this post was submitted on 11 Nov 2023
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I thought my company's valuation would be 5 years of my average revenue. But I heard it's actually 2 years. What's the right way to know this?

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[–] reddithasruinedlife@alien.top 1 points 1 year ago

2-3 years of true profit for small businesses. No one would pay 5 years of revenue, that's far too high.

Profit not revenue. The grey area is mainly goodwill and assets.