In Brad’s book, Buy, Sell, or Grow – it’s all about Value!, keys to increasing multiple are:
- Earnings – high absolute, EBITDA and gross margins
- Size – revenues, growth, trajectory
- Revenue base – recurring or long-term contractual
- Scalable
- Brand – proprietary, strategy, differentiator, advantage
- Stable – diversified, non-cyclical, consistent
- Business model – defined, effective, simple; disruptive?
- Management team – and succession
- Culture/people
- Relationships – customers and others
- Technology
- Clean – example, timely and accurate financials
- Eventual exit for buyer – path, certainty, success