December 23, 2025

The Sell Side Masterclass for Tech Services Founders: Valuation Drivers

27 minutes

EPISODE 239: In Part 3 of the Shoot the Moon Masterclass series, Mike, Ryan, and Matt break down how valuation really works for IT services firms—why “the multiple” isn’t the same thing as valuation, and why buyers price future performance and confidence in cash flows. They cover revenue quality (recurring revenue, churn, customer concentration), adjusted EBITDA and clean add-backs, common valuation killers, and what owners can do over 12–24 months to earn a premium.

What Your Business Is Worth: Valuation Drivers for Tech-Services Firms

Valuation vs. EBITDA multiple: why they’re not the same thing

Buyers price future performance and confidence in future cash flows

Revenue quality premiums/discounts: recurring/contracted revenue, churn, concentration

Adjusted EBITDA + add-backs: what’s “clean” vs. what gets rejected

Specialization + growth consistency: vertical expertise can drive premiums

Valuation killers: messy books, contracts, founder dependency

How to increase value in 1–2 years: positioning (incl. AI), revenue quality, leadership/operating model

The Sell Side Masterclass for Tech Services Founders Series:

Part 1. Knowing When It’s Time to Sell: Listen now >>

Part 2. Get Your House in Order: Listen now >>

Our Podcast playlist for Sellers: https://www.revenuerocket.com/podcast-episodes-for-sellers/

Listen to Shoot the Moon on Apple Podcasts or Spotify.

Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.

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