This post is about one of my 45-second pitches at my BNI Chapter, BNI City Business. You can read the introduction to this collection here.
Friday May 19, 2023. When valuing a business, size really does matter. It seems obvious that bigger firms are worth more than small firms (all else being equal). But more importantly, the bigger the firm, the larger the multiplier. Why? Quite simply, because larger firms generally mean lower risk, and that multiplier is impacted by risk.
The growth imperative: growing your company revenues before selling, and showing strong growth while you are on the market gives confidence to would-be buyers. Flat growth or a shrinking top line (even if profits are maintained) will raise concerns.