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Posts contributed by Al Statz CBI, MBA
The following posts were contributed by Al Statz CBI, MBA.
Posted on September 17, 2009

Size Matters In Valuing A Business

I hear lots of interesting observations and questions about the value of businesses. Recently a business owner said to me, “Peet’s Coffee, (Nasdaq: PEET) trades for 20 times earnings, so should I be able to sell my Mike’s Coffee Emporium for that?” It’s a great question. Besides brand recognition and the liquidity of public vs. private company shares, size is the obvious difference between Peet’s and Mike’s. So how much does the size of a company and its earnings affect valuation multiples? Quite a lot as it turns out. Al Statz, business broker in the North Bay covers this issue.

Posted at 8:03am | 3 Comments