Manufacturing Industries Valuation Multiples Manufacturing company valuations are often discussed in terms of multiples of EBITDA. This is because EBITDA is a common measure of a company's cash flow that allows apples-to-apples comparisons between companies with different capital structures. We …
Planning to Sell Your Business in a Time of Uncertainty
Planning to Sell Your Business in a Time of Uncertainty Many private businesses survived the pandemic crisis of 2020 and have now stabilized, but for others, the perfect storm is still raging. How can business owners ensure the survival of their businesses and the ultimate positioning of their …
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Business Acquisition and Valuation in Electronic Manufacturing: Correct Terminology Matters
Business Acquisition and Valuation in Electronic Manufacturing: Correct Terminology Matters Acquirers of electronics manufacturers will pay more for certain types of businesses and will be more attracted to companies when they are properly described. Thus, the correct use of industry …
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ROWC: An Effective Tool to Measure Financial Strength and Valuation for Electrical/Electronic Distributors
Buyers typically utilize a historical multiple of EBITDA to arrive at a valuation for an electronic distributor. However, a positive operating income on the Income Statement does not guarantee a high business value. A distributor’s business might look profitable (positive operating …
Ten Factors Determining Business Value in a Sale
Ten Factors Determining Business Value in a Sale Business valuations in a sale are based on the interactions of several important factors. We have outlined the ten key factors to consider. Operating Cash Flow – The number one determinant in business value is income or owners operating cash …