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According to NY Report publisher and editor-in-chief Robert Levin, the trend among business owners is to focus on growth, exit, or both. In his “From Letter.” Levin writes, “Owners are now obsessed with growth. . . To figure out why, you need to look at another trend: multiples (usually EBITDA but sometimes revenues) used to agree on purchase prices for businesses are relatively low—especially for small businesses. To make matters worse for small businesses looking to sell, the terms of these deals are pretty bad: very little, if any, cash up front with most of the consideration coming in the form of earnouts.”
And apparently, readers agree. More than half of all survey respondents said they believe they need to scale in order to have a successful exit.
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Daria Meoli is the Executive Editor at The New York Enterprise Report. She can be reached at dmeoli@nyreport.com
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