Month: July 2016

Debunking the Valuation Myth: The Multiple is Fixed

As discussed in a prior article (click here), typically, business owners and CEOs think of the value of their business as the annual profit of the business multiplied by a multiple as show below. Value = Profit X Multiple A common belief is that the multiple in their industry is fixed and does not change.  This is just not true.  Let me explain. Business Owners Know the Industry Multiple: Often…