Valuation Multiples: Unlocking the Key to Business Valuation
Valuation Multiples: Unlocking the Key to Business Valuation Quick Answer Valuation multiples are ratios that link a company’s enterprise value to a financial metric like EBITDA, revenue, or earnings, enabling fast market-based comparisons across similar businesses. The most common multiples are EV/EBITDA, EV/Revenue, and P/E ratio, with EV/EBITDA favored for founder-owned businesses because it normalizes […]
Accountant vs M&A Advisor in 2026: Why They Value Your Business Differently
Accountants apply book value and asset-based methods; M&A advisors apply market multiples and DCF. Why the same business gets 2 different numbers and which one buyers actually care about.
How to Value a Business With Declining Revenue (Without Giving It Away)
How to Value a Business With Declining Revenue (Without Giving It Away) Valuing a business with declining revenue in 2026 requires shifting from TTM EBITDA to forward EBITDA methodology, then applying a 1-3 turn multiple discount depending on decline severity. Modest decline (5-15% YoY) typically incurs a 1 turn discount. Sharp decline (15-30% YoY) incurs […]
Fair Market Value vs Investment Value: What Buyers Actually Pay
FMV (what a willing buyer pays a willing seller) vs investment value (what a specific strategic buyer pays for synergies). Why investment value can be 1-2x higher and which applies to your sale.
Surprising Valuation Discounts for Sellers
Surprising Valuation Discounts for Sellers Quick Answer Private businesses typically trade at discounts of 20% to 70% below their full equity value because buyers price in the time, risk, and illiquidity of a private exit, which often takes 6 to 9 months. This discount reflects the lack of a ready market and instant liquidity that […]
Trailing Twelve Months (TTM) in M&A in 2026: Why Buyers Price Off TTM, Seasonality, QoE
Trailing Twelve Months (TTM) in M&A in 2026: Why Buyers Price Off TTM, Seasonality, QoE Trailing twelve months TTM in M&A is the pricing metric buyers use because it captures the most recent 12 months of business performance regardless of fiscal year timing. Buyers price off TTM EBITDA because it eliminates the stale-fiscal-year problem (a […]
Goodwill in Business Valuation (2026): What It Means for Sellers
Goodwill in Business Valuation (2026): Personal vs Enterprise & What It Means Christoph Totter · Managing Partner, CT Acquisitions M&A advisory across 500+ active capital partners · Intangible asset valuation: goodwill, IP, customer lists · Updated June 6, 2026 Goodwill in business valuation is the premium a buyer pays above the fair market value of […]
How Accounts Receivable Impacts Your Business Valuation in 2026: Collection Speed, Working Capital Peg, and Closing Mechanics
AR factors into both your headline valuation and the working capital peg at close. How buyers underwrite collectability, why aged AR gets discounted, and the 3 cleanup steps before sale.
Painting Business Valuation and Growth Opportunities
Painting Business Valuation and Growth Opportunities Quick Answer Painting businesses typically sell for 1.41x to 2.84x SDE (Seller’s Discretionary Earnings) or 0.37x to 0.55x revenue, depending on service mix, customer concentration, recurring revenue, and local market conditions. A proper valuation reviews financial statements, identifies key value drivers and risks, and accounts for home improvement demand […]