technology - MIT Sloan School of Management

^Searchfunder member‌ have commented on software development and/or staff augmentation and might be able to provide some insights here. Very few people have commented specifically on offshore software development, so I'm hoping you can still get a few good responses from folks with general knowledge of the industry.
There are also hundreds of software development transactions available under the BVR Transactions tab at the top of this page. ^Searchfunder member‌ might be able to help you find the most relevant ones. Here is the direct link: www.searchfunder.com/bvr/search

11 months ago | like reply | 0 likes

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