EBITDA Multiples by Industry: How Much Is Your Business Worth?
We present data on EBITDA multiples across eight industries, along with detailed analysis and tips to improve your multiple before exiting.
Is growing through acquisition a smart strategy?
It can be.
Take Danaher Corporation: Since the 1980s, this conglomerate with roots in manufacturing has acquired over 400 companies.
In the chart below, Danaher’s growth is benchmarked against the S&P 500. While the S&P 500 has appreciated a not-insignificant 750%, Danaher has appreciated a whopping 25,000%. That’s a 20x difference.
Obviously Danaher is an outlier. But the company’s success is also proof that by executing on a clearly defined, repeatable acquisition strategy, CEOs can see massive results.Â
As Axial CEO Peter Lehrman outlined in a Vistage webinar earlier this summer, an acquisition can be the gateway to a company’s transformation.
Watch below:Â
https://www.youtube.com/watch?v=OhOgtn8Xw9I
He points to Berkshire Hathaway’s acquisition of Geico, eBay’s acquisition of Paypal, Google’s acquisition of Applied Semantics, and Facebook’s acquisition of Instagram as high profile examples.
Why were those acquisitions so crucial? What should you look for as a business owner approaching targets?
In this webinar, Peter zeroes in on topics like: