The M or the A in Your Future
A number of things influence how EBITDA multiples are established. In this case, company size does matter, and the larger a firm is, the higher its multiple likely will be. For example, a firm that advances from $3 million to $10 million in annual EBITDA may add up to a full point to the EBITDA multiple range noted above. Buyers will look at profitability as well as top-line growth as they decide what multiple a deal should be based on.
- Companies:
- New Direction Partners
Peter Schaefer, partner at New Direction Partners, is an experienced dealmaker with more than 25 years of investment banking and valuation experience, 20 of which has been focused exclusively on the printing and packaging industries. He has closed more than one hundred transactions in virtually every segment of the printing and packaging industries. In addition, he has performed hundreds of valuations for ESOPs, estate and gift tax planning and strategic planning purposes. Contact him at (610) 230-0635, ext. 701.