Multiple Choice – There’s more than one way to value your business

Multiple Choice – There’s more than one way to value your business

When working with clients, we begin by discussing their initiatives to increase valuation before sale. Understandably owners tend to focus on the ‘P’ aspect of V = P x M because they know how to influence profit.

Clients often say, ‘If I increase profits then I’ll get my valuation up.’ While this is true, it misses the other valuation lever – the multiple.