Managed-services and recurring share
A book of multi-year managed-services contracts prices at the top of the band; a project shop re-winning its revenue every quarter prices at the bottom, on the same EBITDA.
Valuation multiples · UAE
What is an IT services company worth in the UAE?
IT and computer services SMEs transact around 5–8× EBITDA. The spread between the bottom and the top of that band is mostly one question: how much of your revenue is contracted and recurring versus re-won project by project?
The multiple band we’d apply
The headline basis is EBITDA. Buyers will normalise it first — market-rate salaries for working owners, one-off projects stripped out, related-party costs repriced — so the multiple attaches to earnings that survive diligence, not the management-accounts number.
- EV / EBITDA
- 5–8×
- EV / Revenue (cross-check)
- 0.8–1.6×
These are SME transaction bands from global deal data — open-source GCC/MENA SME comps are too thin to quote as a separate series, so treat the range as the starting grid, not a Gulf-specific promise. They are not public-market multiples: a quoted comparable carries a size and illiquidity discount of roughly 15–35% before it applies to a private SME. Size then moves you within the band — larger, cleaner businesses clear the top; smaller, owner-dependent ones price near the bottom.
What moves you inside the band
Client concentration
One client above ~25% of revenue is a discount conversation; two is a structure conversation (earn-outs, holdbacks). Concentration is the most common multiple-killer we see in IT services.
Certified team retention
In this sector the engineers are the asset. Vendor certifications held by the company (not one individual), documented delivery processes, and retention history all transfer value to a buyer.
Contract quality and length
Assignable contracts with real notice periods and indexation survive a sale. Handshake renewals and contracts that terminate on change of control quietly cap your multiple.
A multiple prices the enterprise — you bank the equity
Multiplying earnings by a band produces an enterprise value (EV). What a sale actually puts in your pocket is equity value: EV minus debt and debt-like items (shareholder loans, end-of-service liabilities, overdue payables), plus genuinely surplus cash, adjusted for working capital. Two businesses with identical EV can hand their owners very different proceeds once that bridge is built — which is why our calculator returns both numbers, not just the headline.
Frequently asked questions
What EBITDA multiple do IT services companies sell for in the UAE?
SME transactions cluster around 5–8× EBITDA (global SME bands; open GCC comps are too thin to quote separately). Recurring managed-services revenue, low client concentration and a team that stays are what separate the top of that band from the bottom.
Why did a buyer quote me less than my EBITDA times eight?
Usually normalisation: owner salaries below market, one-off project windfalls, or related-party rent get adjusted out, and the multiple attaches to the lower, defensible EBITDA. The fix is to normalise your own numbers before going to market — our calculator starts there.
Does government or enterprise client mix change the multiple?
Quality of the contract matters more than the logo. Long-dated, assignable contracts with creditworthy counterparties support the top of the band; prestigious logos on terminable purchase orders do not.
Get your range in five minutes
The free calculator applies these same bands to your numbers — the earnings basis chosen by company size, the position inside the band set by quality — and returns an enterprise-value range with the EV→equity bridge, not a single flattering point.
Before you anchor on a number
Indicative only. This figure is an automated, indicative estimate generated from the limited information you provided and from general market data for comparable companies. It is not a valuation, an appraisal, a fairness opinion, or financial, investment, legal, tax, or accounting advice, and it is not an offer or a solicitation to buy or sell any business or security. Every business is different; an indicative range produced from sector averages can differ materially from the price an actual buyer or investor would pay.
No reliance; subject to diligence. Fiducia Adamantina gives no representation or warranty as to the accuracy or completeness of this estimate and accepts no liability for any decision taken in reliance on it. Any real valuation depends on full financial and legal due diligence, the specific facts of your business, and prevailing market conditions at the time of a transaction. You should not act, or refrain from acting, on the basis of this output alone. For a defensible assessment, speak to us directly.