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Methods to value a small software company

How should the valuation for a small software company in the healthcare industry be determined? Steadily increasing revenue for the past decade ($900,000 annually), software is licensed annually to clients, no debt, all employees are contractors and work remotely, so no benefits expenses or lease expenses. Profit margin is around 40%-50%. Is it typical to use a multiple of revenue or net income for a valuation? What period of time are investors usually looking to make back their investment? 3-5 years? Thanks.

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