What Should My Company look like to Command a Premium Offer

The podcast discusses how tech-enabled services companies can secure premium offers during mergers and acquisitions. Key insights include: Valuation Factors:Deals are typically valued at 6-11x trailing 12-month EBITDAGrowth rates of 15-25% are crucialEBITDA margins above 15% are idealRecurring revenue above 60-70% is attractive to buyers   Critical Elements for Premium Offers: 1. Organic GrowthConsistent year-over-year growthDemonstrated sales and marketing capabilitiesStrong leadership team 2. ProfitabilityHigh EBITDA marginsEfficient operational processesRule of 45 (growth % + profit % ≈ 45) 3. Market PositioningVerticalized focusBroad geographic reachSpecialized service offerings 4. Customer RelationshipsMulti-year contractsLow customer churnRepeat businessStrong customer retention metrics 5. Deal StructureFlexibility in owner transitionBalanced risk allocationPotential for earn-outs or seller notes The podcast emphasizes working with M&A advisors like Revenue Rocket to optimize these factors and prepare a company for a premium acquisition offer.   RELATED EPISODES: Episode 166: Understanding Revenue Models and How They Impact Valuations. Listen now >> Episode 145: Why Sellers with Vertical Market Approaches Earn Premium Valuations. Listen now >> Recurring Revenue Episode 19: The Rule of 45. Listen now >> Check out our podcast playlist on Organic Growth Strategy >>   Listen to Shoot the Moon on Apple Podcasts or Spotify. Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.