exitplanning

What Drives Value in Your Business?

What Drives Value in Your Business?

It’s important to understand what a business is worth, and it’s equally important to understand what drives the value of the business, and it’s not all about EBITDA. I valued a food manufacturing business recently that was worth 5 X EBITDA. Two weeks later, I valued another food manufacturing business that was similar in size. It was worth 9 X EBITDA. Why such a big difference?