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.



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