Valuation & Multiples Archives - Page 2 of 6 - CT Acquisitions

Seasonality in Business Valuation in 2026: How 70-85% Concentration Suppresses Multiples 10-20%

How seasonality affects business valuation

Seasonality in Business Valuation in 2026: How 70-85% Concentration Suppresses Multiples 10-20% Seasonality in business valuation matters more than most owners realize because buyers discount concentrated-quarter revenue heavily unless properly normalized. Businesses with 70-85% of revenue in one or two quarters (landscaping, roofing, tax preparation, retail holiday) typically see multiples suppressed 10-20% versus year-round comparable […]

Valuing Businesses with Cash-Only Operations

How to value a business that runs on cash transactions

Valuing Businesses with Cash-Only Operations Quick Answer Cash-only businesses typically sell at a 10 to 25 percent discount to comparable credit-based businesses due to perceived earnings uncertainty, but that gap narrows significantly when owners document all revenue streams, reconcile daily deposits, and build formal income records that appraisers can audit. Buyers and lenders discount valuations […]

How to Value a Rapid Growth Business in 2026: Forward EBITDA and Rule of 40

How to value a business with rapid growth

How to Value a Rapid Growth Business in 2026: Forward EBITDA and Rule of 40 Valuing a rapid growth business in 2026 shifts from TTM EBITDA to forward EBITDA methodology and Rule of 40 framing (growth rate plus EBITDA margin). 30%+ growth with Rule of 40 above 40 commands premium multiples: 10-15x forward EBITDA for […]