Factors that Affect ESOP Valuation

Business valuations are calculated a number of ways, as outlined in our business valuation blog post here. What’s important to note, though, is that typically an owner who is selling his or her business will want to maximize value.  Our goal with this post is to break down the factors that make the largest impact to company valuation.Recurring revenue / subscription revenue.  Recurring revenue gives confidence to the longevity of the business.   If there is any way to have recurring / subscription oriented revenue, this will command a higher valuationSEE DETAILS

Private Equity Exit

A private equity exit is the sale of your company (or a company) to a private equity (PE) firm.  PE firms are usually partnerships that are comprised of many shareholders that have pooled investment dollars, invested them into the acquisition and growth of privately held companies, and have a very specific goal of beating the average annual returns of the stock market index, which are typically in the 7-8% per year range.PE firms consolidate around industry verticals and use a variety of strategies to produce returns on investors dollars.  TheSEE DETAILS

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About Legacy Press Ventures

Our mission is to maximize the benefits of capitalism and business ownership based on a fundamental belief that employees are the most valuable asset of a company, and that company financial performance accelerates when wealth is shared with employees.