What you'll learn
The different valuation methodologies and which one a buyer will likely use
What EBITDA actually is and why it's so different from the profit on your P&L
The specific business factors that create valuation premiums or discounts
How to track the metrics that drive valuation so you can improve your number intentionally
Why optimising for valuation as you build your business changes every decision you make
Preview
Most business owners don't know what their business is worth. They have a gut feeling based on revenue or profit, but they don't understand how a buyer would actually calculate a number. And they don't understand what specific factors move that number up or down.
This matters whether you plan to exit or not. Understanding your valuation isn't just about knowing what someone might pay for your business. It's about understanding the factors that make your business more or less valuable, because those same factors are what make your business more or less sustainable, more or less scalable, more or less dependent on you.
Businesses are typically valued on a multiple of EBITDA, earnings before interest, taxes, depreciation, and amortization. But that's not the same as the profit on your P&L. Understanding the difference, and understanding what drives the multiple a buyer will pay, is what allows you to build a more valuable business. This white paper walks you through the methodology.
Download the full white paper
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About the author
Valont
Business capability firm for Australian SMEs
Articles published under the Valont name are written and reviewed by the Valont team, the specialists who do this work for Australian SMEs every day across Finance, People, Operations and Growth. Where a piece has an individual author, it is credited to them by name.
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