I have a question in relation to the valuation of a target company. A value can be calculated using Discounted Cash flow, Normalized EBITDA X Multiple – Debt. The Multiple can vary in range, I would like your to hear your thoughts on the average multiplication factor and how the Commercial DD and future forecast could effect this?
Thanks,
John
I think average multiples probably vary depending on the sector. I can speak for the sector I’m in, which is public accounting. Multiples typically range from .8% – 1.25% times revenue.