The Sell Side Masterclass for Tech Services Founders: Valuation Drivers

About this episode

The episode discusses valuation drivers for IT services firms, focusing on revenue quality and factors influencing premium valuations.

In Part 3 of the Shoot the Moon Masterclass series, Mike, Ryan, and Matt break down how valuation really works for IT services firms—why “the multiple” isn’t the same thing as valuation, and why buyers price future performance and confidence in cash flows. They cover revenue quality (recurring revenue, churn, customer concentration), adjusted EBITDA and clean add-backs, common valuation killers, and what owners can do over 12–24 months to earn a premium.

People in this episode

Host: Mike

Topics covered

• valuation
• IT services
• recurring revenue
• churn
• customer concentration
• adjusted EBITDA
• valuation killers

Keywords

• valuation drivers
• future performance
• cash flows

Mentioned in this episode

Books & works: Shoot the Moon Masterclass

More episodes of Shoot the Moon with Revenue Rocket

• The Sell Side Masterclass for Tech Services Founders: What Not to Do · April 14, 2026 · 29 min
• The Sell Side Masterclass for Tech Services Founders: What Happens After the Deal Closes · March 25, 2026 · 23 min
• The Sell Side Masterclass for Tech Services Founders: Definitive Agreements and the Final Stretch · March 10, 2026 · 37 min
• The Sell Side Masterclass for Tech Services Founders: Due Diligence · February 24, 2026 · 26 min
• The Sell Side Masterclass for Tech Services Founders: Deal Structure 101 · February 11, 2026 · 37 min
• The Sell Side Masterclass for Tech Services Founders: Finding the Right Buyer · February 2, 2026 · 37 min