If you own a manufacturing business, the “rule of thumb” might be a 4x multiple. But applying that math blindly can cost you millions.
Valuation is not a fixed number; it is a range.
What Moves the Needle?
Why does one company sell for 2.5x while a competitor with the same revenue sells for 5.5x?
Factors that move you to the LEFT (Discount Valuation):
- Owner Dependency: You are the business. If you leave, revenue drops.
- Customer Concentration: One client pays the bills.
- Declining Revenue: You are selling on a downtrend.
- Messy Books: Financials that are hard to verify.
Factors that move you to the RIGHT (Premium Valuation):
- Recurring Revenue: Contracts vs. Project work.
- Management Depth: A team that stays after you leave.
- Proprietary IP: A product or process that is hard to copy.
- Diversified Customers: No single client represents over 10% of revenue.
The Strategy
We don’t just “list” businesses; we perform a gap analysis. We identify the specific factors that are dragging your valuation down and help you fix them before you sell.
Sometimes, waiting 12 months to fix a concentration issue or sign a key contract can add 20% to your final sale price.
Don’t settle for “average.” Let’s build a premium exit.