Correctly valuing a business is central to any successful M&A transaction. As much art as science, valuation strives to quantify the financial benefits of owning the business today and in the future. Here we kick off a series of articles examining different valuation approaches, limitations, and best practices. This piece introduces the core principles of […]
In today’s M&A environment, an EBITDA multiple is by far the most common methodology employed to value a privately owned business.
When valuing a business, most company owners are worried about the income statement. But experienced valuators and investment bankers always consider the balance sheet. The balance sheet sets out critical information about the financial strength and weakness of the company.