2 responses to “It’s Not About the Multiple; It’s How you Get There”
AnonymousDecember 16th, 2009 at 6:12 PM | Permalink | Reply
I would agreee to a point, it is important atleast to the seller to get some benefit more then just value for recurring revenues, who ever buys them, will benefit for more than the first year so it is a way to measure how much they will get, I also think that there is a lot to be said for the no recurring revenues that also make up the company and they both need to be looked at strongly, fairly and realisticly.
Nothing like having the right expectation.
AnonymousDecember 21st, 2009 at 5:15 PM | Permalink | Reply
You make a good point. If we can get channel professionals to stop this obsession with multiples we can actually make some headway next year in seeing valuations for MSPs increase. What will happen with VAR valuations? Well, more on that later…
I would agreee to a point, it is important atleast to the seller to get some benefit more then just value for recurring revenues, who ever buys them, will benefit for more than the first year so it is a way to measure how much they will get, I also think that there is a lot to be said for the no recurring revenues that also make up the company and they both need to be looked at strongly, fairly and realisticly.
Nothing like having the right expectation.
You make a good point. If we can get channel professionals to stop this obsession with multiples we can actually make some headway next year in seeing valuations for MSPs increase. What will happen with VAR valuations? Well, more on that later…