Valuing a MedTech Business
Some of the most common questions business owners ask us about relate to the value of their business. We wish we had easy answers, but the truth is that every situation is different and there are a number of variables that influence valuation.
Even if a one-size-fits-all answer doesn’t exist, there are some general guidelines that can be referenced. CEO Florence Joffroy-Black and Managing Director Dave Sheppard discussed key factors that affect the value of your business in a recent article for Today’s Medical Developments Magazine.
Timing – As in many things in life, in M&A, timing is everything!
Size – It’s also true that in M&A, size does matter!
Assets – Beyond the core value of your business, the type (and quantity) of your assets can contribute to valuation. You want a potential buyer to say: Nice assets!
Team – If you sell your business, can your team manage the day-to-day operations of the company with a new owner? In other words – (the right) People add value!
The article includes a table with EBITDA multipliers, valuation notes and likely buyers for private and public companies at all stages — click below to read more.