The Difficult Question

Question

Hi all,
Could someone help me in identifying an approach to the question asked at the end of the case. The idea that I get is that the client needs to market this segment in such a way that buyers pay the highest price. How can this be done?
Thank you!

Answer 1

Hello,

There are different methods to estimate the price of a company. One of the most common is the "Multiplier method" that is based on the profit of the company (the logical consequence is that you should try to increase profits, but it's not the only factor to take into consideration).

You can find information simply written here:
https://exitadviser.com/business-value.aspx?id=business-valuation-methods#by-profit

Best,
Luca

Answer 2

Hello!

If you don´t have any market capitalization data -which is, at the end, what gives you the value of the company in the martkets-, you can always estimate based on profit or EBITDA.

Hope it helps!

Cheers,

Clara

Answer 3

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Answer 4

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Answer 5

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