We are often asked about what multiples should be used for a company in a particular industry to determine value. The reality is that the sale price in a transaction has more to do with the characteristics of the individual company than what industry it is in. If I told you a company published a magazine and operated a website for parent/teacher organizations, your first thought might be it’s a “nice business” but the multiple can’t be that high. But if I told you they have relationships with nearly 40,000 schools and 1,000,000 teachers, it gets more interesting. Next I tell you they generate revenue from major consumer product manufacturers interested in connecting with parents and teachers. The additional facts make a nice business into an exciting business with multiple growth opportunities for a range of buyers. The details of the opportunity change the multiple. No one multiple fits every business in an industry, you have to know the story of the individual business to understand value.Read More about the Success Story regarding this particular client, ALPS.Click Here to Email Jeff @ Beacon
