11 Mar What’s the difference between 3X and 9X in a deal?
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This is a must listen for buyers and sellers!
What’s the difference between 3X and 9X in a deal?
- Size
- Gross and EBITDA Profit margins
- Growth rates and forecast
- Technology specialization & Vertical specialization
- Type of revenue: contracted, recurring
- Client types and concentration
- Deal terms: equity, selling-in
- Strategic buyer: the right buyer can help drive the right multiple.
- Competition in a deal
- 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 >>