Valuing Your Recent Business

If your business is recently started, you have a minimal track record.

In the normal M&A world, we would take a 3 or 5 year average.

Taking a 3 year average for a business that just started is not appropriate.

For a business that just started, but had losses the first 2 years, we wouldn’t count the first year or two where there were no sales or profit. A buyer would try to negotiate using that, but we would dismiss that quickly.

One stance we would take is that a business trending upward is always more valuable than the other way. The most recent year is always more heavily waited than what happened 36 months ago as well.

This is where moving averages comes in to play.

But if you only have 1 or 2 years of a track record, then valuation will reflect the scenario that’s happening. Meaning is this a hot business, and is there a lot of potential, or is this something that caught a wave, but on the way out?

There are various ways to go over valuation with a recent business.

Most importantly, we are going to analyze if this can be duplicated again. For many businesses that is a yes, and then, we will value it at a multiple following the recent year.

Please reach out to us if you have any questions relating to acquisitions:

Email – [email protected]

Phone – (800) 773-1523

Simply engage us below to get started whether it comes to bringing you qualified buyers where we list your business for maximal value or engaging us to bring qualified and vetted businesses that match your exact target criteria such as industry and EBITDA multiple if you are buying a business:

Buyer-Side Engagement – Retain Us to Provide you with Qualified and Vetted Businesses that Match Your Target Criteria

Seller-Side Engagement – Retain Us to List Your Business and Bring Legitimate Buyers to the Table

Leader in Acquisitions with Expertise in Representing Sellers & Buyers on Deals

Jarbly is a leader in acquisitions with expertise in helping with listings, negotiations, LOI's, asset purchases, company purchases, and real estate purchases. JARBLY has access to high net worth individuals if you are on the sell-side and businesses that may be of interest to you if you are on the buy-side.

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Phone: (800) 773-1523
Email: [email protected]

About Jarbly

JARBLY’s focus is on acquisitions, predominantly businesses with valuable assets and cash flow. As JARBLY has been heavily involved in the digital space including its own ventures for a decade with servicing hundreds of clients around the world, it is very well versed with understanding technical aspects of a deal including value proposition, product offerings, marketing, metrics, ROI, moats, and value-add initiatives. JARBLY has the ability to take advantage of all aspects of a business deal, and is very creative with structure to help bring in partners or plan a strategic exit. JARBLY has helped brands cultivate business related and real estate opportunities that are ripe for acquisition by helping buyers and sellers get what they are seeking from a deal.

Whether it comes to selling your business, acquiring one or forging a partnership opportunity, we understand deals and where the maximal value in a transaction is. Our bread and butter is to provide a win for our clients. We have the unique and uncanny ability to leverage our network and our sources of distribution to go out to the public to position your assets for a maximum sale. We draft and prepare materials such as prospectuses, Confidential Information Memorandums, and high quality Value Proposition Decks which convey a message of value to attract high quality offers in the shortest time possible.

JARBLY looks forward to working with you on your next acquisition, digital exit, partnership, or real estate opportunity including both commercial and high end residential properties with high end service from a qualified team of passionate individuals that help you secure the deal.

We know how to curate high quality listings and attract high net worth individuals interested in your deal.

We know how to generate traction on a listing through means of marketing openly or discretely, and we have thousands of high net worth individuals who we have developed relationships with to draw interest on a daily basis. While many firms focus on creating barriers to sell your business out of fear of wasting time, we have protocols in place to get as many offers as possible to help drive up the valuation and the proceeds. On the flip side, we know how to structure deals creatively for our buyers to help them feel secure.

Please take a look at our process to get a sneak peak into how we help our buyers and sellers maximize the deal.

Valuing Your Recent Business