How Industry Multiples Impact Small Business Valuations

Executive Summary: Understanding and applying industry-specific valuation multiples is fundamental to accurately assessing the value of a small business. While metrics like EBITDA and Seller’s Discretionary Earnings (SDE) are commonly used in private company valuations, the appropriate multiple can vary significantly depending on the industry. In this article, we explain how these multiples are derived, […]

How to value equity

Valuing Equity

This post will take a small dive into some common ways to calculate the equity value of a company, focusing on private businesses. Valuing Equity Definition  In short, valuing equity is the ownership interest in a business after subtracting the financial obligations (e.g., debt)/debtholder ownership). Company Value – Debtholder Ownership = Equity Value Valuation professionals […]