Business valuation determines economic worth using revenue multiples, EBITDA multiples, discounted cash flow, or asset-based approaches. Most transactions use a blend of methods.
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Pro Tip
Buyers discount heavily for customer concentration. If one client exceeds 20% of revenue, expect a lower multiple.
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Did You Know?
The average small business sells for 2-3x EBITDA. SaaS businesses routinely sell for 5-15x ARR.
References
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