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Technology Valuation
From web development to ecommerce, lets hone in on your industry sub-sector valuation multiples.
Our Credentials
Technology Valuation Factors
There is no one size fits all multiple for Technology Businesses. With EBITDA multiples that range from 4x to 20x, it pays to get an expert, 3rd party valuation assessment.
In addition to the standard asset, income, and market approach, it is essential that the valuation considers customer acquisition costs, monthly and annual recurring revenue, company growth trends, customer churn, and website traffic. This can make an enormous difference when determining the most appropriate EBITDA multiple, discount and growth rate for determining the fair market value of your business.
Key Valuation Factors
Key Considerations When Valuing a Technology Company:
Sector Experience
Technology companies differ in size, scope, and expertise. We have experience performing valuations for:
Building Business Value
Whether you are an ecommerce company or software as a service there are 4 key ways to improve your company’s valuation:
Report Options
Reports differ on your need and use case:
Receiving an Opinion of value is ideal for exit planning, succession planning, wealth management planning. This is our main offering, and is used to determine a likely Sales Price on a business. This is performed by one of our Ecommerce business experts holding an MBA, CBI or NAVCA certification.
Or a Conclusion of Value is performed by our NACVA Analyst. This is ideal for Tax Reporting, Shareholder Dispute, Compliance, and Legal Proceedings(i.e. Divorce, Trust, Estate) where the valuation may be evidence in an arbitration or court proceeding. This is only performed by our NAVCA Valuation Analysts.
Valuation Deliverables
With either valuation offering, you’ll receive:
Want to see a sample report?
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Why Exit Equity
Benefits of Exit Equity’s Manufacturing Business Valuation Services:
Deal Outcome
Don’t just take our word for it, learn more how an Exit Equity client found a strategic buyer to fund the next stage of company growth
Phil brzytwa
M&A Intermediary
Keith rogstad
MBA, AVA · Business Valuation Analyst
Kara Gibson Brzytwa
MBA, CBI · Managing Principal
Corey Gregg
CBI, CM&AP · M&A Intermediary
Blake Foster
CVA · Certified Valuation Analyst
Heather schmidt
CEPA · M&A Advisor
Testimonials
In their own words — business owners, buyers, and referral partners who've worked with Exit Equity.
We were so pleased with not only the support and offers that were presented by your group, but the support and backing we had all through the purchase program and sale program. Not only did we feel the importance that your group put behind every step, but we enjoyed your company, sense of humor and help in celebrating when the sale was complete. Thank you again for all of your help and after-market support.
“We recently sold our business through Exit Equity and the experience was smooth and carefully coordinated and documented. The transaction included a manufacturing operation and real estate and required careful attention to detail and a focus on the final objective. We had a great experience and can recommend Exit Equity. Loving retirement!”
We were so pleased with not only the support and offers that were presented by your group, but the support and backing we had all through the purchase program and sale program. Not only did we feel the importance that your group put behind every step, but we enjoyed your company, sense of humor and help in celebrating when the sale was complete. Thank you again for all of your help and after-market support.
“We recently sold our business through Exit Equity and the experience was smooth and carefully coordinated and documented. The transaction included a manufacturing operation and real estate and required careful attention to detail and a focus on the final objective. We had a great experience and can recommend Exit Equity. Loving retirement!”
We were so pleased with not only the support and offers that were presented by your group, but the support and backing we had all through the purchase program and sale program. Not only did we feel the importance that your group put behind every step, but we enjoyed your company, sense of humor and help in celebrating when the sale was complete. Thank you again for all of your help and after-market support.
“We recently sold our business through Exit Equity and the experience was smooth and carefully coordinated and documented. The transaction included a manufacturing operation and real estate and required careful attention to detail and a focus on the final objective. We had a great experience and can recommend Exit Equity. Loving retirement!”
What Happens Next
Free and confidential consultation to determine what type of valuation is needed, price and process.
Provide needed information to analyst - both quantitative and qualitative.
1-2 informational meetings to understand your business and value drivers.
Meet with your EEQ Expert for a 60-90 minute valuation presentation - a time to ask questions, identify actions and next steps based off your goals.
FAQ
We've guided hundreds of business owners through the sale process. Here are the questions we hear most often at the start of a conversation.
We value e-commerce brands, software and SaaS companies, IT managed service providers, value added resellers, hardware businesses and other technology-enabled companies in the lower middle market.
Recurring revenue, scalability and high gross margins make technology companies attractive to buyers, which often supports higher EBITDA or revenue multiples than traditional businesses.
Early stage companies have limited financial history and their value depends heavily on future growth assumptions, so the valuation leans more on market data, key metrics and a realistic growth forecast.
The cost depends on the type of valuation you need and the complexity of your business. During a free discovery call we will recommend the right option and give you a clear, fixed quote before any work begins.
Free tools rely on generic multiples and limited data. Our valuations are prepared by credentialed analysts who review your financials, normalize earnings, study comparable transactions and deliver a defensible report you can act on.
We apply market, income and asset-based approaches and weight them according to your industry, size and the purpose of the valuation.
A written report with the concluded value, the methodology used, normalized financials, comparable transactions and the key value drivers that help or hurt your business value.
Typically three to five years of financial statements and tax returns, a current interim statement, details on owner compensation and add-backs, and an overview of customers, staff and operations.
We offer a Broker’s Opinion of Value for planning and pricing decisions, and a Certified Business Valuation prepared by our NACVA credentialed analysts for tax, legal and compliance purposes.
