Posts Categorized: Business Valuation

Why VEEV Vodka Went for More Than 7 Times Revenue

Courtney Reum left Goldman Sachs in 2007 to start a Vodka business. He built VEEV up to more than $10 million in annual sales before he sold the company for more than seven times revenue. Reum has gone on to start and invest in a number of businesses through his M13 venture firm, and in this episode you will… Read more »

Your Company’s Undocumented Worth

The valuation is a major factor that influences the overall selling price of the property. Business appraisals are based upon a multitude of criteria and indisputable records such as comparables, projections, discount rates, EBITDA multiples, and more. While the appraiser may have all the information he or she needs, the business elements might be overlooked…. Read more »

What Are Your Company’s Weaknesses?

Every company has weaknesses; the trick is to fix them. There is a saying that the test of a good company president or CEO is what happens to the company when he or she leaves. Some companies–on paper–may look the same, but one company may be much more valuable due to weaknesses in the other… Read more »

Work “On, Not In” Your Business

For the better part of 40 years, Michael Gerber has been encouraging business owners to work “on, not in” their business. In this interview of Built to Sell Radio, you’ll hear some of Gerber’s sage advice and get a summary of his new book, Beyond The E-Myth, including: – Why every company should be built as a… Read more »

Inside the Mind of a Private Equity Investor

Frank Cottle led an investor group to buy Hi-Mark Software for 10 times EBITDA.  Cottle then sold a chunk for 15 times and ultimately sold his last tranche of equity for more than 16 times EBITDA to Lufthansa.  In this interview, you’ll get deep inside the mind of a private equity buyer and learn: – three… Read more »

How One Pivot Doubled The Value of This Business

James Garvey and his partner grew Objective Loyalty from a standing start in 2005 to $2.5 million in EBITDA before they decided to sell their email marketing platform.  Garvey’s investment banker spent six months shopping the deal without a single offer. Then Garvey decided to switch tactics and approach the strategic partners who already knew… Read more »

About Multiples of Revenue

People talk about multiples of revenue. Sure, one can take any price and divide it by the annual revenue of a business and obtain a revenue multiple. A $1 million sale price divided by $750,000 in annual revenue equals a 1.33 revenue multiple. Right? Nothing inherently right or wrong in talking about multiples of revenue…. Read more »

Business Valuation: Do the Financials Tell the Whole Story?

Many experts say no! These experts believe that only half of the business valuation should be based on the financials (the number-crunching), with the other half of the business valuation based on non-financial information (the subjective factors). What subjective factors are they referring to?