3 ms·
Thanks for posting this. I was also misinformed, thinking 7/15x was reasonable, but for small businesses valued primarily on cashflow, looks like 3x is more acc
by hn_throwaway_99 3y ago
Thanks for posting this. I was also misinformed, thinking 7/15x was reasonable, but for small businesses valued primarily on cashflow, looks like 3x is more accurate (of course, growth affects that number a lot).
I thought this had a lot of good data: https://www.bizbuysell.com/learning-center/industry-valuation-multiples/ https://www.bizbuysell.com/learning-center/industry-valuatio.... For "Software and App Companies", the multiple was 3.17.
- hinkley 3y agoPayback period I assume. 3 years at 3x if revenue is flat. I suspect 3.17 is around 30 months if your revenue growth outpaces inflation.