Are businesses selling on Profit or Recurring Revenue Multiples?

Welcome to Blog 4 of our 5-part series on whats your business worth. One of the top 3 questions we get asked every other week is whether practices are selling on multiples of profit or recurring revenue. The answer is both! When you purchase a business, you are fundamentally hoping to make a profit from the business. Every buyer we …

Business Value, Royal Commission, FASEA and FOFA Grandfathered Revenue

The removal of all grandfathered revenue in 2020 has impacted some businesses far more than others. The fundamental mathematics underpinning profit for a practice say that unless revenue has increased profit must fall. If profit falls invariably, the value of the business must fall. So at a practice level, the following has occurred: There has been a severe reduction in …