Outsourcing/BPO Valuation: Multiples for Philippine Call Centers and BPOs
Outsourcing/BPO Valuation: Multiples for Philippine Call Centers and BPOs
What are the typical valuation multiples (based on headcount or revenue) currently being applied to established BPO and call center businesses in the Philippines?
3 Answers
BPO and call center businesses in the Philippines are typically valued at 3–6x EBITDA or 1.5–2x annual revenue, depending on profitability, client contracts, and growth prospects.
For established BPO and call center businesses in the Philippines, buyers usually look at industry norms rather than something tied strictly to headcount. The most common benchmark is an EBITDA multiple, and for profitable call center/BPO firms you’ll often see deals roughly in the 3× to 6× EBITDA range, with stronger contracts, international clients or niche services lifting values toward the higher end.
For established BPO and call‑center businesses (including in the Philippines), typical valuation multiples used in transactions are around 3–6× annual EBITDA for profitable, contract‑backed operations, with stronger performers (long‑term international contracts or specialized services) closer to the upper end. Revenue multiples for smaller or lower‑margin players often range around 1–2× annual revenue, while tech‑led, high‑growth assets can attract higher comps in broader BPO M&A markets. These benchmarks help gauge fair value but vary by scale, client mix, and contract stability.