Determining the price of your business is more ‘art’ than ‘science’.  Although coming up with a price based on a multiple of EBITDA is standard.  There are many other areas to be aware of that impact pricing, to a lesser degree. 

Who is the buyer—strategic or professional (Venture Capital, Private Equity, Investment Banker).  Strategic buyers look for synergies to their existing business.  All buyers, however, consider the following factors when determining pricing:

 

  • Profitability
  • Strategic fit
  • Financial history/trends
  • Client concentration
  • Costs/overhead
  • Debt
  • Location
  • Macro trends–economy

For more information or to schedule an appt:

MICHAEL KLINGER

LANGUAGE TRANSACTIONS LLC

525 MASSACHUSETTS AVENUE

SUITE 203, ACTON MA 01720

MKLINGER@LANGUAGETRANSACTIONS.COM

https://languagetransactions.com/

PHONE: 978-429-8014

FAX: 978-429-0671