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The 7.6x Enterprise Value Gap in Business Services


Two business services companies can reach the same revenue scale and still command radically different valuations.

At $300 million in revenue, a top-quartile operator with a 22.6% EBITDA margin and a 16x valuation multiple produces an estimated enterprise value of $1.08 billion. A bottom-quartile operator at the same revenue level, with a 5.9% EBITDA margin and an 8x multiple, produces an estimated enterprise value of $142 million.

The gap is roughly $940 million.

That is a 7.6x difference in enterprise value between companies operating in the same sector on the same revenue scale. The difference is not explained by size. It reflects the quality of the operating model underneath that revenue and, in many cases, the sequence in which leaders address coverage problems.

July 22, 2026 15 min read
The 7.6x Enterprise Value Gap in Business Services

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