(586) ASK-MATT - SCORE REALTY LLC
MATTHEW FOLLIS Home Based Waterford, MI 48329
Phone: (586) 275-6288 Mobile: (586) 275-6288

Commercial Real Estate


Commercial Real Estate


If you want to find out what your business could sell for, you'll have to tackle something called Ebitda. This tongue-twisting acronym stands for earnings before interest, taxes, depreciation, and amortization and is a tool that allows you (and a potential buyer) to value your company based on its cash flow.

 

Remember, your company is unique. Regardless of the industry averages, its value will depend on factors such as the talent of your management team and whether you are an innovator.

Multiply these numbers times your Ebitda or cash flow to get a ballpark estimate of your business's worth:

  • Manufacturing: 5.5 to 8.5
  • High tech: 6 to 12
  • Health-care services: 5 to 9
  • Retail: 4.5 to 7.5
  • Public relations, advertising, media: 3 to 6.5
  • Restaurants: 4 to 8