The article "AI's Impact on Midmarket Business Valuation" discusses how businesses can maximize their valuation by integrating AI into their operations. It suggests that companies that strategically adopt AI will gain a competitive edge, similar to how businesses that embraced the internet in the 1990s did
As a rule-of-thumb, companies with under $20M in revenue tend to get discounted offers from potential buyers. The reason is simple: smaller companies carry higher risk for a buyer. To hedge that risk, buyers typically offer lower multiples.
Healthy businesses grow. However, there are three distinct options for growth. As we step into a new season, with deregulation on the horizon and over $1.9 trillion in private capital waiting to be invested, the way we think about growth matters.
In this article, we will explore different reasons someone might buy a company. These reasons span a spectrum of value, from low valuation to high valuation. Smart owners understand this and begin working today to set their company up for a high valuation.