Business Valuation Multiples Explained💰 -Sponsored by Flow Digital and Pipedrive

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. >> [music]