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    What is 'strategic' value in a business sale?

    Posted by James Price | JPAbusiness on 21-Jun-2017 05:57:00

    Strategic value is the value a purchaser is willing to pay for a business, over and above what an impartial business valuer might determine is ‘fair market value’.

    As we have discussed in our eBooks, one common method of determining a business’ fair market value is to use a multiple of earnings.

    Multiple of Earnings is the term for how many years or months a purchaser is prepared to wait before they recoup the value they paid the outgoing business owner, based on an assessment of business maintainable earnings (or sustainable earnings).

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    Topics: Selling your business, strategic value

     
    Disclaimer: The information contained in this blog is general in nature and should not be taken as personal, professional advice. Readers should make their own inquiries and obtain independent, professional advice before making any decisions, taking any action or relying on any information in this blog. 
     
     

     

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