NiklasJames.com

Maximizing the multiple

Maximizing the multiple

Growing EBITDA is the biggest driver for expanding the valuation, but you also need to build a better & more high-quality business to achieve a premium exit multiple.

Strong independent sponsors transform and de-risk their platforms by "professionalizing" the previously unsophisticated founder-led operations, thereby earning a higher, institution-grade valuation.

If your banker says your business is worth 6-9x, the factors in the chart below determine where in that range you will ultimately land.

About the author

Hi, Niklas here 🙂📝

This is my journey as an independent sponsor & equity investor.

I publish tactical insights for deal-by-deal private equity.

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