Want to know what your business is worth? Check out this quarters summary of private deals compiled by Pratts Stats. The free report provides general trend information on valuation multiples and profit margins for transactions so if your thinking about selling your business this year it is a must read! To download the full report click here When valuing a business, selection of the correct multiplier is critical to achieving an accurate well founded and justifiable valuation.
When valuing a business selection of the correct multiplier is critical to achieving an accurate well founded and justifiable valuation. Some of the more commonly used acronyms for valuation multipliers include; Sellers Discretionary Earnings (SDE); Net Sales; Gross Profit Margins; EBIT; and EBITDA; All multipliers are useful in different situations although it is beyond the scope of this article to detail there best uses. Often when selecting a multiple it is useful to evalu