The value of a business is, to a large extent dependent on its numbers – sales, gross profit, profit, and derivatives of those elements business owners will be aware of.
Most owners know that the real value is related by way of some formulas using those numbers in conjunction with multipliers, discounts and limits. But what are the latter all about? How are they decided?
In the spirit of all things graphic, as one does in the 21st century – apparently:
This short video illustrates very simply why strong businesses and weak businesses have different multipliers.
In the near future I will get more specific as to what exactly makes those differences, and the mechanisms behind them.