TRANSITION TALK

Using Multiples for Value [INFOGRAPHIC]

Posted by FP Transitions on Dec 19, 2016 9:52:07 AM

Everyone seems to want the easy (and free) way to determine value, but is a multiple of value really a good choice? Here's a hint: no, no it's not.

The infographic below uses real data from the FP Transitions 2015/16 Valuation Database to illustrate why applying a multiple to your revenue is a terrible way to determine the value of your practice, and why you're likely to end up losing more money than you avoided paying up front.

Click to enlarge infographic.

multiplesINFOGRAPHIC_web.jpg

 

Click to enlarge infographic.

Read more about what contributes to your market value in our free white paper, Understanding the Value of Your Practice.

 

LEARN MORE: Comprehensive Valuation Report

 

Topics: Business Value, Multiples

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