The most common method
of valuing a small to medium business is Enterprise Value (EV).
Enterprise Value is generally based on a multiple of your earnings.When
investors and purchasers determine the Enterprise Value of a business they look
at 3 things:Actual earnings/profit;Market factors (e.g...
“Number
one, cash is king… number two, communicate… number three, buy or bury the
competition” - Jack Welch, ex-CEO of General Electric, when asked about his
keys to success.
Jack’s number one is spot on: getting,
maintaining