How a Small IT Firm Hit 40x EBITDA with Recurring Contracts

In this episode of The Buyer & Seller Podcast, Lucas and Luna break down the remarkable sale of a 12-person managed IT services provider in Austin that sold for 40 times EBITDA. The key? Long-term, scalable contracts with built-in price escalation clauses and a client retention rate above 95 percent. Lucas walks through the specific financial structures, the role of the three-year client commitment, and the due diligence that made buyers comfortable with the multiple. Listeners learn exactly how recurring revenue—even in a crowded IT space—can command premiums usually reserved for software companies. If you're a small business owner thinking about an exit, this is the model to understand. #ITServices #MSP #BusinessExit #RecurringRevenue #EBITDA #BusinessValuation #AustinBusiness #PrivateSale #BusinessBrokers #SmallBusinessExit #TechServices #ContractEscalation #ServiceAgreements #ClientRetention #DueDiligence #BusinessPodcast #FexingoBusiness #MergersAndAcquisitions Keep every episode free: buymeacoffee.com/fexingo