Start with adjusted profit
Valuation starts from EBITDA, adjusted to remove one-off and personal costs and to add a market-rate salary for the owner if they are not paid one. This is the profit a buyer would actually inherit.
What raises the multiple
Recurring retainer revenue, multi-year client relationships, a spread of clients across sectors, documented processes, a capable second tier of management, and growth in the last two years.
What lowers the multiple
Project-only revenue, one or two clients making up most income, the founder holding every relationship, declining revenue, or contracts that end on change of ownership.
