What’s the difference between 3X and 9X in a deal?

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What’s the difference between 3X and 9X in a deal?

1. Size
2. Gross and EBITDA Profit margins
3. Growth rates and forecast
4. Technology specialization & Vertical specialization
5. Type of revenue: contracted, recurring
6. Client types and concentration
7. Deal terms: equity, selling-in
8. Strategic buyer: the right buyer can help drive the right multiple.
9. Competition in a deal
10. Market/Economic conditions

RELATED EPISODES:

• Episode 169: What are the Differences Between a Valuation and a Deal? Listen now >>
• Episode 166: Understanding Revenue Models and how they Impact EBITDA? Listen now >>
• Episode 163: Strategies to Manage High Seller Expectations. Listen now >>

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