Enterprise Valuation
A clear view of whatthe business is worth,and why
Valuation is not a single multiple. Cogent assesses how an IT services business earns, retains and scales its revenue, then explains the range a buyer would credibly support today.
Position
How the engagement works
Owners are often quoted a multiple with no explanation of what drives it. We do the opposite: the analysis shows which parts of the business raise value, which suppress it, and what is fixable before a process begins.
The output is useful whether you intend to sell in twelve months or ten years. Most owners use it to prioritize the two or three changes that matter most.
Scope of work
What the analysis examines
01
Financial Analysis
Recast earnings, normalize owner compensation and separate one time items from run rate performance.
02
Recurring Revenue Quality
Contract terms, renewal behavior, resale pass through and true managed services margin, examined separately.
03
Customer Concentration
Revenue distribution, contract length and relationship depth across the top accounts.
04
Growth Profile
Organic growth, seat expansion, pricing history and the durability of the pipeline.
05
Profitability
Gross margin by service line, technician utilization and overhead structure against sector norms.
06
Market Comparisons
Where the business sits against recent IT services transactions of comparable size and mix.
07
Transaction Readiness
The specific items that would slow diligence or reduce proceeds, ranked by impact.
| Ref | Component | What is examined |
|---|---|---|
| 01 | Financial Analysis | Recast earnings, normalize owner compensation and separate one time items from run rate performance. |
| 02 | Recurring Revenue Quality | Contract terms, renewal behavior, resale pass through and true managed services margin, examined separately. |
| 03 | Customer Concentration | Revenue distribution, contract length and relationship depth across the top accounts. |
| 04 | Growth Profile | Organic growth, seat expansion, pricing history and the durability of the pipeline. |
| 05 | Profitability | Gross margin by service line, technician utilization and overhead structure against sector norms. |
| 06 | Market Comparisons | Where the business sits against recent IT services transactions of comparable size and mix. |
| 07 | Transaction Readiness | The specific items that would slow diligence or reduce proceeds, ranked by impact. |
Valuation is not a single multiple.
Who requests a valuation
Owners planning an exit in the next one to five years
Partners restructuring ownership
Acquirers testing a target's asking price
Owners planning succession or estate matters
Leaders benchmarking against the market
Next step
Considering yournext transaction?
Speak with a Cogent advisor about your acquisition, exit, merger or valuation goals.