How to Increase My Company's Value
A company valuation, most simply stated, is a multiple times a financial metric (e.g. revenue, EBITDA, gross profit, etc.). To improve your company's value, you must either improve its financial metrics or increase the multiple. When it comes to improving revenue, EBITDA or gross margins, you may be the best person to do so, but when it comes to improving the multiple, Orion will show you how.
Contrary to popular belief, the multiple for an industry is not set, it is only a guideline. If we look at software or technology companies, private company EBITDA multiples range from 2 to 30 and revenue multiples range from 0.5 to 15. Usually, the acquisition happens at the higher end of the range when a buyer finds more long-term sustainable growth (including synergy) and lower risk.
So how does a company reduce risk and demonstrate more sustainable growth? There is no standard laundry list of items for each company because each company has their unique strengths and their weaknesses. We invite you to attend one of our webinars on increasing your company's value to learn about how to determine the strategies employed by professional investors.