Insights

Building services companies in the lower middle market have generally sold for 3.5x to 8.0x adjusted EBITDA since 2021. EBITDA and revenue size set the range; contract revenue quality, workforce compliance, customer concentration and the owner’s role in daily operations determine where a valuation ends up.

Security guard companies with $5 million to $250 million in revenue have generally sold for 3x to 12x adjusted EBITDA since 2021. EBITDA and revenue size set the range; contract terms, customer concentration, post risk, labor margins, and the owner’s role in daily operations then decide where a company lands within it.

We all say in this industry that the best time to prepare is three to five years before you want to sell. The reality is that’s often not something owners do. They’re busy running their businesses. Usually, they come to the realization that they aren’t having fun anymore, they want to do something else, and…

Owners often come to us asking, “Should I sell my business now, or would I be better off waiting?” Usually, they want to know about the market. Is it a good market right now? Am I likely to get a higher value or a lower value? But the truth is, the market is rarely the…

We have seen this happen multiple times. Very smart people, running good businesses, make significant decisions right before or during a sale process, and almost never mention it to their advisor. It is not one type of owner or one type of business. The pattern keeps showing up. Three Deals Where Timing Affected Value A…

Most owners have a picture in their head of who will buy their business, such as a competitor or a larger company in the same industry. That picture feels logical, but it’s almost never accurate.