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.