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.
If you are planning to sell your business or are considering your offer to buy a business, it makes good sense to obtain an independent appraisal of the business first. A business valuation is not a cost - it is an investment. Business valuations provide invaluable insight into the real value of the business and enable buyers and sellers to better position themselves for the transaction and negotiate with confidence - knowledge is power! What is business value? Theoretically,
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
Microsoft’s recent $26.2 billion acquisition of LinkedIn provides an illustrative example of a strategic acquisition – the type of sale that usually garners the most gain for the acquired company’s shareholders. You may be wondering what a billion-dollar acquisition has to do with your business, but the very same reasons a strategic acquirer buys a $26 billion business holds true for the acquisition of a $2 million company. The financial vs. strategic buyer A financial buyer