Latest / The Buyer & Seller Podcast with Fexingo: Business Brokers, Exits, and Private Sales Explained
How a Small IT Firm Hit 40x EBITDA with Recurring Contracts
In this episode of The Buyer & Seller Podcast, Lucas and Luna break down the remarkable sale of a 12-person managed IT services provider in Austin that sold for 40 times EBITDA. The key? Long-term, scalable contracts with built-in price escalation clauses and a client retention rate above 95 percent. Lucas walks through the specific financial structures, the role of the three-year client commitment, and the due diligence that made buyers comfortable with the multiple. Listeners learn exactly how recurring revenue—even in a crowded IT space—can command premiums usually reserved for software…
The skinny
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