Value is more than profit.
Buyers pay for durable, transferable cash flow. These factors can move an offer up or down even when two businesses earn the same amount.
Clean financials and well-supported add-backs give buyers confidence that earnings will continue after a sale.
A capable team, documented processes, and fewer owner hours make the business easier for a buyer to operate.
Contracts, subscriptions, and repeat customers reduce uncertainty and often support stronger multiples.
Steady or rising revenue signals demand. Declining sales generally increase perceived buyer risk.
A broad customer base is safer than relying on one account for a large share of total revenue.
Buyer appetite, financing availability, margins, and sector outlook all influence the multiple the market will bear.