By Channing Hamlet
Managing Director, Objective Capital Partners
For business owners to truly assess the potential value of their business, they must first understand what drives business value in their industry. While at a very high level one can use metrics like Enterprise Value (EV)/Revenue or Enterprise Value (EV)/ EBITDA multiples to assess rough hypothetical values, the reality is that each industry has a unique valuation metric that is used to assess businesses that operate in a particular space or sector. Additionally, there are a number of factors besides just growth and profitability that drive significant value.
Successful business owners and leaders create, understand and track specific metrics that increase the value of their business. This article was written to assist you in defining the things to think about in order to manage and grow the value of your business.(more…)