2018 saw the introduction of the HURST Corporate Finance workshops. These workshops are designed for business owners considering their exit and aim to provide a full overview of what to expect from a business sale and how to prepare to their business for sale.
The second of these will cover everything you need to know about how businesses are valued. During the last workshop we discussed that most businesses are valued on a multiple of EBITDA. We also discussed that businesses with the following characteristics often command higher EBITDA multiples, these characteristics include:
- Niche and defensible market position,
- Strategically important to the acquirer
- Demonstrated historical growth
- Scalable potential
- Will deliver significant synergies to the buyer
But what lies beyond EBTDA, well there are a number of tools and techniques that can be used when formally valuing a business and the process should be conducted by a specialist advisor to ensure independence and validity. HURST will provide you with an overview of these techniques and methods so that there are less “surprises” during a deal process.