The Multiple Myth has been written to help both buyers and sellers understand what drives value in a business. And recognising that by having these key drivers in place, or not, will ultimately increase the transfer value of the business, or destroy it.
In November 2023, John appeared on the cover of industry specialist magazine, Acquisition Aficionado. His article inside discussed the topic of how to put your business into the best shape to maximise the transfer value upon sale. While John touched on four optimization areas, in the book he expands on this giving ten areas to focus on to achieve the best multiple upon sale.
Let’s tackle the subject matter head on. I can waffle but I’m going to get straight to the point.
There is a myth that says if you run your business for 10-20 years your business will be worth 7 figures or more. This is simply not true.
There is a myth that goes, if you do decide to sell your business and you put it in the hands of a consolidator or business broker, they are going to get you top pound/dollar for it. Simply not true.
There is a myth that small and medium businesses (SMB) can get the same exit valuations as corporations and giant organisations. Simply not true.
There is a myth that says the SMB marketplace is achieving higher multiples of profit than ever before because there is more data around to prove others are selling for higher prices. Simply not true.
There is a myth that says businesses are selling faster than ever and if you place your business for sale, it will be sold within 1 month. Simply not true.