Why Similar Businesses Often Sell for Very Different Prices
Many business owners understandably focus on revenue and profitability when thinking about valuation. Financial performance is a critical starting point for buyers. At the same time, it is rarely the only factor considered. In practice, two businesses operating in the same industry with similar revenue and similar earnings can still receive very different offers when they go to market. For owners who have spent years building their companies, this can be surprising. Buyers evaluate businesses