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Business Valuation Multiples Explained💰 -Sponsored by Flow Digital and Pipedrive
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They may look at an average over the
past 2 years, 3 years, last 12 months,
whatever they look at.
And they pay you a multiple
>> of that number.
>> of that number. Depending on the
industry, depending on what it is that
you're selling, value your company has,
they may pay three times, six times, 10
times, 15 times. It all depends on and
the way potential buyer looks at it is
if it's say a hedge fund that's has
capital and they want to make
investments.
>> And they need to deploy it.
>> And they need to deploy it. So, they
have a model where they have to have a
certain amount of return on what they're
buying what they're investing. So, they
gave a multiple where they know that a
business is going to be generating over
the next five years X profit, which is
going to give them the return that they
want.
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