Two experts speaking at the TMPAA Eighth Annual Summit last month gave estimates of going rates for program administrators selling their businesses.
o Chris Lalonde, a principal at Century Capital Management in Boston, said four- to six-times EBITDA is typical for private equity firm all-cash transactions.
o Art Seifert, president of Dallas-based U.S. Risk Underwriters, added that sellers can expect higher multiples for "bolt-on" businesses, ranging from six- to eight-times EBITDA–because the buyer is only purchasing the book of business, not the firm's management.
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