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What Sellers Should Ask About Instead of Multiples - M&A Playbook

Ultimately, I think sellers come to us and they want to know what kind of multiple they can get to their business. And the question is really well-intentioned, what I think would be better for sellers to ask is: How do I position my business to get the most value or to achieve my strategic objective?

So for example, instead of shooting for a target multiple, the earlier we can work with firms to get them ready for a transaction the better, because we can use our data and leverage our data to help these practices select KPIs to get them from where they are now to where they want to be when they transact. So we can look at things like:

  • How many new clients are you bringing in on an annual basis?
  • What is the size of those clients?
  • How are your profit margins?
  • How much are you spending on advertising and marketing? (Probably not enough.)
  • How much are you spending on people?
  • How much are you spending on technology?

And this allows us to really harness the power of data to provide actionable insights to these businesses, to get them where they want to be from a transactions perspective.

But it has nothing to do with the multiple. Ultimately, it has everything to do with getting the business ready to sell in an optimal state.

Let's talk about what we can do to get YOUR firm in optimal shape to do whatever you want to do next. Give us a call at 800.934.3303 or click the button below.



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