Deal Insight Series:

How do you value a potential acquisition?

In this video of our Deal Insight series, we talk to serial entrepreneur Jonathan Jay about valuing potential acquisitions.

For over 20 years, Jonathan has bought and sold companies, restructured groups, bought out competitors and successfully completed private equity deals both buy-side and sell side. In this video mini series he shares his deal insights with us.

The transcript of the interview follows:

Do you have any rules of thumb when valuing a potential acquisition?

When accountants value a business, they have several methods of valuing a company based upon discounted cash flow, and based upon a multiple of EBITDA. Some industries and professions have standard criteria; for example, accountancy firms typically sell for a multiple of annual revenue as opposed to profit.

I have a different way of approaching an acquisition...

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Jonathan Jay is the founder of The Dealmaker’s Academy.

Business Sale Report have been providing our members with business acquisition opportunities and insightful resources since 1995.