Acq 7: Introduction

“Before anything else, preparation is the key to success.”

– Alexander Graham Bell, Inventor

Pricing a business is based primarily on its profitability. Profit is the #1 criteria buyers look for when acquiring a business and the #1 factor buyers use to value a business. There are other variables that buyers may consider, but the majority primarily look for one thing – profit. Most valuation models are therefore based on some multiple of profit, or EBITDA, a business generates.