Shoot the Moon with Revenue Rocket

The Sell Side Masterclass for Tech Services Founders: Valuation Drivers

Episode Summary

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.

Episode Notes

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/