Multiple

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…


What is MY business Worth?

Business owners thinking about selling their business often ask us, “What is my business worth?” For many business owners, the answer is an unpleasant surprise, as the value is much lower than they think. Understanding what impacts value and building a strategy and action plan to make the changes that increase that value can mean the difference between a successful and disappointing outcome.…


Exit vision

What’s your exit vision? When it comes to selling their business, many owners simply continue with day-to-day management until they wake up one morning and say, “Hang on. I need to sell my business.” But by then it’s too late. We always strongly advise clients that they need an exit vision to maximise sale value. While much of this vision relates to numbers and finances, there’s also more to it.…