Business Valuation Articles and Tools

Typically, when a business reaches approximately $10 million in revenue, it can comfortably afford a full-time CFO. Until then, hiring a Fractional CFO is a way to access high-level financial support without paying a full-time officer.

A common method used to calculate business value involves applying a multiple to the company’s EBITDA. And while business owners who intend to sell their business have many options to increase the transaction multiple, one way to unlock value using this calculation is to identify other, non-customary “add-backs” to increase EBITDA.

At some point during a company’s existence, it’s very likely a business owner will need a business valuation. Regardless of the reason, it is very important to understand how business valuations are conducted.

When all other factors are equal, the presence of a significant concentration among customers, suppliers, and/or employees results in a lower business value than might otherwise be expected due to the underlying inherent risks associated with any or all of these concentrations.

Many business owners are uncertain about how to establish a value for their business, regardless of its stage of development. How to value ideas, start-ups and mature businesses differ greatly. Learn more.

Business owners who address the three hallmarks of a valuable business are very likely to have more options for exit and attract multiple buyers.