Free Whitepaper

The Multiple Is a Scorecard

What the multiple actually measures, and how to move it. The IT services founder's 24-month exit playbook, written from the buyer's side of the table.

🇬🇧 Whitepaper in English | 32 pages | PDF
Jörn Petereit
Jörn Petereit
Managing Partner, IT Capital Partners
The Multiple Is a Scorecard Whitepaper
32 pages · PDF · Free download
545k
German SMEs seeking succession by 2029
6.8–8.5x
The DACH small-cap band today
+€6.4m
24 months of preparation, illustrative
40
Points on the exit readiness scorecard

Worth is an output, not a question.

The founder's view of the two years before a transaction, set against the market data we underwrite as buyers: what the multiple actually measures, and how to move it.

01
⚖️

The Valuation Split, and Why It Exists

Small companies and platforms are priced in different worlds. The DACH bands, the distribution behind them, and why private equity pays a median 13.7x while strategics pay 6.3x. Scale is the visible variable; predictability is what buyers pay for.

02
🛠️

The Five Levers

The four levers buyers have priced for twenty years, recurring revenue, concentration, key-person independence, diligence-ready operations, and the fifth that 2026 added: AI proof, not AI claims.

03
🧮

The Math of Preparation

An illustrative value bridge: EUR 10.8m today, EUR 12.6m after two years of business as usual, above EUR 17m prepared. The multiple you earn is worth as much as the EBITDA you add.

04
📅

The 24-Month Plan

Four phases, in sequence: baseline and decide, structural work, evidence, readiness and choice. Buyers do not pay for plans; they pay for two closed financial years that prove the plan worked.

05
⚠️

Where Deals Die

Four preparation failures behind most repriced and broken deals: the missed budget, numbers that shift in diligence, the terminable key contract, the undecided founder. All of them optional.

06
🤝

Process or Partner

Two legitimate routes to a transaction, what each optimises for, and the second exit: sell part now, build the platform together, and sell again at the platform's grade. As its base, or alongside it.

Bonus: The Exit Readiness Scorecard

Twenty statements, five dimensions, forty points. Score yourself before a buyer does, and read which conversation you are actually ready for: process, partner, or build first.

40

The Five Levers

What buyers actually price, and the bar to clear on each. Every lever is a work programme, not a diligence answer.

01
Contracted Recurring Revenue
A majority of revenue contracted; managed services carry the largest gross-profit share.
02
Customer Diversification
No client above 20 percent of revenue; the top five together below 50.
03
Key-Person Independence
The three-week founder-absence test, passed. Your value rises as you become replaceable.
04
Diligence-Ready Operations
Ten-day closes, the contract audit done, a documented delivery standard.
05
AI Proof, Not AI Claims
AI measurable in unit economics: cost per ticket, utilisation, the margin bridge.

Levers 1 to 4 are the four levers from Buy and Build, seen from the seller's chair. Lever 5 is what 2026 added, and right now it moves valuations faster than any of the others.

Written for three readers.

The founder who will, sooner or later, sit across from a buyer. The adviser who prepares that meeting. And the investor on the other side of the table. One idea runs through every chapter: the multiple is not a market price you receive, it is a scorecard of the risks a buyer has to underwrite, and it is under your control if you start early enough.

  • Founders of IT services, Systemhaus, and MSP businesses 24+ months from a possible exit
  • Owners in succession situations weighing process, partner, or a second exit
  • M&A advisers who want the current DACH market data and the failure patterns
  • PE investors and family offices underwriting IT services companies
  • Leadership teams tasked with making a company diligence-ready

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Ready to find out what your multiple is measuring?

Get the founder's 24-month exit playbook: the market data we underwrite as buyers, the five levers, the math of preparation, and the scorecard to run with your leadership team.

The five levers buyers price
The illustrative EUR 6.4m value bridge
The 24-month plan, four phases
40-point exit readiness scorecard
🇬🇧 Whitepaper is written in English.

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This paper completes a set of three. Companion papers: Buy and Build in IT Services, the same market from the buyer's chair, and The AI-Native IT Services Company, the maturity ladder behind Lever 5.

All Whitepapers →
Jörn Petereit

Jörn Petereit

Managing Partner, IT Capital Partners

Previously COO of Cloudflight, scaling it from 280 to 1,000 people across four countries to a €400m exit to Partners Group. Former Bitkom board member. Now building tecRacer as IT Capital's first platform investment. He has sat in every chair at this table: the operator's, the seller's, and the buyer's.

Learn more about Jörn