Defending 12x EBITDA Valuation Multiples to Private Equity Buyers
Private equity buyers try to grind down M&A valuations using industry medians. Here is how investment bankers defend premium EBITDA multiples based on net revenue retention.
Amit KasliwalCEO & Founder, Dehurdle
January 12, 20254 min read
The Premium Multiple Defense Script
Recommended Spoken Script
"While commoditized IT services trade at 7x EBITDA, our platform generates 94% recurring software revenue with 128% Net Revenue Retention and 42% gross margins. In comparable recent transactions with identical cohort durability, valuations closed between 11.5x and 13.5x EBITDA."
The 2-Minute Practice Drill
2-Minute Spoken Drill
The 2-Minute Practice Drill
Practice M&A valuation negotiations in Dehurdle.