[sarchertech]

I’m not a plumber but from spending 20 minutes looking into it, it looks like the primary thing that changes the value multiple is how involved the owner is in the business (your key person risk). 5x was also on the high side of the multiples I saw.

The thing to keep in mind though is we’re talking small business, once you get to $10 million EBITA, you’re probably talking $50-$200 million in revenue and 200-500 employees. Thats firmly into mid sized business territory and I think revenue growth would be the or primary driver of the multiple.

From your source a 10x multiple would require very high revenue growth. That makes sense because you can get 10% average return with index funds, so you need to significantly beat that ROI.