We are EBITDA Multipliers!


 

Your EBITDA is what determines how much you can borrow, who will invest in you and how much you will put in your pocket when you finally sell your company!

If you invest in a business, we help our clients build a faster return on their investments.  

Recession-Proof: Doing more with less!

Or schedule a no-obligation Initial Consultation

 

 

 

How to evaluate company value? - (simplified)

EBITDA

Business Value =

Multiplier

vision2-scale-economy
EBITDA

Business Value

industry-change-disruption
X Multiplier

EBITDA Multiplier

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is one of the ways banks, investors, and buyers may assess the core value of an organization.  But how much will an investor spend to buy your company? The simplified answer is,

EBITDA * EBITDA Multiplier = Business Value

The multiplier quantifies the question, "What if the owner leaves, what is the risk that the business will still be around tomorrow? "  

Why should you care?

Here's an example: If the EBITDA valuation on your company/investment is 5 million dollars,

  • A multiplier of 2 means your investment is worth 10 million dollars.
  • While a multiplier of 0.5 means the company will be worth only 2.5 million dollars. (even if profits are 5 million per year.)
  • Increasing your multiplier to 3 increases business worth to 15 million dollars. 

For this example, each rise in the multiplier adds 5 million dollars in value without the need to increase monthly earnings.  

What you will see 

As you focus on your multiplier, most of our clients see...,

  • For each additional multiple, the owner can add two weeks more of vacation.
  • A 30% improvement in worker productivity
  • A 20% increase in customer satisfaction
  • A $1.50 increase in profit for every $1 spent on employee salaries and benefits

Note: Our record has been a $30,000 increase in income from 4 hours of consulting.

What can Executive Outliers do for you?

Before you invest in a company,

  • Get and Evaluation about out what you are buying.
    •  What's good
    • What's bad
    • What will it take to improve the multiplier

On your present investments

  • Help to improve your investment
    • Identify "Low hanging fruit!"  (Note: These are projects that will grow earnings in the next 90 Days.)
    • Work with your team (or we'll do it for you) to deploy those improvements

Want to learn more about us?  Check out this blog article,

Recession-Proof IT: Doing more with less

or Contact us directly when you are ready to make a change.

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  • Schedule a meeting:   Initial Consultation   

 

 

Want to buy a business?

We have a proprietary system for identifying potential business buyers.  Don't just send an email to your network and hope.  We will introduce you to interested and qualified owners, partners and companies who are waiting for the right offer.  

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