Ronit Netzer Business Broker

Barker Business Brokerage Limited Licensed Under REAA 2008

The right “Multiplier”

There’s something that’s been on my mind, and I really want to get it off my chest. It’s about this term that keeps popping up in conversations – “Multiplier.”

Now, don’t get me wrong, I get why it’s used. It’s supposed to simplify things, make it easier to talk about the value of a business. But here’s the thing – it’s not that simple.

Every time someone brings up the word “Multiplier,” it feels like we’re skipping over all the important stuff. Like, sure, numbers matter, but there’s so much more to a business than just earnings, revenue, and profits.

It’s like trying to sum up a person’s entire life story in a single sentence. You just can’t do it justice.

And let’s not forget, businesses are as unique as are the people who run them. What works for one might not work for another. So why do we keep trying to fit them all into the same box?

Plus, things change. What might have been a good “Multiplier” yesterday might not hold up tomorrow. It’s like trying to predict the weather a year in advance – good luck with that!

And then there’s the risk factor. Running a business is a gamble, plain and simple. But talking about “Multipliers” makes it sound like there’s no risk involved. Trust me, there’s plenty.

So, can we please stop fixating on this “Multiplier” thing? Let’s have real conversations about real value – the kind that takes into account all the ups and downs, the twists and turns, the heart and soul of what makes a business truly valuable.