Learnings From the Field

The Long Explanation of Pricing in Call Center / BPO M&A

Each call center will have it’s own unique DNA, so this formula explanation is not a blanket for all centers but rather a general overview of how price is determined. Buyers are looking for balanced, heal- thy businesses that will grow over the short term (3-5 years), and allow them to position for another exit down the road. There are buyers for underperforming call centers as well, although those formulas are less able to be described in short as they are more situational and either relationship, geography, or client based in nature.

Of all the characteristics and metrics a Buyer will review when determining a purchase price, EBITDA (Earnings before Interest, Taxes, Depreciation & Amortization) is perhaps the most important.

All businesses sell. Whether it’s by retirement, generational transfers, or in good times or bad, 100% of business entities will change hands during or shortly after the lifetime of the owner. Those owners who plan and strategize for 

an exit are far more likely to achieve higher value and leave the business in their preferred place than those with no plan.

In this blog series, you will discover what’s in a solid exit plan and how to begin writing it. Also, we will discuss the types of exits, types of buyers, and how maximum value is achieved. The last part of the series will be devoted to a Q&A from your input, so be sure to reply with any questions or comments you may have.