 Targeting businesses with increasing cash flows minimizes buyer risk. Thus, current and future cash flows often determine whether owners will receive the maximum price for selling their businesses."John Brown, Exit Planning |
Succession Planning: Can I Get a Six-Times Multiple?
John Brown | IRIS, December 2016
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Summary: Cash flow is a critical element in quantifying gaps between owners’ personal and financial resources and the resources they need to exit their businesses on their terms.
Based on conversations they’ve had with or overheard from other owners, business owners commonly ask their advisors a variation of the following question: “Do you think I can get a six-times multiple for my business?” How would you respond to this question?
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