How Your Amazon Business Is Valued?
Your business will be valued by the trailing 12 month monthly profit average times by a multiplier, typically between 36 and 60. For example, if your average monthly profit over 12 months is $30,000, your business could be valued anywhere between $1,080,000 and $1,800,000 using the multipliers of 36 and 60 respectively. However many factors come into play when determining which multiplier the buyer will use to value your business, but there are certain things that are in your control that can positively influence it. A solid team in place, clear SOP’s, diversified SKU range, simple operations, powerful and trademarked branding; these are just a few examples that can improve your multiplier. Of course, it can get quite complex. You will get answers to all these questions and much more during our Exit Planning Program.
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