Monday, October 28, 2013

When Growth Decreases Your Company's Value | Inc.com

"I’ve just returned from the Inc. 5000 conference in Washington D.C. where I had the opportunity to be part of a panel about exit strategies. The Inc. 5000 celebrates the fastest-growing companies in America, and the enthusiasm in the conference center was impressive. Although these companies deserve our recognition, I left the event thinking that perhaps some attendees were focused on top line revenue growth at the expense of the value of their companies.

At Sellability Score.com, we’ve just analyzed the data from business owners who have received their Sellability Score in the last five quarters. We looked at 5,364 businesses and found that the average company that had received an overture from an acquirer was offered 3.5 times their pre-tax profit. When we isolated the businesses that had a historical growth rate of 20 percent or greater, the multiple offered improved to 4.3 times pre-tax profit, or about 20 percent more than their slower growth counterparts."

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When Growth Decreases Your Company's Value | Inc.com:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.

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