A more important question is ‘who wants to buy it, and how badly?’ Without that, discussions on value are meaningless. Consulting businesses are not generally bought as a commodity or cash-flow stream, but to enable the buyer to achieve an objective that they cannot achieve as easily without the acquisition. Once you know who wants to buy and why, you can then start to look at growth and profitability as the main drivers of price.
The Equiteq Annual Report on Consulting M&A gives a good view of average multiples, but of course, your business will not be ‘average’, it will be above or below. The best approach is to run our valuation workshop to understand if you are ‘sellable’ and if you are, the value range you might expect now and in the future.