Key Takeaways:
Takeaway 1: Take the time to understand the factors that drive the valuation of a company.
Takeaway 2: Understand what dictates the multiplier attributed to the valuation of a company to answer the quesiton, "What is my business worth?"
Takeaway 3: Companies in industries that are in high demand will command higher multiples vs. companies in industries in out-of-favor sectors. Healthcare, education, technology and business support & service are high demand. Oil & gas and construction are low demand.
Takeaway 4: Companies with high potential growth rates will command a higher multiples. A business plan is the best tool to project and defend plans for future growth.
Takeaway 5: The buyer's perceived risk plays a large part in what they are willing to value the business. Talk to me about the 15 risk factors that can devalue your business.
Takeaway 6: Try to find strategic buyers. Strategic buyers generally look for larger projects, $1M+ EBITDA, that are a great fit for their existing customer base, product line, or an untapped geographical region, i.e., they believe they can easily scale up revenues while simultaneously streamlining back office support.
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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com. To search for Florida Businesses for Sale: CLICK HERE
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